Corporate finance is the area of finance that deals with the financial decisions of corporations. The main goal of corporate finance is to maximize shareholder value. Corporate finance activities include the following: -Raising capital: Corporations need to raise money to finance their operations. This can be done through equity or debt financing. -Investing: Corporations need … Read more
Cash Positions: What You Need to Know What are the 3 main areas of corporate finance? The three main areas of corporate finance are capital budgeting, capital structure, and working capital management. 1. Capital budgeting is the process of planning and deciding which long-term investments a company should make. This includes decisions such as whether … Read more
Imputed value is the value that is assigned to something that is not directly observable. This can be done for a variety of reasons, such as when the actual value is not known, or when it is not possible to directly observe the thing of interest. For example, the value of a company’s brand may … Read more
What Is International Finance, and Why Is It Important? WHAT IS features of international finance? There are a few key features of international finance that are worth mentioning. First, international finance is concerned with the financial decisions that multinational corporations (MNCs) make. This includes things like capital budgeting, foreign exchange risk management, and financing decisions. … Read more
In corporate finance, demand schedules are used to understand how changes in price affect the quantity of a good or service that consumers are willing to purchase. This information is used to make pricing decisions and to understand how demand for a product may change in the future. What are the factors affecting demand? There … Read more
Shareholder value added (SVA) is a performance metric used to assess how much value a company has generated for its shareholders over a particular period of time. The metric is calculated by subtracting the company’s total equity from its current market value, and then dividing that figure by the total number of shares outstanding. This … Read more
Growth at a reasonable price (GARP) is an investing strategy that seeks to find companies with strong future prospects that are trading at a reasonable price. GARP investors believe that such companies offer the best combination of growth and value. GARP investing is based on the belief that it is possible to find companies with … Read more
A closely held corporation is a company that is not publicly traded and whose shares are not readily available for purchase by the general public. In most cases, these companies are owned by a small group of individuals, often family members or close friends. There are a number of advantages to owning shares in a … Read more
A surplus spending unit is a business or organization that spends more money than it earns. This can happen for a number of reasons, including making investments, expanding operations, or simply having higher expenses than income. Surplus spending can be a good thing if it leads to growth or increased profits, but it can also … Read more
Quick assets are current assets that can be converted into cash within a short period of time, typically within one year. The most common quick assets are cash, accounts receivable, and inventory. Quick assets are important to a company because they represent the portion of a company’s assets that can be quickly converted to cash, … Read more
