Managerial Finance Case Study

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Recommended: Risk analysis in investment decisions

Several concepts of managerial finance can be gathered with a clear understanding of the Scriptures. One of the main concepts is investment risk. In this faith integration section, the investment of risk plays in finance and how God communicates to individuals through the Scriptures and teaching. It does not matter whether you are an investor, business executive, or a financial manager, God’s word should be the foundation for making wise, practical, and beneficial decisions.
Although investments can an essential part of a business, making an investment decision involving risk can be inherent and inescapable. In order for a leader to raise the necessary resources for their corporation, he/she have to be risk-averse. In order to raise capital most companies would use the equity financing method. By using equity financing, a corporation is able to sell shares of their stock to build capital and promise to pay back the investors in the future with interest. Also a leader should consider factors such as the weighted average cost of capital (WACC), tax rate, …show more content…

Jesus is preaching to a crowd and tells them to heed his words. Jesus then tells a parable of the man who built his house upon a rock foundation versus the man who built his house on the sand. The gentleman who built his house on rock took into consideration the risks and though he could not plan for every possible scenario, he did heed the risks involved in building his house on the sand versus the rock. As the leader of his family, he made a decision to build his home in an area that may not have been as nice or desirable, but it was safe and it was on a sure foundation. Likewise, leaders need to weigh and balance the possible organizational risks. Though some of the decisions may not easy or popular, the goal is to be precautions when making decision regarding the risk

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