1. Capital Budgeting: This involves evaluating and selecting long-term investment projects with the goal of maximising the firm's value.
2. Capital Structure: Determining the optimal mix of debt and equity financing to minimise the firm's cost of capital and maximise its financial flexibility.
3. Working Capital Management: Ensuring efficient utilisation of short-term assets and liabilities to meet the day-to-day operational requirements of the firm and avoid potential liquidity issues.
4. Risk Management: Identifying, assessing, and mitigating financial risks, including credit risk, market risk, operational risk, and liquidity risk.
5. Dividend Policy: Determining the appropriate level and frequency of dividend payments to shareholders while considering factors like the firm's growth plans and financial stability.
6. Mergers and Acquisitions (M&A): Evaluating and executing strategies to acquire or merge with other entities to create synergies and improve overall financial performance.
7. Raising Capital: Exploring various sources of funds, such as debt, equity, and hybrid instruments, to meet the firm's funding requirements on favourable terms.
8. Financial Planning and Forecasting: Developing comprehensive financial plans and projections to anticipate and prepare for future financial needs and opportunities.
9. Compliance and Reporting: Ensuring adherence to various financial regulations and standards, as well as providing accurate and timely financial information to relevant stakeholders.
10. Wealth Management: For individuals, planning and managing personal finances to achieve financial security, growth, and retirement goals.
11. Investment Management: Building and managing investment portfolios for individuals and institutions to achieve specific financial objectives within acceptable risk parameters.
These activities are crucial in achieving financial stability and long-term growth for individuals and organisations. The role of finance is continuously evolving, encompassing a diverse range of functions that influence every aspect of financial decision-making.