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You are a manager who work at finance department of ANZ Corporation in Malaysia

Finance Aug 07, 2020

You are a manager who work at finance department of ANZ Corporation in Malaysia. You are interested to analyse the core principles of finance that influence your company’s financial figures. Explain any FIVE (5) principles of finance that give significant impacts to your decision making process in order to achieve the desired financial performance for year 2020.

Expert Solution

Five principles of finance that will give significant impact to decision making if I am a manager working in Malaysia-

A. I will be trying to consider principle of time value of money in my overall decision making process because time value of money with always having a impact over acceptance and rejection of the project and I will be trying to accommodate in overall decision-making process.

B. I will also be trying to maintain a risk reward ratio while selection of various types of projects because risk reward ratio will be helping in risk tolerance and risk management in advance.

C.I will also be trying to include the overall concept of diversification in selection of various processes because diversification can be helping in reducing the overall risk the business is exposed to.

D.I will be trying to synchronise my financial goals with the goals of the stakeholders of the organisation because ultimately the organisation is working for maximization of the stakeholders value and I will be trying to synchronise my overall objectives with the objectives of the stakeholders.

E.I will also be trying to discount that financial markets are highly efficient in discounting of the securities and I will be trying to not take unnecessary risk in order to manage the price of our security so hence we will be trying to respect the market and respect the sentiments of the market.

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