In [[Principles of Corporate Finance]] a financial manager's role is to answer two questions:
1) Which [[Real assets]] should the firm invest in?
2 How should the cash for the investment be raised?

<<image /static/files/MBI/Module%2012/financialmanager.PNG width:600>>

# The flow starts when the firm sells securities to investors to raise cash
# The cash is used to purchase real assets
# If the firm does well, the return on these assets generate cash flows that more than repay the initial investment
#
## This cash can be reinvested in the firm
## Or return to the investors who bought the securities

Three types of financial managers exists:
# The ''Treasurer'', responsible for cash management, raising capital and banking relationships, common in small firms
# The ''Controller'', responsible for preparation of financial statements, accounting and taxes, next step for larger firms
# The ''CFO'', responsible for financial policy and corporate planning, required for still larger firms
bag
finance_public
created
Sat, 04 Jun 2011 13:31:14 GMT
creator
dirkjan
modified
Sat, 04 Jun 2011 13:31:14 GMT
modifier
dirkjan
tags
M12
Term
creator
dirkjan