What is Financial Management?
Financial Management = The identification and implementation of strategies designed to maximize a firm's value, usually as reflected by the market price for the firm's stock. (Deals with both short-term and long-term issues).
- Managing the capital and financial structure of the entity;
- Planning, allocating, and controlling an entity's financial resources (this includes acquisition as well);
- Identifying and managing financial risks faced by the entity.
What are the Concepts and Tools relevant to Financial Management?
Concepts and Tools Relevant to Financial Management:
- Concepts of cost;
- Time value of money and calculations;
- Interest rate concepts and calculations;
- Financial valuation and its techniques;
- Forecasting and its techniques.