...Financial Functions Using Microsoft Excel FV | PV | RATE | NPV | IRR | PMT | Printing Formulas | FV FV(rate,nper,pmt,pv,type) Rate is the interest rate per period. Nper is the total number of payment periods in an annuity. Pmt is the payment made each period; it cannot change over the life of the annuity. Pmt must be entered as a negative number. Pv is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero). PV must be entered as a negative number. Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0 which represents at the end of the period. If payments are due at the beginning of the period, type should be 1. PV PV(rate,nper,pmt,fv,type) Rate is the interest rate per period. For example, if you obtain an automobile loan at a 10 percent annual interest rate and make monthly payments, your interest rate per month is 10%/12, or 0.83%. You would enter 10%/12, or 0.83%, or 0.0083, into the formula as the rate. Nper is the total number of payment periods in an annuity. For example, if you get a four-year car loan and make monthly payments, your loan has 4*12 (or 48) periods. You would enter 48 into the formula for nper. Pmt is the payment made each period and cannot change over the life of the annuity. Pmt must be entered as a negative amount. Fv is the future value, or a cash balance you want to attain after the...
Words: 2368 - Pages: 10
...ORGANIZATION & CULTURE FINANCE & ACCOUNTING MARKETING MANAGING TECHNOLOGY MARKETING STRATEGY & COMPETITION HUMAN RESOURCES MARKETING ORGANIZATION & CULTURE MANAGING TECHNOLOGY FINANCE & ACCOUNTING ORGANIZATION & CULTURE MARKETING STRATEGY & COMPETITION HUMAN RESOURCES MANAGING TECHNOLOGY FINANCE & ACCOUNTING ORGANIZATION & CULTURE MARKETING STRATEGY & COMPETITION HUMAN RESOURCES MANAGING TECHNOLOGY MARKETING STRATEGY & Honing Your HUMAN RESOURCES ORGANIZATION & CULTURE FINANCE & ACCOUNTING HUMAN RESOURCES COMPETITIONCompetitive Edge Finance Function in a Global Corporation The H 108 Harvard Business Review | by Mihir A. Desai HISTORICALLY, the finance functions in large U.S. and European firms have focused on cost control, operating budgets, and internal auditing. But as corporations go global, a world of finance opens up within them, presenting new opportunities and challenges for CFOs. Rather than simply make aggregate capital-structure and dividend decisions, for example, they also have to wrestle with the capital structure and profit repatriation policies of their companies’ subsidiaries. Capital budgeting decisions and valuation must reflect not only divisional differences but also the complications introduced by currency, tax, and country risks. Incentive systems need to measure and reward managers operating in various economic and financial settings. The existence of what amounts to internal markets for capital gives global corporations a powerful mechanism...
Words: 2206 - Pages: 9
...As companies globalize, they face new financial challenges. Here, the major challenge faced by the Global CEO is giving companies a powerful mechanism for arbitrage across national financial markets as capital markets open up within them. CFO has to balance the traditional question with new questions which arises due to the globalization. By exploiting their internal capital markets, CFO can create value in 3 functions: 1. Financing the internal capital market. 2. Managing Risk Globally, 3. Global Capital Budgeting. 1. Financing the internal capital market – A CFO can significantly reduce a groups overall tax bill by borrowing disproportionately in countries with high tax rates and lending the excess cash to operations in countries with lower rates. But the global CFO needs to be aware of downside of getting strategic about financing in these ways. Saddling the mangers of subsidiaries with debt can cloud their profit performance. 2. Managing Risk Globally – The existence of an internal capital market also broadens a firms Risk management options. Instead of managing all currency exposures through the financial market, global firm can offset natural currency exposures through their worldwide operations. Given this potential for minimizing risk, it might seem perverse that many multinationals let local subsidiaries and regions manage their risks separately. Doing so, however, can obscure the performance of local units, making it harder for headquarters to assess local managers...
Words: 291 - Pages: 2
...Capella University MBA6010 – Professional Effectiveness: Strength, Impact, and Reposition Professor Pamela Solberg-Tapper Assignment u06a2 – Professional Challenge – Coaching Analysis Final Paper By Dawn Patterson October 1, 2010 I. Overview In summarizing my learning from this course about the coaching and feedback process, I learned the most about myself during the classmate phase of the coaching process. Many things were illuminated over the course of the coaching sessions with my classmates and coworker. Turns out that the concern I brought to the forefront to receive coaching and direction on was one of many symptoms related to a greater issue that wasn’t as easily identifiable as other indicators had suggested. What I believed to be a problem with managing a stressful work environment really was an issue with effective communication. The coaching process is comprised of three elements; planning, conducting the discussion(s), and evaluating. In the planning phase I developed a short-term plan to help the coachee achieve their expressed goal. The next phase of the process, conducting the discussion entailed the actual delivery of the feedback. Lastly, the evaluation phase provided an opportunity to track the progress and adoption of the prescribed approach to train and develop the coachee. The evaluation phase also created an opportunity for the coachee to share feedback with the coach on the effectiveness of the coach’s delivery...
Words: 1750 - Pages: 7
...Learnings From Article Review – Finance Function In a Global Corporation Learnings from Article Review – Finance Function in a Global Corporation As companies globalize, they face new financial challenges. Here, the major challenge faced by the Global CEO is giving companies a powerful mechanism for arbitrage across national financial markets as capital markets open up within them. CFO has to balance the traditional question with new questions which arises due to the globalization. By exploiting their internal capital markets, CFO can create value in 3 functions: 1. Financing the internal capital market. 2. Managing Risk Globally, 3. Global Capital Budgeting. 1. Financing the internal capital market – A CFO can significantly reduce a groups overall tax bill by borrowing disproportionately in countries with high tax rates and lending the excess cash to operations in countries with lower rates. But the global CFO needs to be aware of downside of getting strategic about financing in these ways. Saddling the mangers of subsidiaries with debt can cloud their profit performance. 2. Managing Risk Globally – The existence of an internal capital market also broadens a firms Risk management options. Instead of managing all currency exposures through the financial market, global firm can offset natural currency exposures through their worldwide operations. Given this potential for minimizing risk, it might seem perverse that many multinationals let local subsidiaries and regions...
Words: 257 - Pages: 2
...Learnings from Article Review – Finance Function in a Global Corporation As companies globalize, they face new financial challenges. Here, the major challenge faced by the Global CEO is giving companies a powerful mechanism for arbitrage across national financial markets as capital markets open up within them. CFO has to balance the traditional question with new questions which arises due to the globalization. By exploiting their internal capital markets, CFO can create value in 3 functions: 1. Financing the internal capital market. 2. Managing Risk Globally, 3. Global Capital Budgeting. 1. Financing the internal capital market – A CFO can significantly reduce a groups overall tax bill by borrowing disproportionately in countries with high tax rates and lending the excess cash to operations in countries with lower rates. But the global CFO needs to be aware of downside of getting strategic about financing in these ways. Saddling the mangers of subsidiaries with debt can cloud their profit performance. 2. Managing Risk Globally – The existence of an internal capital market also broadens a firms Risk management options. Instead of managing all currency exposures through the financial market, global firm can offset natural currency exposures through their worldwide operations. Given this potential for minimizing risk, it might seem perverse that many multinationals let local subsidiaries and regions manage their risks separately. Doing so, however, can obscure the performance...
Words: 395 - Pages: 2
...co-operation between finance departments and human resources (HR) departments on areas like bonus schemes, the better the organisational performance will be. The research was carried out by John Innes, University of Dundee; Reza Kouhy, Glasgow Caledonian University; Rishma Vedd, California State University, Northridge; and Takeo Yoshikawa, Yokohama National University on a CIMA grant. The project examines the relationship between HR management, management accounting and organisational performance. Six case studies covering the UK, Canada and Japan were analysed with the results tested in a series of 100 telephone interviews. Top level findings show that HR and finance teams need to work closely with one-another on HR policies to ensure better performance across the entire business. Where the tone is set at the top, with HR Directors and Finance Directors being seen to liaise on bonus schemes and benchmarking exercises, it is generally felt that a better working relationship between HR and finance can be achieved. Researcher John Innes, explains further: 'It was commonly considered that while HR can benefit from getting financial input on how to structure bonus schemes and strategies, that finance can equally benefit from working with HR to understand how viewing employees as 'assets' rather than 'costs' can lead to a net positive effect on an organisation's long-term performance.' Although the relationship between HR and the operational and executive functions of any business...
Words: 1232 - Pages: 5
...Question-1: What is finance? Ans: Finance is the life blood of every corporation. In the era of modern trade and commerce, business firm have to decide from where they will raise fund, where they will invest and how much of the profit will be distributed among the shareholders. “Finance” Came from Latin word “finis” means “dealing with the money”.finace is called the art and science of managing money. At the micro level, finance is the study of financial planning, asset management and fund raising for business and financial institutions. At the macro level, finance is the study of financial institution and financial markets and how they operate within the financial systems in both the domestic and global economics. Scholar’s view: “Finance consists of providing and utilizing the money, capital rights, credit and funds of any kind which are employed in the operation of an enterprise.” _George R Terry “Finance is concerned with the process, institutionsmarkets and instruments involved in the transfer of money among and between individuals, business and governments”. _Lawrence J Gitman From the above discussion, it can be said that finance is the process of financial planning, identification of sources of fund raising, investment of fund, protection of fund, distribution...
Words: 7921 - Pages: 32
...CHAPTER-1 INTRODUCTION FINANCE: Business concern needs finance to meet their requirements in the economic world. Any Kind of business activity depends on the finance. Hence, it is called as lifeblood of business organization. Whether the business concerns are big or small, they need finance to fulfil their business activities. In the modern world, all the activities are concerned with the economic activities and very particular to earning profit through any venture or activities. The entire business activities are directly related with making profit. (According to the economics concept of factors of production, rent given to landlord, wage given to labour, interest given to capital and profit given to shareholders or proprietors), a business concern needs finance to meet all the requirements. Hence finance may be called as capital, investment, fund etc., but each term is having different meanings and unique characters. Increasing the profit is the main aim of any kind of economic activity. MEANING OF FINANCE: Finance may be defined as the art and science of managing money. It includes financial service and financial instruments. Finance also is referred as the provision of money at the time when it is needed. Finance function is the procurement of funds and their effective utilization in business concerns. DEFINITION OF FINANCE: According to Khan and Jain, “Finance is the art and science of managing money”. Webster’s...
Words: 3387 - Pages: 14
...Starting with the End in Sight: Integrating Finance After a Merger 2 When two companies merge, integrating their Finance functions is a major imperative. Variations in financial standards and procedures can prevent the merged entity’s Finance function from effective daily operations, impacting both internal and external stakeholders. Integration of this key function is also time-sensitive: the entity’s leaders, not to mention investors, demand consolidated financial statements, earnings and projections as soon as possible. Additionally, a majority of the potential gains from a merger cannot be achieved without committed support from Finance. Many companies recognize this challenge and give substantial attention to financial integration soon after announcing the deal. However, this urgency creates its own problems. Under time pressure, finance professionals will feel rushed to combine disparate numbers and harmonize divergent processes. If they do not yet have a clear vision of the new company’s future state, they may implement manual temporary work-arounds, such as preparing manual reconciliations of customer accounts, that require incremental work effort, cost and risk to Finance. By focusing only on interim integration work and not considering the future state in parallel, many companies risk that the manual interim state will one day become the future state. Maintaining disparate and manually integrated systems limits opportunity for future standardization and cost...
Words: 3161 - Pages: 13
...THE SIERRA LEONE CHAPTER OF THEPUBLIC SECTOR MANAGEMENT TRAINING PROGRAMME (CLASS OF 2013) 1. DUGBA NGOMBU 12024487 2. MUSA SAIDU 12024474 3. SAMUEL SESAY 12024513 4. GIBRILLA JUSU 12024494 5. ANTHONY DOMAWA 12024476 6. HENRY TALUVA 12024496 7. DOROTHY ADEOLA 12024486 INTRODUCTION Sierra Leone is a constitutional republic with unicameral parliamentary system (GoSL, 2009). The President is the Head of State, the supreme executive authority of the Republic and the Commander-in-Chief of the Armed Forces of Sierra Leone. He is the Fountain of Honour and Justice and the symbol of national unity and sovereignty. The President is also the guardian of the Constitution and the guarantor of national independence and territorial integrity, and shall ensure respect for treaties and international agreements (GoSL, 1991). Under the constitution (1991), no person shall hold office as President for more than two terms of five years each whether or not the terms are consecutive. The legislature of Sierra Leone, the Parliament consists of the President, the Speaker and Members of Parliament (GoSL, 1991). There are 124 Members of Parliament, 112 of whom are elected by a universal adult suffrage to represent their constituencies. The 12 are Paramount Chief Representatives to Parliament who are voted for by their fellow PCs and the chiefdom councilors, each PC representing a provincial district. The MPs (not as in the case of the president)...
Words: 4908 - Pages: 20
...IT function At chippy's chips, IT does things such as reset passwords, look up IT problems and internet. Human Resources function: At chippy's chips, human Resources is about the teachers’ pension, cover teachers, workers pay and compensation or doctors. Administration function: At chippy's chips, Administration is to organize files open emails, send emails and write letters. Finance function At chippy's chips, finance does things such as manage money in the business, gives advice to the manager of the department to budget money. Customer service function At chippy's chips, Customer service is a series of activities design to enhance the level of customer satisfaction. chippy's chips Functional areas Human Resources function: At chase high, human Resources are about the workers’ pension, cover teachers, workers pay and compensation or doctors. IT function At Tesco’s, IT does things such as reset passwords, look up IT problems and internet. Sales function At Tesco’s, the sale department organises sales promotions and they sell products over the phone or the internet. Administration function: At Tesco’s, Administration it to organize files open emails, send emails and write letters. Finance function At Tesco’s, finance does things such as manage money in the business, gives advice to the manager of the department to budget money. Distribution centre function At Tesco’s...
Words: 251 - Pages: 2
...Financial Management equips students with the knowledge and understanding necessary to apply this knowledge to real-life business situations. In an organisation financial management is split into its two principal roles. These are the accounting function, usually under the direction of the financial controller, and the corporate finance function directed by the treasurer. Accounting is concerned with the provision and interpretation of information for economic decision making. Accounting is itself split between management accounting - the internal facing function - which services the information needs of the organisation’s management and financial accounting - the external facing, highly regulated, function - which provides information for investors, the general public, regulatory bodies etc. The corporate finance function is concerned with managing the finances of the organisation and is involved in cash management, asset allocation, capital structuring and financial risk management in areas such as interest rates, foreign currency exchange rates and commodity trading. The programme is structured so that students specialise through courses within choices including advanced corporate finance, advanced finance theory, behavioural finance and market anomalies, derivatives, investment management, public sector financial management. The MSc in Financial Management also has an academic orientation, so apart from being suitable for those who enter a business career, it is also...
Words: 271 - Pages: 2
...handled by an Executive Committee of the Board composed of three senior members for tentative action until the next Board meeting. The University Executive Body The executive body of the University is headed by the President, assisted by an Executive Vice President. Under the Executive Vice President is the Senior Vice President and Treasurer. The University President The President is the highest in the University. The functions of the position are as follows: ➢ recommend for the approval of the Board of Trustees institutional policies, plans, and programs consistent with the University's mission and thrusts; ➢ ensures the implementation of the University policies, plans and programs approved by the Board of Trustees; ➢ confers, with the authority from the Board of Trustees, academic degrees, diplomas or certificates to qualified candidates for graduation upon the recommendation of the Vice President for Academic Affairs; ➢ officially represents the University in academic, civic, social and other important functions; ➢ executes in behalf of the University, contracts, deeds, and other legal documents as authorized by the Board of Trustees; ➢ recommends to the board of trustees the appointment, promotion and termination of principal officers of the University; ➢ appoints, promotes, and...
Words: 2554 - Pages: 11
...production and marketing activities, in such a way that it can generate the sufficient returns on invested capital, with an intention to maximise the wealth of the owners. The financial manager plays the crucial role in the modern enterprise by supporting investment decision, financing decision, and also the profit distribution decision. He/she also helps the firm in balancing cash inflows and cash outflows, and in turn to maintain the liquidity position of the firm. How does the modern financial manager differ from the traditional financial manager? Does the modern financial manager's role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the today's environment; he/she takes an active role in financing, investment, distribution of profits, and liquidity decisions. In addition, he/she is also involved in the custody and safeguarding of financial and physical assets, efficient allocation of funds, etc. The role of financial manager in case of diversified firm is more complicated in comparison with a small and medium size firm. A diversified firm has several products and divisions and varied financial needs. The conflicting interests of divisional...
Words: 1368 - Pages: 6
