... implications, and any decision which affects the
finances of a business is a corporate finance
Defined broadly, everything that a business does fits
FIN 508: Financial Management
... OBJECTIVES: After completing this course the students should be able to
1. Find the present value, or future value, of various cash flows.
2. Calculate the intrinsic value of a stock or a bond.
3. Apply the concept of capital budgeting in the evaluation of projects.
4. Use the concept of risk and re ...
A corporate bond maturing in 5 years carries a 10% coupon rate and
... b. What is the weighted average cost of capital for the firm, if the current capital
structure based on market values is the optimal capital structure?
3. (5) Roland & Company has a new management team that has developed an operating
plan to improve upon last year's ROE. The new plan would place the ...
FREE Sample Here
... positive for share value. However a new product introduces a high degree of risk that
will mitigate higher share values.
More detailed financial information for investors should increase their confidence in the
activities of the firm and lower the risk of their investment. This will be offset by the ...
... * “Residual” Subject to Other Priorities
Written exam 2008 spring
... a) When are the P/S-ratio better to use than the P/E-ratio?
When the company has has negative earnings
b) When is the relative valuation approach easiest to use?
• This approach is easiest to use when:
– There are a large number of assets comparable to the one being
– These assets are priced ...
1 - BrainMass
... constant-dollar dividend policy
residual dividend policy
constant-dollar dividend with extra policy
stable dividend policy
Investment Policy 2013
... 3. The Academy need to identify funds surplus to the immediate cash requirements
and transfer these to an account bearing a higher interest rate
4. Periodically (at least annually) review interest rates and compare with other
5. The Academy’s current policy is to only invest ...
... Profit maximization is not a well-defined financial objective, for at
least two reasons:
1. Maximize profits? Which year’s profits? A corporation may be able to
increase current profits by cutting back on outlays for maintenance or
staff training, but that may add value. Shareholders will not welc ...
Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize or increase shareholder value. Although it is in principle different from managerial finance which studies the financial management of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.Investment analysis (or capital budgeting) is concerned with the setting of criteria about which value-adding projects should receive investment funding, and whether to finance that investment with equity or debt capital. Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).The terms corporate finance and corporate financier are also associated with investment banking. The typical role of an investment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fits those needs. Thus, the terms ""corporate finance"" and ""corporate financier"" may be associated with transactions in which capital is raised in order to create, develop, grow or acquire businesses. Recent legal and regulatory developments in the U.S. will likely alter the makeup of the group of arrangers and financiers willing to arrange and provide financing for certain highly leveraged transactions.Financial management overlaps with the financial function of the Accounting profession. However, financial accounting is the reporting of historical financial information, while financial management is concerned with the allocation of capital resources to increase a firm's value to the shareholders.