Final answer:
The main objective of a finance manager is to effectively manage the financial resources of a company to maximize shareholder wealth. They meet this objective by making investment, financing, and dividend decisions.
Step-by-step explanation:
Main Objective of the Finance Manager
To meet this objective, a finance manager can use various strategies:
- Investment Decisions: The finance manager identifies profitable investment opportunities that generate returns for the company. They analyze potential projects, evaluate risks, and allocate capital to projects that offer the highest return on investment.
- Financing Decisions: The finance manager determines the optimal mix of debt and equity financing. They assess the company's capital structure, consider factors such as interest rates and risk, and raise funds through sources like bonds, loans, or equity.
- Dividend Decisions: The finance manager decides the amount of profits to distribute as dividends and the retained earnings to reinvest in the business. They consider factors like company performance, growth prospects, and shareholder expectations.
By effectively managing these decisions, the finance manager can contribute to the long-term growth and profitability of the company.