Subject: Business / Finance
QuestionNeed a paper of a minimum 1,500 words concepts of financial management the today’s economic conditions and the occurrences of restructuring.You can use the below to help guide the paper.Research management and restructuring. Use a minimum of three to support your analysis. When researching, focus on articles discuss real-world cases that exemplify essence of each required below and how they can or may have contributed a corporate.Your analysis should include a discussion of the following:The roles and of financial management.
The significance of financial performance, financial planningand, and examples of how each can be out.
Current of fixed income and stock securities and how conditions financial management.
Risk and return and its role in financial management.APA guideline required. References are required. An abstract is not required.Financial ManagementObjectivesRolesMain rules of Good Financial ManagementNever invest your money without ensuring that the assets you acquire can generate a return which is at least equal to the cost of capital
Invest your money in such a way that the assets will generate an inflow of funds before the liabilities demand an outflowSenior leaders of an organization are given various financial roles for various business units in an organization in order to have involvement of best practice in financial governance, financial management and reporting.Various roles and responsibilities are mentioned below:Profitability:Maximization of the profits and shareholder’s wealth are considered to be most important objective for any business firm.Reviewing financial positions and material changes from original budgetLiquidity:To meet financial obligations in order to ensure regular and adequate supply of funds to the concern.Treasury’s role is to do adequate planning and budgeting to point out the liquidity slack and liquidity surplus periodsCapital Budgeting Decisions:To ensure optimum funds utilization. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.Knowing how much the product is expected to cost and how much revenue it is expected to earn so that financial manager can invest the appropriate amount in the product.Capital Structure Management:Proper decision should be taken while funding expansion regarding whether to raise from lenders or to make a fresh issue of equity.Balancing priorities throughout the budget process.Responsibility for figuring out the financial projections for the businessRisk Management:It includes management of market price risk management (foreign exchange rates, interest rates, commodity prices) and credit and financial country risk management.Improving the managing of risk throughout the company’s balance sheet and providing robust advice on improving the performance of assets.Financial Control:Exercising control over financesWhile performing these roles, a financial manager is required to take different decisions (investment, financing, dividend decision, etc.).Fixed Income and Common Stock SecuritiesFixed Income SecuritiesCommon StockFixed income securities are whichever type of security apart from equity which necessitates the issuer to pay on fixed schedule and the sum of payments can be changeable.Fixed income security shareholders should get fix income on fixed schedule for example fixed deposit into banks, bonds, treasury bill and any other form of securities consisting preference shares.Fixed income securities reimburse interests and fixed sum of dividends.Fixed income securities holders will acquire the fix return even when the company has inferior or no profits.Fixed income securities are seen as they have lower risks and lower profits or returns.The fixed income securities are capable of being tax free for example treasury bill. Interest gained from the treasury bill is tax- free. The other fixed income securities return would not get a tax exclusion.Fixed income securities shareholders have a superior claim to the company’s assets and earnings.Dividends of fixed income securities are greater and the shareholders have an idea on when to expect the dividends.A fixed income security does not give the shareholder a degree of ownership.Common stocks can be explained as the ownership interest in the issuer’s corporation but this does not necessitate the issuer to pay on a fixed schedule.Common stock securities shareholders do not get fix returns at the fixed schedule.Common stock holders should get dividends after paying to the preferred shareholders and fixed income securities.Common stockholders would not acquire dividend suppose the company has inferior or no profits.Common stock securities are believed to be risky security and regarded to be of higher risk and higher the returns.The tax benefit of common stock’s dividends depends on the forms of dividends for example eligible dividends and non-eligible dividends. The dividends coming from the domestic company may be fully or up to some degree is tax -free.Common stock securities shareholders do not have a superior claim to the company’s assets and earnings.Dividends of common stock securities are not greater and the shareholders don’t have clue on when to expect the dividends.Common stock securities give the shareholder a degree of ownership.