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2) By the mid-1950s, there was an increases study in: Fixed asset management: capital budgeting. Efficient...

2) By the mid-1950s, there was an increases study in:

Fixed asset management: capital budgeting.

Efficient utilization of current assets.

Capital structure composition.

Dividend policy

How was this related to the study of finance?

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Expert Solution

Finance is a link between accounting, economics, and other related fields ofstudy.A financial manager must understand the Federal Reserve System, thecommercial banking system, and the interrelationships between various sectorsof the economy.BThe financial manager must know how to interpret and use financial statementsin assessing the firm’s performance and allocating the firm’s financial resourcesto generate the best return possible in the long run.C.The demand for financial management skills exists in many sectors of oursociety including corporate management, financial institutions, and consulting..Evolution of the Field of FinanceA.The field of finance is closely tied to economics and accounting but achievedrecognition as a separate field of study in response to the mergers, acquisitionsand growth of corporations in the early 1900s.B.As a result of the Great Depression, emphasis shifted from raising capital, tocapital preservation, maintenance of liquidity, and increased governmentintervention in the financial aspects of businesses.C.By the mid-1950s the field of finance had become more decision oriented withan emphasis on the analysis of resource utilization within the firm. Thisdecision-making focus was manifested in the increased study of:1.Fixed asset management:capital budgeting.2.Efficient utilization of current assets.3.Capital structure composition.

ekkarill92 answered 1 year ago
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