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Flashcards in Intro to Financial Management Deck (2):

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). 

It includes:

  1. Managing the capital and financial structure of the entity;
  2. Planning, allocating, and controlling an entity's financial resources (this includes acquisition as well);
  3. 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:

  1. Concepts of cost;
  2. Time value of money and calculations;
  3. Interest rate concepts and calculations;
  4. Financial valuation and its techniques;
  5. Forecasting and its techniques.