Question

Q1: What’s the general financial planning process? Do you know any real-world example?

Q11: What’s the relationship between the estimated intrinsic value and market value for a company?

Answer 1

1. Financial planning is the process of evaluating and managing the financial resources available for the firm in order to efficiently use them to maximize the benefits and achieve the overall objectives of the organisation.

The general financial planning process involves six steps which can be as follows-

1. Establishment of the goal and the relationship

2. Gathering of the different data which are required for the analysis.

3. Analysis of the gathered data

4. After analysing the data one should develop a plan

5.After development of the plan one should look for implementation of the plan.

6. Monitoring the plan after implementation and finding the deviations between actual and standard and correcting them.

Real world example of a General financial planning process can be management of the fund by a couple who wants to retire early through investment into different asset class.