Page 10 - DBP5043

RESPONSIBILITIES OF FINANCIAL

MANAGERS

ii) Investment and financing decisions

Based on the forecasts and the plans, financial managers

will be able to do the following tasks :

 Determine sales growth rates ;

 Determine what specific assets to purchase ;

 Determine the best method of financing those

assets, whether to use debt (long term / short term)

or to use equity (common stock /preferred stock).

iii) Coordination and control

Financial manager have to interact with other

departments within the organization. This is necessary

because the decisions of other departments might affect

investment decisions. For example, the company has

decided to increase sales promotion activities (marketing

decision). This will usually result in an increase in sales.

The increase in sales would subsequently require an

increase in the production capacity that will then

influence the investment requirements.