Question

In: Finance

What is the main goal of a financial manager? Can you think of a company whose...

What is the main goal of a financial manager? Can you think of a company whose manager does a good job of this goal?

Solutions

Expert Solution

A financial manager makes financial planning, investment and finacing decision for a firm. The most important goal of a financial manager is discussed below:

Maximize the value of the firm and its shareholders

A financial manager is involved in the financial planning of a company by estimating the future expected revenues, expenditures of the company over a given period of time. This will help the firm to allocate its resources efficiently and effectively. Making sound investment decisions by investing in projects that will enhance the value of the company and in turn will increase the value of its shareholders is the ultimate goal of a financial manager. The main goal of the financial managers should align with the interests of its shareholders.

Amazon is one such company whose financial manager has done a great job in maximizing the firm's and its shareholder's value.


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