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Corporate Finace Assigment
Corporate Finace Assigment
QUESTIONS
1. Explain the meaning of corporate finance
2. Explain the role of corporate finance manager in Morden business management
QUESTION ONE
Corporate finance is the area of finance that dealing with source of funding, the
capital structure of the corporations and investment decisions, its also include tools
and analyses used to allocate the financial resources.the primary goal of the corporate
finance is to maximise or increase shareholder value through planning and
implementing management resources while balancing risk and profitability.
Corporate finance is often associated with firm’s decision to undertake capital investment
and other investment-related decisions, it deal with providing money for the business and
the source that provide them, the source provide capital to corporation to pay for structural,
improvement, expansion and other value added projects.
QUESTION TWO
The role of financial managers in Morden business management is changing in response to
technological advances that have significantly reduced the amount of time it take to get
financial informations and prepare repots, with the main responsibility of monitoring
company finances, financial managers perform data analyse more easily and advise senior
managers on profit maximisation ideas.
Some of the major functions of financial managers are as follows
Investment decisions
Morden financial managers must have knowledge on investment decisions this will help to
know much to invest in real assets and which specific projects to undertake (capital
budgeting decisions) and provide analytical techniques to aid these sorts of decision the
financial experts has to be aware of a wide variety of factor which might have some
influence on the wisdom of proceeding with a particular investment.these range from
corporate strategy and budgeting restrictions to culture and commitment of individuals
likely to be called upon to support an activity.
Treasury management
The management of cash may fall under aegis of the financial manager. Many firm has
larger of the cash which need to be managed properly to obtain a high return for
shareholders. Monitor and control of the flow of the cash coming into and going out the
organization, helping ensure the company business and investment needier met, in
organizations huge cash (tied cash) may cost organisation hence its responsibility of the
manager to keep liquid assets to cover cash flow and cost of inventory consumable
suppliers. Other areas of responsibilities might include inventory control creditors and
debtors management and issue of solvency.
Conclusion
The study Corporate finance has primary goal of maximise shareholder value and deal with
monetary decisions that the business entity make, financial managers help the management
to make financial decisions by monitor financial details to ensure that legal requirement are
meet, review company financial reports and seek way to reduce cost, prepare financial
statements business activities reports and forecasts and analyse market trends to find
opportunities for expansion or for acquiring other companies.
REFFERENCES
1 Westone, J.F, Brigham, E.F & Beslay. S; (1996) Essential of the managerial finance
(11 ed).Dryden press