Financial managers make three main decisions:
Which products or services to offer?
How to acquire the funds necessary to offer the products and services, such as using cash on hand, borrowing, or selling shares in the firm?
What to do with the cash flow generated by the firm, such as pay dividends, repurchase shares, reinvest it in the business, or hold on to it?
Which of these decisions do you think is the most important for creating value for the corporation’s owners? Why?