The
difference between a performing and underperforming firm basically comes down
to the value each brings to its owners or stakeholders. It is difficult to
measure the worth of this value outside financial parameters. This is where
corporate finance comes in. Corporate
finance is an area of financial studies involving financial planning, raising,
investing and monitoring of finance to achieve organizational objectives. The
essence of this to managers is paramount. Managers are tasked with the
responsibility of ensuring they do add the value
of the firm to its owners. Corporate finance enables them to understand the firm’s financial resources and appropriate
tools required during analysis for better resource allocation process.
A quick
overview of the entire corporate finance process starts in the planning stage where we seek answers to
questions such as; what are your financial sources? How much is needed and what
is the potential profitability arising from such investments. After this,
corporate finance embarks on how to raise
capital and the appropriate sources to
adopt. The third phase involves a
decision on how to invest: Some may decide to invest in fixed assets while others may decide to invest in working assets. The final stage is the monitoring and management of the risks that
arise from the process. This is not a straight forward process for beginners.
Any corporate
finance homework help involving this process need special attention
from the experts.
One may
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finance assignment help necessity.
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