You are a manager who work at finance department of ANZ Corporation in Malaysia. You are...

You are a manager who work at finance department of ANZ Corporation in Malaysia. You are interested to analyse the core principles of finance that influence your company’s financial figures. Explain any FIVE (5) principles of finance that give significant impacts to your decision making process in order to achieve the desired financial performance for year 2020.

Solutions

Expert Solution

Following are the five principles of finance that influence company's financial figures are:

i)Principle of risk and return:This principle suggest that the potential return rises with an increase in risk.As a finance manager you should understand how to calculate the riskiness of an investment so that you can make a sound financial decision to achieve the desired result.

ii)Time value of money:This principle suggest that value of money decreased when time passes.So before investing or taking funds,you as a finance manager think about inflation rate of the economy and the required rate of return must be more than the inflation rate so that return can compensate for the loss incurred by the inflation.

iii)Hedging:THis principle suggest that you should take a loan from appropriate source.For example:for short term requirement we have to arrange finance from short term sources and for long term requirement we have to manage fund from long term source.

iv)Diversity:Diversity help in minimizing the risk of by creating optimum portfolio.This principle suggest that investors should invest in risk free investment and some risky investment so that final risk can be lower.

v)Profitability and liquidity:Liquidity refers to marketability of the investment.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

You are a manager who works in the finance department of ANZ Corporation in Malaysia.

You are a manager who works in the finance department of ANZ Corporation in Malaysia. You are interested to analyse the core principles of finance that influence your company’s financial figures. Explain any FIVE (5) principles of finance that give significant impacts to your decision making process in order to achieve the desired financial performance for the year 2020 (25 marks for this question).Write Any FIVE of thisPrinciple 1 The Risk -Return trade offPrinciple 2 The time value of MoneyPrinciple...

You are a manager who works in the finance department of ANZ Corporation in Malaysia. You...

(INTRODUCTION TO FINANCIAL MANAGEMENT) Question 1. You are a manager who work at finance department of...

(INTRODUCTION TO FINANCIAL MANAGEMENT) Question 1. You are a manager who work at finance department of ANZ Corporation in Malaysia. You are interested to analyse the core principles of finance that influence your company’s financial figures. Explain and provide example of any FIVE (5) principles of finance that give significant impacts to your decision making process in order to achieve the desired financial performance for year 2020. (25marks)

You work in a Finance department and are asked to analyze the economics of an existing...

You work in a Finance department and are asked to analyze the economics of an existing jet, which would be retired in four years. A new jet is purchased each time a jet is retired because the CEO travels regularly. If other managers use the existing jet, the company would save $1,000,000 each year on commercial airline flights, however, operating costs (e.g. fuel, maintenance) for the existing jet would be $700,000 greater each year, and the jet would need to...

To work in the finance department you will need to know they features of organisational policies...

To work in the finance department you will need to know they features of organisational policies and procedures relating to budgeting and forecasting. What are organisational policies and procedures, what is a budget, how does forecasting impact on budgets and from what sources will information about organisational policies and procedures come?

Your first rotation is in the Finance Department. The Finance Manager responsible for this rotation wants...

Your first rotation is in the Finance Department. The Finance Manager responsible for this rotation wants to assess your capability for controlling a department’s finances responsibly and effectively. You are given a list of journal entries coming from a bar on a cruise ship for February of this year. The descriptions and amounts are as follows: - 1st February, purchase foods from Kate’s Kitchen (new food supplier, 30 days credit) £5,001; buy wines and spirits from Harry (our long-running drinks...

Assuming that you are the head of the finance department at Chengshi Refrigerator Company (CRC), who...

Assuming that you are the head of the finance department at Chengshi Refrigerator Company (CRC), who is participating in a meeting to negotiate a strategic partnership with the German Engineering Group (GEG). What are the financial aspects to be considered, financial offer/statement?

Countries such as Malaysia, who refused to work with the IMF, were able to recover from...

Countries such as Malaysia, who refused to work with the IMF, were able to recover from the crisis as quickly as countries such as South Korea which accepted the IMF advices and conditions. Given this fact and the potential moral hazard problem the IMF creates, some question the importance of such an institution. The IMF was also criticized for taking the responsibilities that were better left to the World Bank and other regional development banks. As a result, several proposals...

You work in the billings and collection department of a small corporation. The firm offers a...

You work in the billings and collection department of a small corporation. The firm offers a 2% discount if the customer pays its bill within 15 days. Over the years, you have become quite friendly with the finance manager of one of the customers. One day he calls and asks you to change the date on your last invoice to his company to give him an extra week to pay and still be within the discount period. He offers to...

2. You work in the Finance Department for Flynn, Inc. Your firm needs to raise $6,500,000,000...

2. You work in the Finance Department for Flynn, Inc. Your firm needs to raise $6,500,000,000 ($6.50B) to finance new capital investments. Your boss is considering raising this capital using a rights offering. He has asked you to analyze the effect of such an offering on the firm’s shareholders. The firm has 750,000,000 shares outstanding. These are currently selling on the stock exchange for $32.52. Calculate the current market value of firm equity. To raise the needed $6,500,000,000 in new...

Subjects