To satisfy this objective a company requires a "long term course of action" and this is where strategy fits in.
Broadly speaking, financial managers have to have decisions regarding 4 main topics within a company.
To explain this further, a proposal could have a negative impact from the Discounted Cash Flow analysis, but if it is strategically beneficial to the company this decision will be accepted by the financial managers over a decision which has a positive impact on the Discounted Cash Flow analysis but is not strategically beneficial.
For a financial manager in an organisation this will be mainly regarding the selection of assets which funds from the firm will be invested in.
Payback period with NPV (Net Present Value), IRR (internal rate of return) and DCF (Discounted Cash Flow).
For a financial managers, they have to decide the financing mix, capital structure or leverage of a firm.
Which is the use of a combination of equity, debt or hybrid securities to fund a firm's activities, or new venture.
Financial manager often uses the Theory of capital structure to determine the ratio between equity and debt which should be used in a financing round for a company.
This can be further split into: Which includes investment in receivables that is the volume of credit sales, and collection period.
This infers that it is important for management and shareholders to agree to a balanced ratio which both sides can benefit from, in the long term.