HOW DO YOU ENVISAGE YOUR ROLE AS A FINANCE MANAGER? July 13, 2010
How do you envisage your persona as a direction trainer in matters attendant to dividen policy. What are the alternatives and factors that you haw study before finalizing your views on dividend policy?
Typically Financial managers oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. Managers also develop strategies and implement the long-term goals of their organization. Dividend policy is just one sphere of activity that a FM performs in an organisation.
In such a role the decision essentially involves on whether to distribute earnings to the stake holders or retain it to fund the companies expansion plans which inturn is reflected in what the senior management is envisioned as the companies financial year objective.
Actually, I don’t see myself in that role at all. I’m a rocket scientist and I don’t really have an interest in finance.
the primary consideration is whether the profits generated are required for further explasion purpose. even then, the debt equity ration needs consideration. if the debts capital is low and is available on lower interest rate, it wud be better to borrow and give the shareholders benefit of leverage in addition to distribution of dividend.