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A newly appointed finance manager has be...

A newly appointed finance manager has been assigned the task of procuring funds for an upcoming project . After procurement, he has to decide upon the assets in which investment is to be made.
Identify the financial decisions that he has to take.

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(i) Financing decsion it is concerned with the decisions of how much fundws are to be raised from hwich long-term source. i.e by means of shareholders funds or borrowed funds. Shareholder funds include share capital, reserves and surplus and retained earnings. whereas, borrowed funds inclued debentures, long-term loans and public deposits.
(ii) Capital budegting decsion It relates to how the firm,s funds are invested in idfferent assets, so that the firm is able to earn the highest possible returns on investment. Investement decsions can be long-term or short-term
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