Financial managers are primarily responsible for three types of decisions that directly affect a firm’s balance sheet:
At its core, financial management concerns the acquisition, financing, and management of assets with some overall goal in mind. It is not merely accounting (which records past transactions) but rather a forward-looking discipline focused on decision-making. The three fundamental decisions that every financial manager must make are: financial management chapter 1
Why stock price? A rising stock price reflects that the firm is making sound investment, financing, and liquidity decisions that increase the intrinsic value of the company. It incorporates three key elements: Financial managers are primarily responsible for three types
is not just a vocabulary list; it is the blueprint for strategic thinking. By the end of this chapter, a student or manager should understand that finance is not about bean-counting. It is about value creation. A rising stock price reflects that the firm