Category Archives: Corporate Finance

What Does It Take to Get a Corporate Finance Job

Corporate Finance

Corporate Finance

If you aspire to work in the corporate finance department of an organization, you are part of a team that is involved with collating data that form the solid basis for making capital investment decisions of a company. Some of its primary tasks include supplying figures that will support or oppose investment proposals. A corporate finance job entails management of company assets and liabilities, financial forecasting, inventory control, budgeting, and auditing.

The two key functions of corporate finance include:

Accounting – this involves recording of the day-to-day transactions of the company. Its tasks include payroll, tracking of company expenses, computation of revenue and balancing of the company’s accounting books.
Finance – this is concerned with the management of the company’s assets, liabilities, and investments. It is also responsible for the monitoring of the company’s financial performance and analyzing its revenue and expenses in order to ensure that the company’s capital is used in the most effective way possible.

The Importance of Personal Finance Management

Finance Management

Finance Management

The increase in consumerism today has made the common man or the average earner to spend more than what he used to. This resulted in more people getting in to debts and credit card scams. Many people today are suffering from huge loans that they have taken from the banks and are finding it difficult to pay them back.

This is where the key aspect of managing finance comes up. In today’s world, it is very important that you manage your personal finance very well to be successful. There are lots of benefits that can be earned if you take care of your personal finance.

The Scope of Studying Corporate Finance

Corporate Finance

Corporate Finance

People might wonder why there is a huge requirement for corporate finance graduates and there are numerous reasons for it. Any corporation will have a lot of financial issues and it has to be managed by an expert in corporate finance as the firm will have to manage the capital, improve on their assets and work on what to invest and what to eliminate.

The role of corporate finance graduates will be to assist the corporation in making the right decisions so that the organisation ends up with a maximized profit for the investments being made. Having said this universities and colleges in the United States and Canada are aimed at providing real life situations for students and the cases are thoroughly studied for the students to develop knowledge in this subject.

Capital Management Tactics in Corporate Finance

Corporate Finance

Corporate Finance

Capital is essential to carry out any sort of corporate objective. Capital can come from any source. It is mainly made up of debt and equity. Debt is generally referred to the burrowed money from financial institutes on the other hand equity is the shareholders’ money known as equity capital.
Debt holders have no share in the profit but are concerned about the return of burrowed money with interest. If the debt raises the capital rise as a result of this the rate of interest rises along with risk of capital. Now let us discuss different tactics that can help in proper management of corporate finance.

Ways to Corporate Finance Management

The corporate finance should have the right mix of debt and equity which is popularly know as capital structure. But before formulating the strategy of proper finance management it is important to identify the factors on which the business risk mainly depended.

Introduction to Corporate Finance

Corporate Finance

Corporate Finance

Corporate finance is the field of finance that deals with financial decisions of companies. Its main purpose is to analyze the different factors that can increase the market value of companies by improving profit percentage and limiting the risks and constraints involved. It is one of the major branches of finance and is also of great importance to the economy of a nation.

The main goals of corporate finance are:

1) To assess the appropriateness of investment decisions.

2) Optimize the structure of corporate balance sheets.

3) To reward providers of capital i.e. the investors or share holders.

4) Improve the financing conditions i.e. improve credit ratings so that the corporation can borrow more capital from financial institutions.