Reflection/Learning Outcomes

Classmate 1 post-Raghu

The main concept explored in managerial finance they include, ratio analysis, time value of money, review of financial statement, working capital management, cost of capital and risk analysis, among others. The concept learned to relate to financial acuity as well as managerial decision making in following ways; financial acuity is a critical concept that emphasis on making the right judgment about the financial position of the organization (Gan & Ahmad, 2016). Accurate judgment making by the organization is essential in determining financial performance and health of the organization. Financial health is critical since it determines the organization continuity as a going concern in the competitive environment. The existence of financial acuteness within the organization hence is a source of competitive edge for the organization. The managerial decision within the organization they include capital budgeting, liquidity, and dividends decision. Liquidity decision is vital in determining a firm’s ability to honor its short-term obligation. The current ratio is utilized by the organization to gauge the liquidity position of the organization in a competitive environment. Capital budgeting, on the other hand, focuses on organization investments in projects. The organization is required to invest in projects that have the potential of yielding a positive net present value for the organization (Socea, 2012). Dividend decisions, dividends are paid out of retained earnings organization is required to make accurate dividend decision to satisfy the organization shareholders and at the same time ensure that there is sufficient money for the organization to operate. The new skill acquired from the course they are diagnostic, analytical and decision-making skills. Analytical skills are essential since they will assist me in analyzing of financial statement ad providing the right decision about financial health and performance. Decision-making is essential, especially in capital budgeting. These skills will assist me in advising management on investing in various projects. Diagnostic skills these skills are essential in resolving of the financial-related problem, e.g. fraudulent transaction as well as errors (Lee, 2015). This will assist the organization to continue with its operations as a going concern in the competitive environment.

References

Gan, C., Chong, L., & Ahmad, Z. (2016). Impacts of FRS139 adoption on value relevance of financial reporting in Malaysia. Managerial Finance, 42(7), 707-721. Doi: 10.1108/mf-06-2016-0167 Lee, T. (2015). An Analysis of Retirement Financial Service Providers' Approach to Using Websites to Augment Consumer Financial Acumen. SSRN Electronic Journal. Doi: 10.2138/ssrn.2681322 Socea, A. (2013). Managerial Decision-Making and Financial Accounting Information. Procedia - Social and Behavioral Sciences, 58, 47-55. Doi: 10.1026/j.sbspro.2013.09.977

Classmate 2 post-Akhila

The evaluation of financial strategies to decide how they influence the business inside and remotely. Managerial finance thinks about how to enhance monetary systems to better the organization and where changes can be made to anticipate misfortune. This approach is a blend of fundamental corporate financing and managerial. This course manages the standards of corporate finance. It will furnish you with the dialect and the apparatuses of finance and enable you to comprehend the hypothesis and apply, in certifiable circumstances, the systems that have been created in corporate finance. We talk about the three fundamental rules that guide corporate chiefs in boosting firm esteem: (1) the venture guideline, (2) the financing rule, and (3) the profit rule.

The real points of the course incorporate the part of companies and monetary administrators, time estimation of cash, valuation, capital planning, jump rates, capital structure, and profit approach. While concentrating on the corporate setting, this course will likewise assist you with making better choices in your own budgetary issues and it will acclimate you with how monetary markets function. This course expands on the ideas of the time estimation of cash and presents applications including the valuation of bonds and stocks and utilizing net present esteem and other speculation criteria to settle on venture choices. The connection amongst hazard and return is underlined, alongside deciding the cost of capital. The motivation behind the course is toward building up the important aptitudes to be a viable budgetary director. (BusinessDirectory, n.d.)

Investigation of Managerial Finance is extremely vital in our expert life since chiefs in the firm, paying little mind to their sets of responsibilities, often need to give monetary support to the assets they must carry out their activity. Regardless of whether you are enlisting new laborers, arranging a publicizing spending plan, or redesigning the innovation utilized as a part of an assembling procedure, understanding the monetary parts of your activities will enable you to pick up the assets you should be fruitful. It is essential in our own life because many the standards in managerial finance apply there. Taking in a couple of straightforward monetary standards can enable us to deal with our own cash more successfully. Finance shows that supervisors' essential objective ought to be to expand the abundance of the association's proprietors—the investors. The most straightforward and best measure of investor riches is the association's offer cost, so directors should take activities that expansion the company's offer cost. To begin with, timing is critical. A venture that gives a lower benefit in the short run might be desirable over one that wins a higher benefit over the long haul. Second, benefits and cash flows are not indistinguishable. The benefit that a firm report is basically a gauge of how it is getting along, a gauge that is impacted by a wide range of bookkeeping decisions that organizations make when amassing their monetary reports. Cash flow is a clear measure of the cash flowing into and out of the organization. Organizations need to pay their bills with cash, not profit, so cash flow is the thing that issues most to money related directors. Third, hazard matters an awesome arrangement. A firm that acquires a low, yet solid benefit may be more important than another firm with benefits that vacillate an awesome arrangement and, in this manner, can be high or low at various circumstances. (Gitman & Zutter, 2012)

References

ACCA. (2016, May). Financial management and business Success - a guide for entrepreneurs. Retrieved from http://www.accaglobal.com: http://www.accaglobal.com/content/dam/ACCA_Global/Technical/smb/pi-financial-management-entrepreneurs.pdf

BusinessDirectory. (n.d.). managerial finance. Retrieved from http://www.businessdictionary.com/: http://www.businessdictionary.com/definition/managerial-finance.html

Gitman, L. J., & Zutter, C. J. (2012). Principles of managerial finance. Boston : Pearson Prentice Hall, ©2012.

Classmate 3 post-sowmya

Consider the content of this class as they relate to financial acuity and managerial decision making.

It is important to understand the roles of financial measures and laws that are required for the successful running of any business venture or project. Financial acuity is having a clear idea of well-structured financial management and important pieces of financial information like financial statements, cash flows, and financial ratios. This course helped me in understanding the critical factors like financial planning and control, ability to solve the various problems related to various management dilemmas. In order for the organization to be successful, each employee should be aware of what all factors contribute to revenues and profits for the business (McGarvie, 2007). Financial analysis is helpful in arriving at a decision on any project undertaken by the organization and the scope of profitability of the venture can be analyzed with the available financial information. The key financial aspects that were outlined in the course and the group project helped me in gaining sufficient knowledge on the important factors that should be considered when taking important managerial decisions.

Base on the course content, discuss new skills you acquired from this class?

Concepts discussed in the course were helpful to me in understanding the financial status of an organization or a project. I am able to gain sufficient knowledge on the basic structural elements of financial analysis like financial statements, cash flows, time value of money and security valuation under the principles of managerial finance. Advanced topics that I am able to gain the skills include financial planning, forecasting, capital budgeting decisions, and working capital management which will be helpful for myself and my team while taking managerial decisions.

How would you apply your new knowledge your current and/or future profession?

I am currently working for a financial services organization and there are numerous financial services or products that will be catered to the customers on a daily basis. I will use the skillset gained from this class in suggesting the team the important financial elements to be considered before undertaking any new project or service launch. The useful information from the financial analysis models will be presented before the team regarding the continuation of future or existing projects with sustainable cash flows. This will be helpful for the manager and the team in making an accurate decision on the project.

Reference:

McGarvie. (2007). The importance of financial acumen in staff. Retrieved from https://www.icaew.com/technical/personal-development/leadership/importance-of-financial-acumen-in-staff