Managing short-term cash flows involves the minimization of costs. The two major costs are carrying costs the interest and related costs incurred by overinvesting in short-term assets such as cash and shortage costs. The objective of short-term financial planning is to find an optimal trade-off between these 2 costs. In other words, the optimal amount of cash for a firm to hold depends on the opportunity cost of holding cash (cash brings interests in most western European countries, but not in France for the moment) and the uncertainty of future cash inflows and outflows (some managers want to hold permanently some cash for precautionary needs).
If your activity is highly seasonal and cyclical, the money market offers a variety of possible vehicles for parking this idle cash.
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Corporate finance
The subject: corporate finance
PART ONE: CAPITAL EXPENDITURE
The present value
Investment
decisions
Practical
problems in capital budgeting
Firms evaluation
PART TWO. BASICS OF FINANCE
The financial
markets
Options
The market
efficiency
Risk
Mergers,
Acquisitions, and Corporate Control
International
Financial Management
PART THREE FINANCING DECISIONS
Corporate
financing
Dividend policy
and capital structure
PART FOUR FINANCIAL MANAGEMENT
Financial
planning
Short-term
financial management
Courses created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.
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