The financial manager makes decisions about the expected cash flows of the firm, which include decisions about how much and what types of debt and equity should be used to finance the firm (capital structure decisions); what type of assets should be purchased to help generate expected cash flows (capital budgeting decisions); and what to do with net cash flows generated by the firm reinvest them in the firm or pay dividends (dividend decisions).

Discuss the complexity of the role of the financial manager reflecting upon the inter- relationship between the decisions in the areas highlighted.