RSM100Y1 Study Guide - Prime Rate, High-Yield Debt, Capital Structure
Document Summary
Financial managers: managers responsible for planning and overseeing the financial resources of a firm. Financial managers collect funds, pay debts, establish trade credit, obtain loans, control cash balances, and plan for future financial needs. Overall objective of financial manager is to increase a firm"s value and thus stockholders" wealth. Cash flow management: managing the pattern in which cash flows in to the firm in the form of. Financial plan: describes a firm"s strategies for reaching some future financial position; includes projections for sources and uses of funds. This policy sets standards as to which buyers are eligible for what type of credit. Credit policy also sets payments terms (i. e. credit terms of 2/10, net 30 means you get a 2% discount if you pay up in 10 day, but regular price after 10 days and must pay within 30 days) Inventory: materials and goods that the company will sell within a year.
