Corporate finance assignment help
Sources of finance
What are the major sources of corporate finance assignment help for a company? Well, there are three major sources from which a company can draw capital.
- Debt capital: it is an important part of corporate finance assignment help In corporate finance, a company may borrow money in order to finance a new project or sustain ongoing projects or restructure an existing project. The borrowed capital may come from various sources such as bank loans, notes payable or bonds issued by the company. It is required to make regular interest payments in lieu of the bonds issued till the date of maturation when the company will pay back the entire debt amount. The company may also decide to pay back the borrowed debt in annual installments over and above the interest.
- Equity capital: Corporate finance assignment help involves help on equity capital help. A company can raise money is by selling shares of the company in the capital market. Shareholders who do invest in a company’s share do so with the hope that the market value of the share will increase thereby making the investment a profitable one. Investors prefer to buy stocks and shares of those companies which consistently give their shareholders a high rate of return. Our corporate finance assignment help can aid students to get more idea on equity capital.
- Preferred stock: Corporate finance assignment help includes finance accounting help on preferred stock. A preferred stock is an equity security which is more important than a common stock. However, it only carries a promise of dividend with no voting rights in the financial decisions of the company. Students can get more corporate finance assignment help on onlinehelpassignment.com.
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Assessment of the financial situation of a company
Our corporate finance assignment help also includes assessment of the financial situation of a company. In order to make an investment, an investor has to know everything about the company’s current financial position. Financial reporting is a method used by companies to convey its financial performance to shareholders, investors and to the market in general. All publicly listed companies must state their quarterly or annual financial statements according to the generally accepted accounting principles. These statements can be examined by independent authorities according to international accounting standards. The investors can look at the financial statements of a company and can make an informed decision about the investment prospects of that company. There are three major types of finance accounting statements:
- Statement of income which analyses the net profit for a given financial period by subtracting the expenses from the revenue earned.
- Cash flow statement which shows the inflow and outflow and cash into a company within a specific financial period and the effect they have in the equity of the shareholder. It is usually given by the formula, retained earnings = Beginning capital + Net income – dividend = retained earnings.
- Balance sheet which gives a complete view of the company’s financial state at any given point of time and is given by the expanded accounting equation:
Assets= Paid in capital + Revenue – Expenses –Dividends – treasury stock.
Students requiring corporate financeassignment help on any of these areas can refer to our separate articles on financial reporting.
Capital budgeting/Investment evaluation
Our corporate finance assignment help material also involves capital budgeting. In addition to financial statements, investors need to be alert regarding the value of the future investments of the company. Capital budgeting is the most important instrument in corporate finance to determine whether a company’s long term investments are worthwhile or not. It is also known as ‘investment appraisal’ and large corporations often use it in order to allocate resources for upcoming projects and find out values of current projects. Further the dividends paid to the shareholder’s are also determined by capital budgeting methods. For more on corporate finance assignment help,log on to onlinehelpassignment.com.
There are many formal methods which are used for capital budgeting, our finance accounting assignment help experts explain them below:
- Accounting rate of return: Accounting rate of return is the rate of return from the net income of the proposed capital investment. For more on finance accounting help, log on to onlinehelpassignment.com.
- Payback period: Payback period is the second most important method to decide upon shareholder’s dividend. It refers to the period of time that is necessary to recoup all the investments made on the project and reach a break-even point. For more on finance accounting help, log on to onlinehelpassignment.com.
- Profitability index: Profitability index is the ratio of the payback to the investors divided by the investment made. For more on finance accounting help, log on to onlinehelpassignment.com.
- Net Present value: NPV or the Net Present Value is the sum total of all the cash flow values both incoming and outgoing for each project. For more on finance accounting help, log on to onlinehelpassignment.com.
- Internal rate of return: Internal rate of return (IRR) is the discount rate often used in capital budgeting that makes the present value of all cash flows from a particular project equal to zero or in other words, IRR is that rate where the investments behind a project reaches a breakeven point. IRR is often used to rank projects of investments and the project with the highest IRR is often used first. For more onfinance accounting help, log on to onlinehelpassignment.com.
- Modified internal rate of return: Modified Internal Rate of Return (MIRR) is a modified version of IRR. One shortcoming of IRR is that it is often used to calculate the actual annual profitability of a project. However, intermediate cash flows are never taken into account. As such the actual IRR is lower than what is calculated. Hence, MIRR is used in the place of IRR. In fact most the companies now prefer to use MIRR in the place both NPV and IRR. For more on finance accounting help, contact onlinehelpassignment.com experts.
- Real options valuations: Real options analysis or real options valuation is another important method of capital budgeting. Real options are the types of options available to the investors that open up with each possible capital investment. They may be options to expand or options to cease if certain risk factors arise. They are often called ‘real’ because these options relate to tangible assets of the company including equipments and land rather than those relating to intangible assets. For more on finance accounting help, log on to onlinehelpassignment.com.
- Equivalent annuity method: Equivalent Annual Annuity (EAA) is another poplar approach to calculate the annual cash flow generated by a project as if it was an annuity (an annuity is financial product that is designed to accept funds from an individual and upon annuitization, pay out a stream of payments to the consumer). For more on finance accounting help, log on to onlinehelpassignment.com.
We have a detailed article on capital budgeting for all the students needing finance assignment help. This article would also be useful to students needing corporate financeassignment help, risk management finance assignment help and strategic finance assignment help.
Risk management and investment banking
Risk management finance is an important part of corporate finance assignment help and need not always carry a negative connotation as previously thought. Risk in corporate finance assignment help has become essential in recent years. In this final section, we look at risk management and investment banking.
Any deviation from an expected outcome (in corporate finance assignment help the outcome is the return on the investment) is called a risk. Today, finance experts believe that a little bit of risk is desirable; even necessary. For long term return, short term risks are essential. How much risk can an investor take depends on the risk tolerance of the investor which in turn is calculated on the basis of his financial position, availability of capital etc. A new discipline of ‘risk management’ has emerged which advises investors by calculating risk through various financial methods and tells them how to manage or ‘hedge’ risks. For more on corporate finance assignment help and risk management finance, log on to onlinehelpassignment.com.
Another related area of accounting assignment help is investment banking. An investment bank acts as intermediary between the security issuing company and the investing public by acting as a broker or an agent (known as an underwriter).
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