Finance is an indispensable and exhilarating area of management that numerous executives want to realize or investigate in further profundity. Finance is perceived as a complex topic that is
usually avoided by some individuals. Finance is based on the principle that firms should be meritoriously managed to maximize the wealth of shareholders. Our objective is to fill the gap
between introductory accounting and finance manuals for financial and non-financial managers covering simple and advanced topics in corporate finance and managerial finance.
Finance grew out of economics and accounting. Economics developed the notion that an asset’s value is based on the future cash flows the asset will provide, and accountants provided information regarding the likely size of those cash flows. Finance then grew out of and lies between economics and accounting, so people who work in finance need knowledge of those two
fields. Also, in the modern corporation, the accounting department falls under the control of the chief financial officer (CFO).
On the other hand, we also provide statistical services or statistics, which is the science of collecting, organizing, presenting, analyzing, and interpreting data to assist in making more
effective decisions.
MSC helps its partners with:
Capital budgeting
Utilizing investment appraisal techniques to help businesses identify which projects and investment opportunities should be pursued in order to maximize the shareholders’ value.
Adequate assessment of cash inflows and cash outflows is carried out to find out whether the returns generated exceed the company’s cost of capital over a defined period of time.
A firm’s growth, and even its ability to remain competitive and to survive depends on a constant flow of ideas relating to new products, to improvements in existing products, and to ways of
operating more efficiently. Accordingly, well-managed firms go to great lengths to develop good capital budgeting proposals.
Financial statement analysis
If management is to maximize a firm’s value, it must take advantage of the firm’s strengths and correct its weaknesses. Financial statement analysis involves comparing the firm’s performance
to that of other firms in the same industry and evaluating trends in the firm’s financial position over time. It supports financial managers to identify deficiencies and take corrective actions.
The effective analysis of financial statements involves the following interrelated, sequential
steps:
- Identification of the economic characteristics of the industry in which a particular
- Identification of the strategies that the firm pursues to gain and sustain a competitive
- Assessment of the quality with regards to the firm’s financial statements
- Analysis of the firm’s current profitability and risk using information in the financial
- Preparation of forecasted financial statements
- Valuation of the firm
Feasibility study
A feasibility study supports managers to identify the probable positive and negative outcomes of a project prior to financial and time investments. Hence, it allows successful completion of
projects taking into consideration several factors such as:
- Economic factors
- Technological factors
- Scheduling factors
Risk assessment / analysis
The connection between risk and return is an important concept, and it has numerous implications for both corporate managers and investors. There is a trade-off between risk and
return. The average investor likes higher returns but dislikes risks. It follows that higher-risk investments need to offer investors higher expected returns. In other words, if the objective is higher returns, higher risks must be assumed. Hence, diversification is crucial due to the fact that by diversifying wisely, investors can dramatically reduce risk without reducing their expected returns.
Forecasting
Forecasting is used in the decision-making process to support business managers in reaching ideal conclusions about buying, selling, producing, hiring, and many other relevant actions.
Managers are always trying to reduce uncertainty and attempting to make better estimates of what will happen in the future. Accomplishing this is the main purpose of forecasting. There are
several forecasting techniques that help managers in forecasting the future such as averaging, moving averages and exponential smoothing.
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