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Strategic Financial Management

Strategic Financial Management
University of Phoenix
Finance for Managerial Decision Making / FIN 554
Professor Greg Garay
January 17, 2006

Table of Contents
Abstract……………………………………………………………………………………………3
Strategic Financial Management…………………………………………………………………..4
Working Capital Management…………………………………………………………………….4
The Kmart Corporation Debacle…………………………………………………………………..5
Long-Term and Short-Term Strategies…………………………………………………….. 6
Financial Performance………………………………………………………………………. 7
To Merge or Not to Merge………………………………………………………………………...7
Reasoning for the Merger…………………………………………………………………….8
Pros and Cons for the Merger……………………………………………………………… 9
Morale Issues…………………………………………………………………………………9
Managing International Acquisitions…………………………………………………………….10
AOL-Time Warner Merger………………………………………………………………………10
History of AOL and Time Warner……………………………………………………………….11
Reasoning, Pros, and Cons for the Merger………………………………………………………12
Short and Long-Term Financial Strategies………………………………………………………13
Financial Performance…………………………………………………………………………...14
The Bust of a Billion Dollar Merger……………………………………………………………. 15
Risk Management………………………………………………………………………………..16
Morgan Stanley Investment Company………………………………………………………… 16
Aggressive growth fund……………………………………………………………………..17
Moderate growth fund……………………………………………………………………… 18
Conservative growth fund………………………………………………………………… 18
To Merge or Not to Merge……………………………………………………………………… 18
Financial Performance………………………………………………………………………18
Financial Strategies Post Merger…………………………………………………………………19

Abstract

Strategic Financial Management
The majorities of business entities have financial managers who supervise and manage the preparation of financial reports, direct investment activities, as well as implement cash management strategies. Every corporation must closely monitor its cash flows. It is imperative the financial manager is aware of how much cash to keep available, how much raw...