Financial management Level 5 Unit 4 Regent college

Introduction

Financial management gives an effective and efficient management of fund which will be attaining the organization's objective as it is directly specialised function along with top management. It is integrated with proper decision making process. Future planning of a person or business ensure a cash flow which is positive which also includes maintenance and administration of financial assets. It also gives ways and its alternative that how business can finance it from shareholders fund with the combination of equity share capital, preference share capital and profits which are accumulated. All the financial decision which consists of acquisition of finance which is required from perspective of long term investments. In this report there is a brief discussion about dividend decisions i.e. particular profit which has been earned and there alternatives for retaining profit and how to distribute the margins from shareholders. The present report gives an understanding about how to identify the shares which are to issued with there theoretical ex rights price, earnings per share which has been expected, forms of issue for every rights issue price and that results with interpretation in tabular form. And significance of scrip dividend has been elaborated. Different investment appraisal techniques like Net present value, Internal rate of return, accounting rate of return and payback period with the merits and demerits has been explained.