Decisions financial managers face DescriptionThis paper is a continuation of FINAN200. The objective of this paper is to develop an understanding of the decisions financial managers face. Towards the end of this paper students will be familiar with working capital management i.e., financial planning and short-term finance and decisions that involve financing those investments (financial leverage and capital structure policy, payout policy), while touching on related issues in short-term financial planning and management and topics in corporate finance and behavioral finance (such as international corporate finance, behavioral finance, and mergers and acquisitions). This paper also examines how managers should make investment, financing, and dividend decisions that enhance stockholders’ investment value and why management often don’t make decisions that increase shareholder value. The issues we consider will be directly applicable for those planning to work in: Corporate Finance (CFO, Treasury, and Financial Analysis), Investment Banking, Private Equity, Venture Capital understanding financial decision-making and how to communicate in the language of finance is also useful for those planning to work in strategy, operations, marketing, and consulting.
