Why market prices are useful to a financial manager?

The reason why a Financial tutor is establish is for them to be able to obtain investing decisions, top financing decisions, and manage cash period of time from operating activities. With that establish is clear that in order to understand the approach that the manager is going to approach, is necessary to depicted object, understand, and maturate the grocery taking into con fontration the needs of the company. If he financial manager does not study the securities industry equipment casualtys, he go out not be able to create a good sales st placegy that will give the company a productive product development.Discuss how the Valuation Principle helps a financial manager make decisions. premier(prenominal) what the Valuation Principle does, is that it shows how to make the salute and benefits of a decision comparable so we can weight them properly. This principle is the ane that the Financial Manager will be able to use to make a better decision of the study of the market based on the market harbor and the needs of the company. trace how the Net Present rank is related to cost-benefit analysis. The Net Present pass judgment is the base of the cost-benefit analysis, the reason for this is that the NPV is the difference betwixt costs and benefits, and this NVP is what determine the outcome of a cost-benefit analysis and what direction this Manager and the go with is going to take in that purge in which they did the analysis. Explain how an pursuit rate is just a price.When we use please rate is based on a future price, an example is that if you have $ coulomb in a bank for atomic number 53 year at 6% interest rate, in a year you will have $106. The present value of your silver is $100 but in a year that same $100 is worth $106, why because is just a price given to your m geniusy in the future. Describe how a bond is like a loan. In definition the bond is a security sold by governments and corporations to vacate money from investors today i n replacement for a promised future payment.So yes is like a loan made to the company or government, the reason for this is to give opportunity to make money in both sides, one the borrower is getting an opportunity to have the income to bear forward with projects or products that will commit more income. In the other side we have the investors that gave the money for this project to develop and have the chance to increase their investment through this bond.