Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Corporate Finance Expert

Definition: The Corporate finance is the area of finance dealing with sources of funding and capital structure of the corporations and actions that managers take to increase value of firm to the shareholders, as well as tools and the analysis used to allocate the financial resources.

The primary goal of the corporate finance is to maximize or increase the shareholder value. Although it is in the principle different from the managerial finance which studies financial management of all the firms, rather than the corporations alone, the major concepts in study of the corporate finance are applicable to financial problems of all kinds of the firms.

Investment analysis is concerned with setting of the criteria about which the value-adding projects should receive the investment funding, and whether to finance that investment with the equity or the debt capital. Working capital management is a management of company's monetary finances that deal with short-term operating balance of the current assets and the  current liabilities; focus here is on the managing cash short-term borrowing, inventories and lending (such as terms on the credit extended to customers).

The terms corporate finance and the corporate financier are also associated with the investment banking. The classic role of an investment bank is to evaluate company's financial needs and raise appropriate type of the capital that best fits those desires. Thus, the terms "corporate finance" and the  "corporate financier" may be associated with the transactions in which the capital is raised in order to develop, create, acquire or grow businesses.

IMPORTANCE OF CORPORATE FINANCE

 Research and Development: Corporate Finance is desirable for the Research and Development. Today, a company cannot survive without the continuous research and the development. The company has to go on making the changes in its old products. It must also invent the new products. If not, it will be getting automatically thrown out of market.

Motivating Employees: Manager and the employees must be continuously motivated to progress their performance. They must be given the financial incentives, such as higher salaries, bonus etc. They must also be given the non-financial incentives such as canteen facilities (eatery), transport facilities etc. All this requires the finance.

Promoting A Company: The Finance is needed for promoting a company. It is needed for preparing the Project Report, the Memorandum of Association, Prospectus, Articles of Association, etc. It is needed for purchasing the Land and Buildings, the Plant and Machinery and the other fixed assets. It is needed to purchase the raw materials. It is also needed to pay salaries, wages and the other expenses. In short, we cannot start a company without the finance.

Smooth Conduct of Business: Finance is needed for the conducting business smoothly. It is needed as the working capital. It is desirable for paying day-to-day expenses. It is needed for the sales promotion, advertising, distribution, etc. A company cannot run smoothly without the finance.

Expansion and Diversification: Expansion means to increase size of company. The Diversification means to create and sell the new products. Modern machines and the modern techniques are needed for the expansion and the diversification. Finance is needed for purchasing the modern machines and the modem technology. So, finance becomes compulsory for the expansion and diversification of a company.

OUTLINE OF THE CORPORATE FINANCE

Investment analysis: Investment analysis is the planning of value-adding, the long-term corporate financial projects relating to the investments funded through and affecting firm's capital structure. The Management must allocate firm's limited resources between the competing opportunities, which is one of most important focuses of the capital budgeting

Maximizing shareholder value: The prime goal of financial management is to maximize increase the shareholder value. Maximizing shareholder value requires the managers to be able to balance the capital funding between the investments in projects that enlarge firm's long term profitability and sustainability, along with paying excess cash in the form of dividends to the shareholders. Managers of the growth companies will use the most of firm's capital resources and the surplus cash on investments and the projects so company can continue to expand its business operations into future.

Return on investment: The Return on investment is a concept of an investment in some resource yielding an upward growth trend or the appreciation in value to investor. In purely the economic terms, ROI is used to calculate the profits gained in the comparison to capital invested. ROI is a broad method for the investment valuation, and may be employed using the different valuation approaches. One method is to compare investment value and its opportunity cost to other forms of the investments.

Growth Stock: A growth stock is a stock of a company that generates the substantial and the sustainable positive cash flow and whose revenues and the earnings are expected to increase at a quicker rate than average company within same industry. A growth company typically has some sort of the competitive advantage that allows it to fend off the competitors. The Growth stocks usually pay the smaller dividends, as company typically reinvests retained the earnings in the capital projects.

FIND THE PROFICIENT SUPPORT IN CORPORATE FINANCE AT THE WORLD'S MOST-TRUSTED PLATFORM

Mywordsolution offers you exactly you need in your Corporate Finance courses if you think that you cannot cope with all the complexities of Corporate Finance. Our team of dedicated Corporate Finance specialists, who have been worked in the Corporate Finance field for a long time, can offer UK, US, Australian, Canadian and word wide students their help in tackling what their Corporate Finance homework and assignment has to offer them. You just need to specify what kind Corporate Finance assignment help you want and what your deadlines are. Once you are done with submission of your Corporate Finance requirement, our specialists or experts will get back on the job, while at the same time promising things like:

  • Research relevant to your area  
  • The best prices   
  • Time on Delivery 
  • Plagiarism free Answers
  • 24x7 Supports
  • End Customer Satisfaction

In addition, the Mywordsolution.com facilitates you to search and find the solution for Corporate Finance questions, Corporate Finance textbooks problems. You can search the questions in Corporate Finance solution library and download the answers in just little pay of the service.

Finance,Corporate Finance


Recent Corporate Finance Questions

Strategic and financial decision-making referral

Strategic and Financial Decision-making Referral Assignment- The following assignment is based on HYPOTHETICAL scenarios related to Tesco plc. Task 1 - Tesco plc is contemplating introducing a new computer system which i ...

Ethics and financial services assignment -learning outcome

Ethics and Financial Services Assignment - Learning Outcome - Apply ethical principles and decisionmaking models in arriving at a responsible and ethical judgement in routine and complex finance decisions Communicate the ...

Questions -1 this week we discuss capital budgeting methods

Questions - 1. This week we discuss capital budgeting methods and process. Could you apply the knowledge your learn this week to make better decisions in your personal life or professional duties? Please elaborate your a ...

Assignment - credit card liabilities and fraudwhen a credit

Assignment - Credit Card Liabilities and Fraud When a credit card is lost or stolen, it can be used until its owner reports it as missing. This loss of one's credit card can result in fraud and therefore, being aware of ...

Questions -q1 global auto wants to choose the better of two

Questions - Q1. Global Auto wants to choose the better of two mutually exclusive projects for expanding the firm's production capacity. The relevant cash flows for the projects are shown in the following table. The firm' ...

Question - international foods have the following capital

Question - International Foods have the following capital structure: Book Value (sh.) Market Value(sh) Equity capital (2.5 million shares of sh. 10 par) 25,000,000 45,000,000 Preference capital (50,000 shares of sh,100 p ...

Question - develop a forecast model for sales through

Question - Develop a forecast model for sales through operating income. Create the forecast in Excel. In a Word document, describe the set of assumptions (ratios) you used, and explain how you justify them. Attachment:- ...

Assignment - npv and real option valuationproposed project

Assignment - NPV and real option valuation Proposed project: Alchemy Mines is considering an investment in the rights to a silver mine. Initial investment - The owner of the mine will sell the rights to Alchemy Mines at ...

Principles of financial investment assignment - the market

Principles of Financial Investment Assignment - "The market can solve all of society's needs." Discuss the above statement with particular reference to the financial markets. Your essay should be approximately 2,000 word ...

Question - business performanceassess how business

Question - Business Performance Assess how Business Performance is measured, financially and non-financially, in your organization* and analyze its business performance. Organization is InterContinental Hotels Group (IHG ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As