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Finance - Coggle Diagram
Finance
Management goal
financial
Obtain the funds and financial resources
The correct management of funds and financial resources
Allocate and apply them correctly to the productive sectors
Manage the capital of tr
The maximization of the net present value
Maximizing the value of the firm
Financial decisions
basic
cash flow
Quantity and time of investments
Quantity and time of returns
Basis for decision
investment
Maximization of profits vs. investment maximization.
Administration vs. shareholders
Analysis of the company and its trend
Analysis of the company's funding needs.
Analysis
Analysis of the investment decision
Technical Analysis is a tool that facilitates investment decision making without
need for complex knowledge or economics, mathematics or
statistics.
Fundamentals of Finance
Finance is the part of the economy that is in charge of the study of the markets of the
money and capital, of the institutions and participants that intervene in them, the
capitalization policies
recovery methods
the accountants
and those of profitability
Discounted Cash Methods
The discounted cash flow method
is based on measuring the capacity
of the company of
generate future wealth
Valuation methods based on stock market indices
The stock value is calculated as the number of shares multiplied by the price.
engineering purpose
financial
Prevents and solves critical financial problems
Seeks to optimize the use of financial resources
Plan the financial situation of the company
Select funding sources
Return-risk relationship
To determine the correct form, or optimal level of current assets, the
Management must take into account the interaction between profitability and risk.
Value of money over time
Money has the following characteristics: scarcity, transferability, durability,
portability, divisibility, easy recognition, homogeneity, utility, stability in its
value, beauty, malleability
Efficient financial markets
They are markets in which the values of all assets and titles, at any time
fully reflect all available information
The concept of interest rates: interest
Expected real interest rate
Nominal interest rate
The nominal interest rate
DETERMINANTS OF THE INTEREST RATE
The interest rate depends on two things:
The situation of preference for liquidity and
The amount of money.