What is Corporate Finance?
SECTION I: FINANCIAL ANALYSIS. PART ONE: FUNDAMENTAL CONCEPTS IN FINANCIAL ANALYSIS. 2. CASH FLOWS. 3. EARNINGS. 4. CAPITAL EMPLOYED AND INVESTED CAPITAL. 5. WALKING THROUGH FROM EARNINGS TO CASH FLOW. 6. GETTING TO GRIPS WITH CONSOLIDATED ACCOUNTS. 7. HOW TO COPE WITH THE MOST COMPLEX POINTS IN FINANCIAL ACCOUNTS. PART TWO: FINANCIAL ANALYSIS AND FORECASTING. 8. HOW TO PERFORM A FINANCIAL ANALYSIS. 9. MARGIN ANALYSIS: STRUCTURE. 10. MARGIN ANALYSIS: RISKS. 11. WORKING CAPITAL AND CAPITAL EXPENDITURES. 12. FINANCING. 13. RETURN ON CAPITAL EMPLOYED AND RETURN ON EQUITY. 14. CONCLUSION OF FINANCIAL ANALYSIS. SECTION II: INVESTMENT ANALYSIS. PART ONE: INVESTMENT DECISION RULES. 15. THE FINANCIAL MARKETS. 16. THE TIME VALUE OF MONEY AND NET PRESENT VALUE. 17. THE INTERNAL RATE OF RETURN. 18. INCREMENTAL CASH FLOWS AND OTHER INVESTMENT CRITERIA. 19. MEASURING VALUE CREATION. 20. RISK AND INVESTMENT ANALYSIS. PART TWO: THE RISK OF SECURITIES AND THE COST OF CAPITAL. 21. RISK AND RETURN. 22.
Corporate finance is a broad term that refers to financial decisions and conditions that every company, big and small, face. Questions that corporate finance help to answer include: What type of investments should you take on? Where will be receive our long term and short term financing? Will we take on other owners or finance the loan? How will we manage everyday financial activities, such as collecting from customers and paying bills? These questions and more are addressed by every company that is a going concern. Many small business owners are not specialized in finance, but all must make financial decisions in order to succeed. The C.F.O.: In large corporations, the “owners”, or “shareholders” are often not involved in the day to day operations of the business. For this, the company hires professionals to handle all aspects of running a successful business. One of the most important roles in all companies is the Chief Financial Officer, or the CFO. This individual oversees all fina
Corporate finance is a broad term that is used to collectively identify the various financial dealings undertaken by a corporation. Generally, the term also applies to the various methods, procedures, and configurations of the financial operations employed by a given company. In most instances, corporations will have a specific financial division that is charged with the task of managing corporate finance in all aspects of financial operation. One of the core functions of responsible corporate finance is to make wise use of the financial resources available to the company. As part of this action, the financial arm of the corporation will attempt to develop an operating budget that addresses all the needs of the company in terms of expenses, as well as work with other departments to track income generated from various operations and investments currently in place. Ultimately, the goal is to ensure that the corporation is achieving the maximum benefit from available financial resources,
Every decision made in a business has financial implications, and any decision that involves the use of money is a corporate financial decision. Defined broadly, everything that a business does fits under the rubric of corporate finance. It is, in fact, unfortunate that we even call the subject corporate finance, because it suggests to many observers a focus on how large corporations make financial decisions and seems to exclude small and private businesses from its purview. A more appropriate title for this discipline would be Business Finance, because the basic principles remain the same, whether one looks at large, publicly traded firms or small, privately run businesses. All businesses have to invest their resources wisely, find the right kind and mix of financing to fund these investments, and return cash to the owners if there are not enough good investments. In this introduction, we will lay the foundation for this discussion by listing the three fundamental principles that unde
Every decision that a business makes has financial implications, and any decision which affects the finances of a business is a corporate finance decision. Defined broadly, everything that a business does fits under the rubric of corporate finance. Course Objectives To give you the capacity to understand the theory and apply, in real world situations, the techniques that have been developed in corporate finance.
