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Q: How the Valuation Principle helps a financial manager make decisions?
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What are the financial decision areas?

Modern approach of financial management provides a conceptual and analytical framework for financial decision making. According to this approach there are 4 major decision areas that confront the Finance Manager these are:- a) Investment Decisions; b) Financing Decisions; c) Dividend Decisions d) Financial Analysis, Planning and Control Decisions


Modern financial manager vs traditional financial manager?

The modern financial manager uses computer technology to develop strategies. The traditional financial manager uses research and evaluation to develop strategies.


What is the task of the international financial manager?

task of the international financial manager


When was Financial Risk Manager created?

Financial Risk Manager was created in 1997.


What is your Main Role as Financial Manager?

The main role of a financial manager in a firm is to make all financing and investment decisions. Financing decisions canvas how to finance business ventures, whether it be done by issuing new equity or bonds or through the company's retained earnings. Investment decisions are those made on where and how to allocate funds the company has earned in profits, so that the money may generate a rate of return rather than sit idle. Typically the financial manager is concerned with the "time value of money" therefore they employ present value techniques in order to find the value of a dollar today versus a dollar in the future; this affects financing and investment decisions immensely since these decisions are all made at time period n=0.

Related questions

For which decision areas is the financial manager responsible?

Answer-Modern approach of financial management provides a conceptual and analytical framework for financial decision making. According to this approach there are 4 major decision areas that confront the Finance Manager these are:- a) Investment Decisions; b) Financing Decisions; c) Dividend Decisions d) Financial Analysis, Planning and Control Decisions


What is the scope of financial objective of business organizations?

Financial objectives are created to guide managers with their financial decisions. By comparing their decisions to the financial goals of the organizations, the manager can determine whether they are on the right track.


What are the decisions taken by financial managers?

Decisions are not taken, they are made. Financial managers obviously make decisions about MONEY. Where to spend it and how much and why. Business owners are typically the financial manager of a company simply because they want to make money.


Why it is important for financial manager to understand the valuation process?

Valuation is the process of determining the current worth of an asset or company. It is very important to know the method of valuation and whether is done as required by all statutory bodies concerning the same. It has a direct impact on stock prices as analysts determine based on companies earning and the worthiness of the company. Even the banks and financial institutions who provide loan to an enterprise wants to provide / extend credit facility only based on its worthiness which valuation is going to provide. It is also important to know the actual state of business to make any important decisions. Hence it is important for a financial manager to understand the valuation process so that they know where do they stand and also helps understanding if they were valued correctly.


What are the financial decision areas?

Modern approach of financial management provides a conceptual and analytical framework for financial decision making. According to this approach there are 4 major decision areas that confront the Finance Manager these are:- a) Investment Decisions; b) Financing Decisions; c) Dividend Decisions d) Financial Analysis, Planning and Control Decisions


What is the nature and scope of financial accounting?

Financial accounting helps people and businesses manager their money. With better information about financials, managers can make better decisions about the direction of the organization.


What are challenges of afananial mananger?

A financial Manager is responsible for seeing that the financial considerations of a companies activities are taken into account when making decisions. This is distinct from the Accounting Manager who is responsible for seeing that the financial transactions are recorded accuratelly according to the law. A big compamy usually has a Finance Director but not an Accounts Director.


How is the job of a financial manager in a nonprofit organization different from that of a financial manager with a profitseeking firm?

How is the job of a financial manager in a nonprofit organization different from that of a financial manager with a profitseeking firmRead more: How_is_the_job_of_a_financial_manager_in_a_nonprofit_organization_different_from_that_of_a_financial_manager_with_a_profitseeking_firm


Modern financial manager vs traditional financial manager?

The modern financial manager uses computer technology to develop strategies. The traditional financial manager uses research and evaluation to develop strategies.


What is the task of the international financial manager?

task of the international financial manager


When was Certified Financial Manager created?

Certified Financial Manager was created in 2006.


When did Certified Financial Manager end?

Certified Financial Manager ended in 2007.