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Financial Engineering Financial-Engineering - Coggle Diagram

- - - - (Corporate finance)
        
        Important in business.
        
        Decisions made by financial managers
        
        Investment financial decisions.
        
        Capital budgeting.
        
        Funding Financial decisions.
        
        Capital structure.
        
        Networking capital management (operative)
        
        Financial managers.
        
        No longer fund business needs.
        
        Coordinate decisions.
        
        Marketing and accounting.
        
        Need to understand finance.
        
        Responsibilities.
        
        Maximize value of the firm.
- - - - Inflation on business decision.
      - Deregulation of financial institutions,
      - Increase in computer analysis and electronic information transfer.
      - Increased importance of global markets.
    - - Globalization of business,
        
        Improvements in transport and communication.
        
        Political clout and consumers.
        
        Cost of developing new products has increased.
        
        Multinational firms shift production.
      - Increase of technology.
      - Regulatory attitude of government,
- - - - Net cash flows; investors expect an asset to generate.
        
        ‎Value: current value of the expected cash flows, based on the return demanded by investors.
      - ‎
        
        Dividend policy.
        
        Investing policy
        
        Financing policy.
        
        Normal operations (revenues/expenses).
    - - Economic conditions.
      - Government regulations and rules.
      - Competitive environment.
    - - ‎
        
        Risk attitude/preference.
        
        Interest rates.
        
        Age/lifestyle.
        
        Income/savings.
      - Rate of return; investors require to provide their fund to the firm.
- - - - Improves the quality of life of all stakeholders for both current and future generations.
    - - System that integrates the production process so that it uses the least amount of resources.
    - - Finance is now a more technical discipline that uses quantitative models.