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What are the main categories of financial decisions that financial managers have to make of which non-financial managers should take cognisance motivate from a financial

  1. What are the main categories of financial decisions that financial managers have to make of which non-financial managers should take cognisance motivate from a financial corporate investment strategy perspective why each is important. (5)

  1. Without using specific values how do you think strategic investment decisions influence the Statement of Financial Position and the Statement of Comprehensive Income. (10)

  1. If one considers the Du Pont equation defined as:

ROE = Net Profit margin X Total Asset Turnover X Equity Multiplier

What are the management challenges if one wants to maximise ROE and how does a change in each of the underlying determinant variables considered influence decisions related to each of Net Profit margin; Total Asset Turnover; Equity Multiplier?

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