The Role of Financial Management in Relation to the Case Company, Assessment Example

Discuss the role of financial management in relation to the case company.

Financial management allows a definite sense of what is directed to be the most considerable process or option of what is meant by managing financial assets. In the case considered herein, the company strongly needs the application of the primary principles of financial management to be considered in relation to how they handle the most effective option of improvement that could help the organization in managing their financial assets.

Could a potential agency problem exist in the company? Explain how potentially the agency problem would impact the company’s financial goals?

The controversy that surrounds the organization and the operation of the business specifically impacts the overall condition of the business’ reputation in the market. Relatively, it could be realized that somehow, financial assets ought to be directed accordingly to pacify the situation, thus making a definite insistence on how the organization itself would be developed accordingly. The financial goal of the business ought to be in the front line and the financial assets that are within the property-line of the organization ought to be used towards the most considerable aspects by which the controversies could be managed and certain changes could be applied in order to make the most out of what the business makes at present.

Identify the key stakeholders in the case and discuss the related ethical considerations and the impact of the stakeholder demands on the financial goals of the company.

The primary consumers of the organization, the public which it serves, ought to be protected well. Hence, their values ought to be given specific attention to. Ethical measures concerning the health of the public ought to be seriously considered especially in terms of determining the course of development that the public ought to give attention to. Given that the company serves the aspect of  healthcare development that public embraces, it is important that a particular adjustment in the budget ought to be given way, especially when it comes to determining what options of operations are most capable of providing the organization with the capacity to reach the goals that they have established for themselves.

Discuss the finance environment of Happy Valley. Your discussion must include financial institutions, financial markets, regulations and economic factors.

The Happy Valley’s circle of business connection involves a definite sense of concentration on how business supporters’ act in order to make sure that the organization operates well while protecting the values of their stakeholders in par with the goals that they hope to reach out to. The overall operation of the business would best provide a more definite sense of how Happy Valley provides for the definite sense of controlling how financial markets actually identify well with the ideals of economic development that goes along with the organization.

In relation to the proposed investment in a new concentration plant in Christchurch:

• Determine the cost initial investment, net operating cash flows on a yearly base and the terminal cash flow

[$5,000,000+$1,000,000+$600,000= $6,600,000]=the overall capital for the development of the business is one that best impacts the consideration on how changes are to occur.  This rate of investment is considered necessary for the overall condition by which the business is supposed to develop at present and how it should arise from the controversies it ought to grow from.

Evaluate the proposed investment using the Payback, NPV (Net Present Value) and IRR (Internal Rate of Return) Techniques

The proposed investment is expected to bring out a better sense of what assets are available for the business. In this case, the amount of $6,600,000 is seen to create a better sense of insistence of how the development of the organization ought to take flight especially for the sake of clearing off the name of the business in the public. Practically, it could be realized that the amount of the financial assets available for use for the organization is supposed to bring about a more definite option of earning profit from the operations and the production conditions that the organization depends upon.

Provide recommendations on the basis of the evaluation in part b above.

The basis of the evaluation on the possible source of earning for the business is somewhat dependent on how the past and the present performance of the organization is about; especially in determining the most consistent process by which the assets of the organization is used accordingly. The capacity of the business to survive the most consistent process by which competition arises in the market within the industry is one that basically attests to the fact that the operations of the organization is able to create a more definite form of insistence on how its growth is supposed to take forth in order to make a distinct sense of improvement for the whole organization.

On the basis of the company’s 2014 monthly cash budget, briefly explain whether the company has enough funds to invest in the proposed concentration in Christchurch. Discuss other financing options to fund the investment.

Basing on the performance of the business in 2014, the monthly rate of profit by the organization proves that it has the capacity to grow further. The cash budget allotted for the development procedure that is concentrated in determining the operations on Christchurch is expected to support the whole operation, especially in determining the overall growth that the organization hopes to embrace.

The financing of the overall development of the organization is expected to be derived from the collaborative operation by which modern businesses are guided into embracing new operations that are able to make a mark on how the stakeholders see the real value of the organization as a major provider of one of their most specific needs.

With reference to the company’s 2014 monthly cash budget, comment on the working capital management of the company and suggest possible improvements.

The working capital of the business at present creates a more definite insistence on how the overall assets of the organization dedicated towards the growth of the business is more distinct on how modern business affects the overall reputation of the organization. Practically, the noticeable insistence on how growth is a definite form of improvement is somewhat distinct sense on how capital management is directed accordingly in order to make the changes necessary for the sake of fixing the past problems and making sure that the future is able to support the growth that the business hopes to embrace.