Describe two important questions that financial managers must address before making an investment decision

Q: in your own words please discuss the following statement.in investment decision making process,an…

A: An investment decision making process comprises of various steps that are followed by an investor…

Q: tify the factors you would have to keep in mind in preparing financial fore

A: Financial forecasting is very important for the growth of business and achieve the success in the…

Q: Identify two important variables to be considered when making an investment decision.

A: While Investing every investor should consider two main variables:   1) Expected rate of return 2)…

Q: Explain the relationship between net present value and internal rate of return, and show how they…

A: Relationship Between Net present Value and Internal rate of Return

Q: Why is it important for an investor to create a well-diversified investment portfolio? How should an…

A: Diversification is a methodology in which risk of the portfolio is reduced by distributing…

Q: Why does a Financial Manager need to choose which source of financing a company should use? What do…

A: The business finance sources which are available to businesses are working capital loans, retained…

Q: Which of the following is NOT considered a finance activity?     Operations management assessment…

A: A company or a firm works with the combined efforts of all the departments of a firm. The different…

Q: llustration on the importance of the role of Investment Ba

A: Step 1 An investment bank is part of a bank or financial institution that provides subcontracting…

Q: A Report a Problem Revisit Choose the best option The procedure of evaluating an investors current…

A: Answer: The procedure of evaluating investors current and future financial status using the existing…

Q: Explain how you would evaluate the expected rate of return from the investment (purchasing a…

A: Investment decisions are concerned with the most efficient use of funds in order to maximize the…

Q: Demonstrate the link between net present value and internal rate of return and how they may be used…

A: According to the question, the relationship between net present value and internal rate of return

Q: Describe its significance along with the characteristics that determine the quality of a market?

A: A financial market is a market where people buy or sell financial securities at a low transaction…

Q: 1.a) What are the issues that a finance manager considers in taking investment decision? www

A: While making investment decisions a finance managers looks at the budget , profitability of the…

Q: explain the concepts of time value of money and its importance for investment decisions

A: The time value of money (TVM) is the idea that cash now values more than the same amount in the…

Q: After deciding the financial requirement, the finance manager should concentrate on

A: Financial decisions is a function of the finance manager where they identify the financial needs of…

Q: An investment group is looking to invest some money into a company. Where should the investment…

A: Before making investment decisions it is necessary to analyse the company's performance and its…

Q: s risk considered the main consideration in any investment decision? How will you deal with risk in…

A: Risk is very important factor in investment because the rate of return depends on the risk involved…

Q: Which statement is not correct?      A. The main objective (role) of financial intermediaries is to…

A: Answer: Option C is the correct answer. Because "Financial intermediaries did not absorb the risks".

Q: tinguishes investment management from financial managemen

A: Step 1   In any organization, financial management is a critical function. It is the process of…

Q: Define investing activities.

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What is the main goal of the financial manager? How does the risk return trade-off relate to the…

A: For a given level of risk, there is a level of return. When the return from an investment rises,…

Q: Explain why Risk Management is an important role of a finance manager

A: Risk Management: Risk management involves identifying, analyzing, and responding to risk factors…

Q: How would you describe the services provided by the investment advisory firms and portfolio…

A: Investment advisory firms and portfolio management companies are the important parts of investment…

Q: Which one of these statements is correct? Accountants record sales and expenses after the related…

A: Evaluation of Investment: there are some methods of capital budgeting to evaluate the investment in…

Q: As part of his duties, if a finance manager of a company is working on the appropriate source of…

A: Financial management is the practice of collecting and managing cash flows. Cash management is vital…

Q: Which of the following best explains the role of diversification as part of an investment strategy?…

A: Diversification refers to the investment strategy that can be used by an investors so that they can…

Q: What should do as early as now,  can develop the qualities of a  financial advisory?

A: Introduction Financial Advisor You must do more than handle money to be a great financial advisor.…

Q: How judgement is important when it comes to choosing the investments to  invest in?

A: Capital investment is an irreversible process which makes it important to accept any investment or…

Q: Match the qualitative characteristics below with the following statements. 1.    Relevance 2.…

A: Financial reporting: Financial reporting is the procedure used to communicate the information…

Q: Nature of investment markets, the Primary and secondary investment markets. Also brief discussion on…

A: 1. Answer: Primary and secondary investment market: The primary market is where securities are…

Q: example

A: There are many organisation who employing an financial investment strategies to mitigate risk

Q: Which of the followings is NOT in the scope of investment planning? a. To develop a risk-free…

A: Financial planning is a term that refers to estimating a company's funding needs and determining how…

Q: Discuss the overall purpose people have for investing.

A: Long term investments are the investment or assets that are beneficial for the firm for a number of…

Q: Discuss the significance of non-financial data in assessing the success of investment centers

A: Information that isn't financial : Non-financial data refers to features of a firm that cannot be…

Q: which of the following best describes the underlying rationale for a written investment policy…

A: Investment policy statement is a document which shows all details about the investments like in…

Q: After deciding the financial requirement, the finance manager should concentrate on…

A: After the financial manager has decided upon the financial requirement of the firm and its projects…

Q: Mention the activates in finance and accounting that are important strategy implementation?

A: The operations or conducts relating to Finance and Accounting in any corporate entity or corporation…

Q: How can the financial statements provide the basis for future investment analysis?

A: Answer: Financial reports are structured accounts quantifying a firm’s financial power, efficiency,…

Q: describe the stages in the financial process and discuss the advantages of a process driving…

A: Financial Process: The term "financial processes" refers to the procedures and techniques that the…

Q: financial factors that the firm should consider in the decision making process?

A: Quality is a very important aspect in the process of manufacture as brand and goodwill is created by…

Q: Why and how investors use environmental, social and governance (ESG) information in investment…

A: Introductions : In simple words, Environmental, social, and governance (ESG) methodology is a…

Q: Which of the following is not a function of Financial Manager? a. Investment Decision b. None of…

A: The financial manager refers to the person who is responsible for the financial affairs of the…

Q: Briefly discuss CAPM from the standpoint of investors and managers.

A: The Capital Asset Pricing Model (CAPM) is the financial model which shows the relationship between…

Q: Before investing, what are the factors you should take into considerations in order that your…

A: There are various factors that shall be taken into consideration which making investment decisions…

Q: You are interested in investing in an equity fund. Which step of the investment management process…

A: Investment management style is a style or a way an investment manager manages his portfolio of…