Latest Posts

What to Consider Before You Buy a Home Security System

What's the difference between a home alarm system and a home security system? Technically... nothing! Basically, what matters most is the level of home...

Home Security Alarm System & Burglary Prevention – Why You Must Have Quality Burglar Alarm System

A recent study by a major New York-based online review organization on home security sought to find the role and place of monitored alarm...

Better Home Safety – Low Cost Home Security Tips

Whether you're a homeowner or rent your home, your personal safety and the security of your home and your property are important to you....

What Features Are A Must Have In Antivirus Software?

Several important features are standard in all antivirus programs. And then there're features that you'll find in a few antivirus programs, and these tend...

Corporate Finance




Corporate finance deals with the decisions of finance taken by corporations along with the analysis and the tools required for making such decisions. The principle aim of corporate finance is to enhance the corporate value and, at the same time reducing the financial risks of the company. In addition to this, corporate finance also deals in getting the maximum returns on the company’s invested capital. The major concepts of corporate finance are applied to the problems of finance encountered by all types of firms.

Corporate finance discipline can be split into the short-term and the long-term techniques of decisions. Capital investments are the long-term decisions relating to the projects and the methods required to finance them. On the other hand, capital management for working is considered a short-term decision that deals with the short-term current liabilities and asset balance.

The main focus here rests on managing inventories, cash and, lending, and borrowing on a short-term basis. Corporate finance is also associated with the field of investment banking. Here, the role of the investment banker is the evaluation of the various projects coming to the bank and making proper investment decisions regarding them.

The Capital Structure:

A proper finance structure is required for achieving the set goals of corporate finance. Therefore, the management has to design a proper structure with an optimal mix of the different available finance options. Generally, the sources of finance will comprise a mix of equity as well as debt. If a project is financed through debt, it results in causing a liability to the concerned company. Hence in such cases, the flow of cash has various implications regardless of the project’s success.

The financing done by equity carries a lower risk regarding the commitments of the cash flow, but the result of this is the dilution of the earnings and the ownership. The cost involved in equity finance is also higher in the case of debt finance. Hence, it is understood that the finance done through equity offsets the risk of cash flow. The management has to have a mix of both options hence.

Related Articles : 

The Decisions of Capital Investments:

The decisions of capital investments are the long-term decisions of corporate finance related to the capital structure and the fixed assets. These decisions are based on several criteria that are interrelated. The management of corporate finance attempts to maximize the firm’s value by making investments in projects that have a positive yield. The finance options for such projects have to be done properly.




Latest Posts

What to Consider Before You Buy a Home Security System

What's the difference between a home alarm system and a home security system? Technically... nothing! Basically, what matters most is the level of home...

Home Security Alarm System & Burglary Prevention – Why You Must Have Quality Burglar Alarm System

A recent study by a major New York-based online review organization on home security sought to find the role and place of monitored alarm...

Better Home Safety – Low Cost Home Security Tips

Whether you're a homeowner or rent your home, your personal safety and the security of your home and your property are important to you....

What Features Are A Must Have In Antivirus Software?

Several important features are standard in all antivirus programs. And then there're features that you'll find in a few antivirus programs, and these tend...

Don't Miss

What It Means to Be a Modern Online Educator

Traditional college instruction is part of a well-established tradition that has remained fairly unchanged over time. Becoming an instructor in this environment has meant...

Commentary: Current Education Tramples the Mind

Not a day goes by. There is not an article in our local paper on our local Public School System. If it is not...

Enterprise Mobility Applications

Today, many corporations have large mobile workforces in sales and field service roles. Frequently, these mobile workers have little or no remote access to...

Intensification of Mobile Service Providers Network

The Indian telecommunication industry is the world's fastest emerging sector, with about 826.93 million mobile phone subscribers as of April 2011. All this could...

Coming Up Empty In Education Reform

The recent forays into public education reform from the No Child Left Behind Act, the Core Curriculum mandate, and standardized tests have all placed...

Stay in touch

To be updated with all the latest news, offers and special announcements.