| Corporate finance |
 | | Working capital management
cash conversion cycle
Return on capital
Economic value added
Just In Time
Economic order quantity
Discounts and allowances
Factoring (trade)
Image File history File links Download high resolution version (1031x740, 688 KB)Midtown Manhattan looking North from the Empire State Building, 2005. ...
Cash conversion cycle, also known as asset conversion cycle, net operating cycle or just cash cycle, is a ratio used in the financial analysis of a business. ...
Return on capital, also known as Return On Invested Capital (ROIC) is defined as NOPLAT / Invested Capital usually expressed as a percentage. ...
Economic Value Added (EVA) is often defined as the value of an activity that is left over after subtracting from it the cost of executing that activity and the cost of having lost the opportunity of investing consumed resources in an alternative activity. ...
See also Just-in-time for the compiler system in computing. ...
Economic Order Quantity (also known as the Wilson EOQ Model or simply the EOQ Model) is a model that defines the optimal quantity to order that minimizes total variable costs required to order and hold inventory. ...
Discounts and allowances are modifications to the basic price. ...
This article is about the financial term. ...
| | Capital budgeting
Capital investment decisions
The investment decision
The financing decision
Capital investment decisions
The process of determining which potential long-term projects are worth undertaking, by comparing their expected discounted cash flows with their internal rates of return. ...
Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions. ...
Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions. ...
Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions. ...
Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions. ...
| | Sections
Managerial finance
Management accounting
Mergers and acquisitions
Balance sheet analysis
Business plan
Corporate action
Managerial Finance is that branch of finance that provide tools for a companys financial managers. ...
Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis in making informed business decisions that would allow them to be better equipped in their management and control functions. ...
Merger redirects here. ...
This page is a candidate for speedy deletion. ...
A business plan is a summary of how a business or entrepreneur intends to organize an entrepreneurial endeavor and implement activities necessary and sufficient for the venture to succeed. ...
A corporate action is an event taken by a public company that has a direct financial impact on of its shareholders. ...
| | Finance series
Financial markets
Financial market participants
Corporate finance
Personal finance
Public finance
Banks and Banking
Financial regulation
Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ...
In finance, financial markets facilitate: The raising of capital (in the capital markets); The transfer of risk (in the derivatives markets); and International trade (in the currency markets). ...
There are two basic financial market participant catagories, Investor vs. ...
Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. ...
Public finance (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government. ...
Banks is a surname, and may refer to: Aidan Banks, bass guitarist Alan Banks, fictional character from Peter Robinson Ant Banks, rapper Antonio Banks, American wrestler Bill Banks, wrestling worker Brad Banks, American football player Briana Banks, American porn actress Carl Banks, American football player Carli Banks, American model Chip...
Financial supervision is government supervision of financial institutions by regulators. ...
| | Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analysis used to make these decisions. The primary goal of Corporate finance is to enhance corporate value, without taking excessive financial risks. Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ...
Corporate redirects here. ...
In finance, valuation is the process of estimating the market value of a financial asset or liability. ...
This article is about the concept of risk. ...
The discipline may be divided among long-term and short-term decisions and techniques. Capital investment decisions comprise the long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders. Short-term corporate finance decisions are called working capital management and deal with the balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (e.g., the credit terms extended to customers). In economics, the period of time required for economic agents to reallocate resources, and generally reestablish equilibrium. ...
In Economics, short-run refers to the decision-making time frame of a firm in which at least one factor of production may be varied. ...
Ownership equity, commonly known simply as equity, also risk or liable capital, is a financial term for the difference between a companys assets and liabilities -- that is, the value that accrues to the owners (sole proprietor, partners, or shareholders). ...
For other uses, see Debt (disambiguation). ...
A dividend is the distribution of profits to a companys shareholders. ...
In business and accounting an asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together, e. ...
In the most general sense, a liability is anything that is a hinderance, or puts one at a disadvantage. ...
The time frames, and the goal of the discipline, are inter-related: value is enhanced when return on capital, a function of working capital management, exceeds cost of capital, a function of previous capital investment decisions. Return on capital, also known as Return On Invested Capital (ROIC) is defined as NOPLAT / Invested Capital usually expressed as a percentage. ...
The cost of capital for a firm is a weighted sum of the cost of equity and the cost of debt (see the financing decision). ...
Corporate finance is closely related to managerial finance, which is slightly broader in scope, describing the financial techniques available to all forms of business enterprise, corporate or not. Managerial Finance is that branch of finance that provide tools for a companys financial managers. ...
Capital investment decisions - The framework for this section is based on Prof. Aswath Damodaran of NYU’s Stern School of Business.
Longer term Corporate finance decisions - generally relating to fixed assets and capital structure - are referred to as Capital investment decisions. The decision here will be based on several inter-related criteria. In general, management must "maximize the value of the firm" by investing in projects which are NPV positive, when valued using an appropriate discount rate; these projects must also be financed appropriately. If no such opportunities exist, maximizing shareholder value dictates that management return excess cash to shareholders. Capital investment decisions thus comprise an investment decision, a financing decision, and a dividend decision. Aswath Damodaran is Professor of Finance at the Stern School of Business at New York University, where he teaches corporate finance and equity valuation. ...
New York University (NYU) is a major research university in New York City. ...
The Leonard N. Stern School of Business is New York Universitys (NYU) business school. ...
Fixed asset is an accountancy term for assets and property which cannot easily be converted into cash. ...
The Capital Structure of a corporation is the way in which that entity finances itself -- by some combination of equity sales, equity options, bonds, and loans. ...
Net present value (NPV) is a standard method for financial evaluation of long-term projects. ...
The investment decision -
Management must allocate limited resources between competing opportunities ("projects") in a process known as capital budgeting. Making this capital allocation decision requires estimating the value of each opportunity or project: a function of the size, timing and predictability of future cash flows. The process of determining which potential long-term projects are worth undertaking, by comparing their expected discounted cash flows with their internal rates of return. ...
The process of determining which potential long-term projects are worth undertaking, by comparing their expected discounted cash flows with their internal rates of return. ...
Project valuation In general, each project's value will be estimated using a discounted cash flow (DCF) valuation, and the opportunity with the highest value, as measured by the resultant net present value (NPV) will be selected (see Fisher separation theorem). This requires estimating the size and timing of all of the incremental cash flows resulting from the project. These future cash flows are then discounted to determine their present value (see Time value of money). These present values are then summed, and this sum is the NPV. In finance, the discounted cash flow (or DCF) approach describes a method to value a project or an entire company using the concepts of the time value of money. ...
Net present value (NPV) is a standard method for financial evaluation of long-term projects. ...
The Fisher separation theorem in economics asserts that the objective of a firm will be the maximization of its present value, regardless of the preferences of its owners. ...
In finance, discounting is the process of finding the current value of an amount of cash at some future date, and along with compounding cash from the basis of time value of money calculations. ...
The present value of a future cash flow is the nominal amount of money to change hands at some future date, discounted to account for the time value of money. ...
The time value of money (TVM) is a way of calculating the value of a sum of money, at any time in the present or future. ...
Net present value is a form of calculating discounted cash flow. ...
The NPV is greatly influenced by the discount rate. Thus selecting the proper discount rate - the project "hurdle rate" - is critical to making the right decision. The hurdle rate is the minimum acceptable return on an investment - i.e. the project appropriate discount rate. The hurdle rate should reflect the riskiness of the investment, typically measured by volatility of cash flows, and must take into account the financing mix. Managers use models such as the CAPM or the APT to estimate a discount rate appropriate for a particular project, and use the weighted average cost of capital (WACC) to reflect the financing mix selected. (A common error in choosing a discount rate for a project is to apply a WACC that applies to the entire firm. Such an approach may not be appropriate where the risk of a particular project differs markedly from that of the firm's existing portfolio of assets.) Net present value is a form of calculating discounted cash flow. ...
Discount rate as used in finance and economics is distinct from the discount rate described below; please refer to discounting and discounts. ...
In finance, the return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. ...
An estimation of the CAPM and the Security Market Line (purple) for the Dow Jones Industrial Average over the last 3 years for monthly data. ...
Volatility most frequently refers to the standard deviation of the change in value of a financial instrument with a specific time horizon. ...
An estimation of the CAPM and the Security Market Line (purple) for the Dow Jones Industrial Average over the last 3 years for monthly data. ...
Arbitrage pricing theory (APT), in Finance, is a general theory of asset pricing, that has become influential in the pricing of shares. ...
The weighted average cost of capital (WACC) is used in finance to measure a firms cost of capital. ...
In conjunction with NPV, there are several other measures used as (secondary) selection criteria in corporate finance. These are visible from the DCF and include payback, IRR, Modified IRR, equivalent annuity, capital efficiency, and ROI. Net present value is a form of calculating discounted cash flow. ...
Decision making is the cognitive process of selecting a course of action from among multiple alternatives. ...
The internal rate of return (IRR) is defined as the discount rate that gives a net present value (NPV) of zero. ...
Modified Internal Rate of Return (MIRR) is a financial measure used to determine the attractiveness of an investment. ...
Equivalent Annual Cost (EAC) is the cost per year of owning an asset over its entire lifespan. ...
In finance, the return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. ...
- See also: list of valuation topics, stock valuation, fundamental analysis
The following example shows a portfolio of 7 investment options (projects), but the organization has only $10,000,000 available for the total investment. The calculation uses discounted payoffs (PV: Present values) in a 4 years projection. Bold lines mark the best selection 1, 3, 6 and ,7 which will cost $7,740,000 and create a payoff of 2,710,000. All other combinations would either exceed the budget or yield a lower payoff: What follows is a list of over 250 Wikipedia articles on finance topics. ...
It has been suggested that this article or section be merged into Fundamental analysis. ...
Fundamental analysis of a business involves analysing its financial statements and health, its mangement and competitive advantages, and its competitors and markets. ...
Valuing flexibility In many cases, for example R&D projects, a project may open (or close) paths of action to the company, but this reality will not typically be captured in a strict NPV approach. Management will therefore (sometimes) employ tools which place an explicit value on these options. So, whereas in a DCF valuation the most likely or average or scenario specific cash flows are discounted, here the “flexibile and staged nature” of the investment is modelled, and hence "all" potential payoffs are considered. The difference between the two valuations is the "option value" inherent in the project. The phrase research and development (also R and D or R&D) has a special commercial significance apart from its conventional coupling of research and technological development. ...
In probability theory the expected value (or mathematical expectation) of a random variable is the sum of the probability of each possible outcome of the experiment multiplied by its payoff (value). Thus, it represents the average amount one expects as the outcome of the random trial when identical odds are...
In mathematics, an average or central tendency of a set (list) of data refers to a measure of the middle of the data set. ...
To meet Wikipedias quality standards, this article or section may require cleanup. ...
A mathematical model is an abstract model that uses mathematical language to describe the behaviour of a system. ...
In finance, moneyness is a measure of the degree to which a derivative security is likely to have positive monetary value at its expiration. ...
The two most common tools are Decision Tree Analysis (DTA) and Real options. In decision theory, a decision tree is a graph of decisions and their possible consequences, (including resource costs and risks) used to create a plan to reach a goal. ...
A real option is the right, but not the obligation, to undertake some business decision, typically the option to make a capital investment. ...
- The DTA approach attempts to capture flexibility by incorporating likely events and consequent management decisions into the valuation. In the decision tree, each management decision in response to an "event" generates a "branch" or "path" which the company could follow. (For example, management will only proceed with stage 2 of the project given that stage 1 was successful; stage 3, in turn, depends on stage 2. In a DCF model, on the other hand, there is no "branching" - each scenario must be modelled separately.) The highest value path (probability weighted) is regarded as representative of project value.
In probability theory, an event is a set of outcomes (a subset of the sample space) to which a probability is assigned. ...
Decision making is the cognitive process of selecting a course of action from among multiple alternatives. ...
In decision theory, a decision tree is a graph of decisions and their possible consequences, (including resource costs and risks) used to create a plan to reach a goal. ...
Probability is the extent to which something is likely to happen or be the case[1]. Probability theory is used extensively in areas such as statistics, mathematics, science, philosophy to draw conclusions about the likelihood of potential events and the underlying mechanics of complex systems. ...
A real option is the right, but not the obligation, to undertake some business decision, typically the option to make a capital investment. ...
What follows is a list of over 250 Wikipedia articles on finance topics. ...
In general, the economic value of something is how much a product or service is worth to someone relative to other things (often measured in money). ...
In finance, an underlying is an investment from which a derivative security is derived. ...
Economic geology is concerned with earth materials that can be utilized for economic and/or industrial purposes. ...
This article is about mineral extraction. ...
General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ...
Mineral rights, mining rights, oil rights or drilling rights, are the rights to remove minerals, oil, or sometimes water, that may be contained in and under some land. ...
Iron ore (Banded iron formation) Manganese ore Lead ore Gold ore An ore is a volume of rock containing components or minerals in a mode of occurrence which renders it valuable for mining. ...
In finance, an option is a contract whereby one party (the holder or buyer) has the right but not the obligation to exercise a feature of the contract (the option) on or before a future date (the exercise date or expiry). ...
A call option is a financial contract between two parties, the buyer and the seller of this type of option. ...
A put option (sometimes simply called a put) is a financial contract between two parties, the buyer and the seller of the option. ...
In finance, the binomial options model provides a generalisable numerical method for the valuation of options. ...
The Black-Scholes model, often simply called Black-Scholes, is a model of the varying price over time of financial instruments, and in particular stocks. ...
What follows is a list of over 250 Wikipedia articles on finance topics. ...
The financing decision Achieving the goals of corporate finance requires that any corporate investment be financed appropriately. As above, since both hurdle rate and cash flows (and hence the riskiness of the firm) will be affected, the financing mix can impact the valuation. Management must therefore identify the "optimal mix" of financing – the capital structure that results in maximum value. (See Balance sheet, WACC, Fisher separation theorem; but, see also the Modigliani-Miller theorem.) In formal bookkeeping and accounting, a balance sheet is a statement of the book value of a business or other organization or person at a particular date, at the end of a period such as a fiscal year, as distinct from an income statement, also known as a profit and...
The weighted average cost of capital (WACC) is used in finance to measure a firms cost of capital. ...
The Fisher separation theorem in economics asserts that the objective of a firm will be the maximization of its present value, regardless of the preferences of its owners. ...
The Modigliani-Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. ...
The sources of financing will, generically, comprise some combination of debt and equity. Financing a project through debt results in a liability that must be serviced - and hence there are cash flow implications regardless of the project's success. Equity financing is less risky in the sense of cash flow commitments, but results in a dilution of ownership and earnings. The cost of equity is also typically higher than the cost of debt (see CAPM and WACC), and so equity financing may result in an increased hurdle rate which may offset any reduction in cash flow risk. In finance, a bond is a debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed maturity. ...
Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. ...
In the most general sense, a liability is anything that is a hindrance, or puts individuals at a disadvantage. ...
An estimation of the CAPM and the Security Market Line (purple) for the Dow Jones Industrial Average over the last 3 years for monthly data. ...
The weighted average cost of capital (WACC) is used in finance to measure a firms cost of capital. ...
Management must also attempt to match the financing mix to the asset being financed as closely as possible, in terms of both timing and cash flows. In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ...
The dividend decision -
In general, management must decide whether to invest in additional projects, reinvest in existing operations, or return free cash as dividends to shareholders. The dividend is calculated mainly on the basis of the company's unappropriated profit and its business prospects for the coming year. If there are no NPV positive opportunities, i.e. where returns exceed the hurdle rate, then management must return excess cash to investors - these free cash flows comprise cash remaining after all business expenses have been met. (This is the general case, however there are exceptions. For example, investors in a "Growth stock", expect that the company will, almost by definition, retain earnings so as to fund growth internally. In other cases, even though an opportunity is currently NPV negative, management may consider “investment flexibility” / potential payoffs and decide to retain cash flows; see above and Real options.) The Dividend Decision, in Corporate finance, is a decision made by the directors of a company. ...
// This article is about corporate dividends. ...
A shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. ...
Profit, from Latin meaning to make progress, is defined in two different ways. ...
In finance, the return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. ...
Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. ...
In finance, cash flow refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project. ...
Growth Stocks in finance, are stocks that appreciate in value and yield a high return on equity (ROE). ...
A real option is the right, but not the obligation, to undertake some business decision, typically the option to make a capital investment. ...
Management must also decide on the form of the distribution, generally as cash dividends or via a share buyback. There are various considerations: where shareholders pay tax on dividends, companies may elect to retain earnings, or to perform a stock buyback, in both cases increasing the value of shares outstanding; some companies will pay "dividends" from stock rather than in cash. (See Corporate action.) Today it is generally accepted that dividend policy is value neutral (see Modigliani-Miller theorem). // This article is about corporate dividends. ...
In the United Kingdom, treasury stocks refer to government bonds or gilts. ...
A dividend tax is an income tax on money paid to the owners of a company through dividend payments. ...
In the United Kingdom, treasury stocks refer to government bonds or gilts. ...
A corporate action is an event taken by a public company that has a direct financial impact on of its shareholders. ...
The Modigliani-Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. ...
Working capital management Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of Working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses. Working capital is a valuation metric that is calculated as current assets minus current liabilities. ...
In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ...
In accounting, current liabilities are considered liabilities of the business that are due within the fiscal year. ...
Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. ...
Decision criteria By definition, Working capital management entails short term decisions - generally, relating to the next one year period - which are "reversible". These decisions are therefore not taken on the same basis as Capital Investment Decisions (NPV or related, as above) rather they will be based on cash flows and / or profitability. - One measure of cash flow is provided by the cash conversion cycle - the net number of days from the outlay of cash for raw material to receiving payment from the customer. As a management tool, this metric makes explicit the inter-relatedness of decisions relating to inventories, accounts receivable and payable, and cash. Because this number effectively corresponds to the time that the firm's cash is tied up in operations and unavailable for other activities, management generally aims at a low net count.
- In this context, the most useful measure of profitability is Return on capital (ROC). The result is shown as a percentage, determined by dividing relevant income for the 12 months by capital employed; Return on equity (ROE) shows this result for the firm's shareholders. Firm value is enhanced when, and if, the return on capital, which results from working capital management, exceeds the cost of capital, which results from capital investment decisions as above. ROC measures are therefore useful as a management tool, in that they link short-term policy with long-term decision making. See Economic value added (EVA).
Cash conversion cycle, also known as asset conversion cycle, net operating cycle or just cash cycle, is a ratio used in the financial analysis of a business. ...
Look up material in Wiktionary, the free dictionary. ...
Return on capital, also known as Return On Invested Capital (ROIC) is defined as NOPLAT / Invested Capital usually expressed as a percentage. ...
Return on Equity (ROE, Return on average common equity) measures the rate of return on the ownership interest (shareholders equity) of the common stock owners. ...
The cost of capital for a firm is a weighted sum of the cost of equity and the cost of debt (see the financing decision). ...
Economic Value Added (EVA) is often defined as the value of an activity that is left over after subtracting from it the cost of executing that activity and the cost of having lost the opportunity of investing consumed resources in an alternative activity. ...
Management of working capital Guided by the above criteria, management will use a combination of policies and techniques for the management of working capital. These policies aim at managing the current assets (generally cash and cash equivalents, inventories and debtors) and the short term financing, such that cash flows and returns are acceptable. In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ...
Cash usually refers to money in the form of liquid currency, such as banknotes or coins. ...
Cash and cash equivalents are the most liquid asset found within the asset portion of a companys balance sheet. ...
In business management, inventory consists of a list of goods and materials held available in stock. ...
In economics a debtor (or a borrower) owes money to a creditor. ...
- Cash management. Identify the cash balance which allows for the business to meet day to day expenses, but reduces cash holding costs.
- Debtors management. Identify the appropriate credit policy, i.e. credit terms which will attract customers, such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital (or vice versa); see Discounts and allowances.
- Short term financing. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank loan (or overdraft), or to "convert debtors to cash" through "factoring".
In United States banking, cash management, or treasury management is a marketing term for certain services offered primarily to larger business customers. ...
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. ...
See also Just-in-time for the compiler system in computing. ...
Economic Order Quantity (also known as the Wilson EOQ Model or simply the EOQ Model) is a model that defines the optimal quantity to order that minimizes total variable costs required to order and hold inventory. ...
Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ...
This page lists direct English translations of common Latin phrases, such as veni vidi vici and et cetera. ...
Discounts and allowances are modifications to the basic price. ...
A loan is a type of debt. ...
This article is about the financial term. ...
Financial risk management -
Risk management is the process of measuring risk and then developing and implementing strategies to manage that risk. Financial risk management focuses on risks that can be managed ("hedged") using traded financial instruments (typically changes in commodity prices , interest rates, foreign exchange rates and stock prices). Financial risk management will also play an important role in cash management. Financial risk management is the practice of creating value in a firm by using financial instruments to manage exposure to risk. ...
Risk management is the process of measuring, or assessing, risk and developing strategies to manage it. ...
For other uses, see Risk (disambiguation). ...
Financial risk management is the practice of creating value in a firm by using financial instruments to manage exposure to risk. ...
In finance, a hedge is an investment that is taken out specifically to reduce or cancel out the risk in another investment. ...
Financial instruments package financial capital in readily tradeable forms - they do not exist outside the context of the financial markets. ...
Commodity is a term with distinct meanings in both business and in Marxian political economy. ...
An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. ...
In finance, the exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. ...
It has been suggested that shareholder be merged into this article or section. ...
Cash usually refers to money in the form of liquid currency, such as banknotes or coins. ...
This area is related to corporate finance in two ways. Firstly, firm exposure to business risk is a direct result of previous Investment and Financing decisions. Secondly, both disciplines share the goal of creating, or enhancing, firm value. All large corporations have risk management teams, and small firms practice informal, if not formal, risk management. It has been suggested that The Firm be merged into this article or section. ...
In general, the economic value of something is how much a product or service is worth to someone relative to other things (often measured in money). ...
Derivatives are the instruments most commonly used in Financial risk management. Because unique derivative contracts tend to be costly to create and monitor, the most cost-effective financial risk management methods usually involve derivatives that trade on well-established financial markets. These standard derivative instruments include options, futures contracts, forward contracts, and swaps. Derivatives traders at the Chicago Board of Trade. ...
A contract is a legally binding exchange of promises or agreement between parties. ...
In finance, financial markets facilitate: The raising of capital (in the capital markets); The transfer of risk (in the derivatives markets); and International trade (in the currency markets). ...
In finance, an option is a contract whereby one party (the holder or buyer) has the right but not the obligation to exercise a feature of the contract (the option) on or before a future date (the exercise date or expiry). ...
In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. ...
It has been suggested that forward price be merged into this article or section. ...
In finance a swap is a derivative, where two counterparties exchange one stream of cash flows against another stream. ...
- See: Financial engineering; Financial risk; Default (finance); Credit risk; Interest rate risk; Liquidity risk; Market risk; Operational risk; Volatility risk; Settlement risk.
Financial engineering is the application of science-based mathematical and statistical models to make a better decision about managing financial risks, investing, borrowing, lending, and saving. ...
The risk that a company will not have adequate cash flow to meet financial obligations. ...
In finance, default occurs when a debtor has not met its legal obligations according to the debt contract, e. ...
Credit risk is the risk of loss due to a debtors non-payment of a loan or other line of credit (either the principal or interest (coupon) or both). ...
Interest rate risk is the risk that the relative value of a security, especially a bond, will worsen due to an interest rate increase. ...
Liquidity risk arises from situations in which a bank cannot sell an asset because nobody in the market wants to trade that asset. ...
Market risk is the risk that the value of an investment will decrease due to moves in market factors. ...
According to §644 of International Convergence of Capital Measurement and Capital Standards, known as Basel II, operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. ...
Volatility risk in financial markets is the likelihood of fluctuations in the exchange rate of currencies. ...
Settlement risk, also known as the Herstatt risk is the risk that a counterparty does not deliver security or its value in cash as per agreement when the security was traded after other counterparty or counterparties have delivered security or cash value as per the trade agreement. ...
Relationship with other areas in finance Corporate finance utilizes tools from almost all areas of finance. Some of the tools developed by and for corporations have broad application to entities other than corporations, for example, to partnerships, sole proprietorships, not-for-profit organizations, governments, mutual funds, and personal wealth management. But in other cases their application is very limited outside of the corporate finance arena. Because corporations deal in quantities of money much greater than individuals, the analysis has developed into a discipline of its own. It can be differentiated from personal finance and public finance. Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. ...
Public finance (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government. ...
Related Professional Qualifications The new internationally recognised Corporate Finance Qualification (CF) is the only directly related professional qualification, although many others traditionally can lead to the field: A professional certification, trade certification, or professional designation often called simply certification or qualification is a designation earned by a person to certify that he is qualified to perform a job. ...
Accountant, or Qualified Accountant, or Professional Accountant, or Accountancy Practitioner, is an accountancy and financial experts legally certified in different jurisdictions to originally worked only in public practices, selling advice and services to other individuals and businesses, but today in addition many work within private corporations, financial industry and government...
It has been suggested that this article or section be merged into Association of Chartered Certified Accountants. ...
The Association of Chartered Certified Accountants (ACCA) is a British chartered accountancy body with a global presence that offers the Chartered Certified Accountant (Designatory letters ACCA or FCCA) qualification worldwide. ...
Chartered Accountant (CA) is the title of members of a certain professional accountancy associations in the Commonwealth countries and Ireland. ...
CA or ca may stand for: C&A stores calcium (Ca): symbol for the chemical element California: State of, United States Canada (ISO country code) Catalan language (ISO 639 alpha-2) Cellular automata Central America Certificate authority Channel America: Defunct US television network Chartered accountant Chemical Abstract Citizens Alliance: Political...
Certified Public Accountants (CPAs) are qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA. In most U.S. states, only CPAs who are licensed are able to provide to the...
For other meanings of CPA see CPA (disambiguation) Certified Public Accountants (CPAs) are accounting professionals of the United States who have passed the Uniform CPA exam, which was developed and is maintained by the American Institute of Certified Public Accountants (AICPA), and have subsequently met additional state requirements for licensure...
Accountancy (profession) or accounting (methodology) is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers make resource allocation decisions. ...
Cost accounting or cost control professional designation offered by the AAFM â„¢ American Academy of Financial Managementâ„¢ The CCA â„¢ is a Graduate Post Nominal (GPN) that is only available for accountants with an accredited degree, MBA, Chartered Accountant License, law degree, CPA, PhD or specialized executive training. ...
The American Academy of Financial Management â„¢, or AAFM â„¢ as it is known, is a professional association dedicated to the finance sector and finance professionals. ...
In the United States, the profession of accounting includes the Certified Management Accountant (CMA) designation. ...
The Chartered Institute of Management Accountants (CIMA) is a United Kingdom professional body that offers a qualification in management accountancy, focusing on accounting for business. ...
Master of Business Administration (MBA) is a masters degree in business administration, which attracts people from a wide range of academic disciplines. ...
Master of Business Administration (MBA) is a tertiary degree in business management. ...
The degree of Doctor of Business Administration (DBA) is a research-oriented doctorate. ...
DBA may mean: // Decibels audible Diamond-Blackfan anemia Dibenzylideneacetone .dba format, a calendar format for Palm Desktop Doctor of Business Administration, an academic doctoral degree dba, a low-cost German airline The Dallas Bar Association for lawyers in Texas, USA A database administrator (or analyst) A-weighted decibels (dBA), in...
Master of Science in Finance MSF is typically a one-year, non-thesis graduate program designed to prepare graduates for careers in financial analysis, investment management and corporate finance. ...
Chartered Financial Analyst (CFA) is a professional designation offered by the CFA Institute (formerly known as AIMR) to financial analysts who complete a series of three examinations and work for at least four years in the investment decision making process. ...
Certified International Investment Analyst (CIIA) is a designation offered by the Association of Certified International Investment Analysts (ACIIA) to professional financial analysts; candidates may be financial analysts, portfolio managers and or investment advisors. ...
The Association of Corporate Treasurers (or ACT for short) was founded in 1979. ...
CMA Certified and Chartered Market Analyst â„¢ Financial and Market Analysis professional designation offered by the AAFM â„¢ American Academy of Financial Managementâ„¢ Also known as the FAD Financial Analyst Designate credential. ...
MFM Master Financial Manager â„¢ Financial management graduate professional designation offered by the AAFM â„¢ American Academy of Financial Managementâ„¢ Those with college degrees who have a major in finance or corporate finance are generally suitable candidates. ...
See also - Related topics by category:
Business organizations is an area of law that covers the broad array of rules governing the formation and operation of different kinds of entities by which individuals can organize to do business. ...
Categories: Possible copyright violations ...
To meet Wikipedias quality standards, this article or section may require cleanup. ...
Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. ...
Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis in making informed business decisions that would allow them to be better equipped in their management and control functions. ...
Managerial economics (also called business economics), is a branch of economics that applies microeconomic analysis to specific business decisions. ...
Merger redirects here. ...
A leveraged buyout (or LBO, or highly-leveraged transaction (HLT), or bootstrap transaction) occurs when a financial sponsor gains control of a majority of a target companys equity through the use of borrowed money or debt. ...
A takeover in business refers to one company (the acquirer, or bidder) purchasing another (the target). ...
A corporate raid is a business term, sometimes also referred to as breaking a company. ...
A reverse merger is a method by which a private company can become a publicly traded company without the expense and time requirements involved in an initial public offering (IPO). ...
Private equity is a broad term that refers to any type of equity investment in an asset in which the equity is not freely tradable on a public stock market. ...
Public finance (government finance) is the field of economics that deals with budgeting the revenues and expenditures of a public sector entity, usually government. ...
A real option is the right, but not the obligation, to undertake some business decision, typically the option to make a capital investment. ...
Venture capital is a general term to describe financing for startup and early stage businesses as well as businesses in turn around situations. ...
This is a list of topics which are relevant to Accountancy. ...
What follows is a list of over 250 Wikipedia articles on finance topics. ...
What follows is a list of over 250 Wikipedia articles on finance topics. ...
What follows is a list of over 250 Wikipedia articles on finance topics. ...
This list provides an alphabetical index of articles on finance related topics. ...
External links and references General - Corporate Finance Faculty The largest network of professionals involved in corporate finance with more than 6,000 members – ranging across major accounting and professional services firms, companies, banks, private equity houses, brokers and law firms.
- Corporate Finance page, Prof. Aswath Damodaran, Stern School of Business, New York University
- Global Financial Management page, Prof. Campbell R. Harvey, Fuqua School of Business, Duke University
- Finance Lectures (.exe format), Peter Ekman, CEU Business School
- Studyfinance.com, University of Arizona
- The 20 Principles of Financial Management, Prof. Don M. Chance, Louisiana State University
- Web Sites for Discerning Finance Students, Prof. John Wachowicz at the University of Tennessee.
- FM Worksheets excel in Financial Management By Matt Evans
- Corporate Finance: Overview, careers-in-finance.com
Valuation and Capital Budgeting The Leonard N. Stern School of Business is New York Universitys (NYU) business school. ...
New York University (NYU) is a major research university in New York City. ...
The Fuqua School of Business The Fuqua School of Business is the business school of Duke University in Durham, North Carolina. ...
Duke University is a private coeducational research university located in Durham, North Carolina, USA. The school, founded by Methodists and Quakers in the present-day town of Trinity in 1838, moved to Durham in 1892. ...
The CEU Business School is part of the Central European University in Budapest, Hungary. ...
The University of Arizona (UA or U of A) is a land-grant and space-grant public institution of higher education and research located in Tucson, Arizona, United States. ...
Louisiana State University and Agricultural and Mechanical College at Baton Rouge, generally known as Louisiana State University or LSU, is a public, coeducational university located in Baton Rouge, Louisiana and the main campus of the Louisiana State University System. ...
The University of Tennessee (UT), sometimes called the University of Tennessee, Knoxville (UT Knoxville or UTK), is the flagship institution of the statewide land-grant University of Tennessee public university system. ...
Look up Excel on Wiktionary, the free dictionary Microsoft Excel, a spreadsheet application produced by Microsoft Corporation Excel, Alabama Hyundai Excel, a car also called Hyundai Pony in some markets (Europe) Hyundai Excel, the name of the X3 version of Hyundai Accent in some markets (Australia) A brand of chewing...
Capital Structure and Dividend Policy Working Capital Management Real options Decision Tree Analysis Columbia University is a private research university whose main campus lies in the Morningside Heights neighborhood of the Borough of Manhattan in New York City. ...
This article is being considered for deletion in accordance with Wikipedias deletion policy. ...
Financial risk management Arizona State University (ASU) is a public institution of higher education and research with several campuses located in the Phoenix Metropolitan Area. ...
Related Professional Qualification |
Feeds |
Contact