Why market prices are useful to a financial manager?

The designer why a Financial carry onr is involve over is for them to be competent to dumbfound investment decisions, make financing decisions, and manage cash flow from operating activities. With that establish is clear that in parliamentary procedure to understand the approach that the manager is going to approach, is necessary to study, understand, and develop the foodstuff taking into consideration the needs of the company. If he financial manager does non study the foodstuff prices, he will not be equal to create a good sales strategy that will overturn the company a profitable product development.Discuss how the Valuation Principle helps a financial manager make decisions. First what the Valuation Principle does, is that it shows how to make the cost and benefits of a decision comparable so we can weighting them properly. This principle is the one that the Financial Manager will be able to ingestion to make a better decision of the study of the market based on the market value and the needs of the company.Describe how the Net exhibit Value is related to cost-benefit summary. The Net Present Value is the base of the cost-benefit analysis, the reason for this is that the NPV is the difference between costs and benefits, and this NVP is what determine the outcome of a cost-benefit analysis and what direction this Manager and the Company is going to take in that trade union movement in which they did the analysis. Explain how an interest rate is good a price.When we use interest rate is based on a future price, an pattern is that if you have $100 in a bank for one class at 6% interest rate, in a year you will have $106. The present value of your bullion is $100 but in a year that same $100 is worth $106, why because is just a price given to your money in the future. Describe how a bond is like a loan. In definition the bond is a security sold by governments and corporations to raise money from investors today in exchange for a promised futu re payment.So yes is like a loan make to the company or government, the reason for this is to give opportunity to make money in both sides, one the borrower is getting an opportunity to have the income to move forward with projects or products that will generate more income. In the early(a) side we have the investors that gave the money for this project to develop and have the scene to increase their investment through this bond.