Corporate Finance Books for MBA beginners

Corporate Finance Books

Corporate finance is a category of finance too that deals with the study of how money or funds are been sourced for in a company or corporation and how there capital are being structured (capital structure) in that company. In Corporate Finance Books some basic books must be handy with the students is Fundamentals of Corporate Finance which was published in 1991. The main objective of all the business books is to clear What is Corporate finance and the perfect answer of it, it is for the purpose of making maximisation in shareholder values. Unlike managerial finance that studies how firm’s financial managements are being studied alone, corporate finance studies the financial management of corporations alone.

READ: What does Finance mean

Principle of Corporate Finance which was published in 1980 gives the concept of corporate finance as applicable to the issues affecting finances of all kinds of businesses or firms. Capital budgeting and working capital are the two main sub discipline in corporate finance. Capital budgeting discipline is concerned with how criteria are set about value adding assets should have the investment funding and how to use the investment to build the corporations in equity.

What is corporate Finance

Principles of Corporate Finance

There are 11 editions already out for this book and also expecting the 12th edition soon. Also, Finance is pretty much important thing to manage not only in corporate world but also in public and personal finance. Working capital discipline has to do with the management of the corporation monetary funding that term operating balance of current assets and current liabilities.

The business of Investment Banking is one of the most important books to get complete information about Investment banking. It is an important term which is associated with corporate finance. Investment banking is the process of evaluating the financial needs of any company and also try to raise capital that can be used to attain those needs.

Thus, the terms Corporate finance, work hand in hand with financial management and financial accounting which is the act of reporting the financial information of a corporation while financial management is concerned with how funds and capital are being allocated to the corporation to increase the shareholder value.

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To achieve the goal of any corporation, corporate finance has to be studied in a pattern on how a corporation generate capital for itself. The sourcing for funds or capital to run corporations are generically on capital self-generated by the company or firm from external sources like lending or issuing new debt and equity. 

Corporate Finance Course

  1. Introduction to Corporate Finance
  2. Financial and Analyst certification course
  3. Accounting Fundamentals course
  4. Fixed Income fundamentals course
  5. Excel Crash Course spreadsheet formulas for finance
  6. Math for Corporate Finance
  7. Excel modeling fundamentals course
  8. Financial Analysis fundamentals course
  9. Building a financial model in excel
  10. Business valuation modeling
  11. Budgeting and forecasting
  12. Advanced excel Formulas course
  13. Powerpoint & pitch books finance course
  14. Behavioural finance fundamentals
  15. Real estate financial modeling course
  16. Startup/e-commerce financial model course
  17. Mining financial model & valuation course
  18. Financial modeling using VBA
  19. Corporate & business strategy

These above 19 some basic courses for Corporate finance person and also included some of advanced courses like advanced excel formulas for finance and Advanced powerpoint graph course. Also referred some book above as best study material. These books are the base and backbone of Corporate finance.

How corporate finance works

  • Different startup companies and also established one’s can borrow money from commercial banks to run different projects and fund them back as project launches and starts giving output.
  • Equity Capital also comes under corporate finance. The company sells shares or bonds to investors or shareholders. Shareholders buy these bonds and in return the money got is used to finance the corporation.
  • The shareholders believes that there will be upward trend in the company value and in the future get there profit back from the investment made on the company by buying their shares. The reward given to shareholders on shares bought is called dividends.

What does finance mean

All corporations aimed at making profit from their investments. This is aimed at helping the corporation to get rid of any debts to avoid their liabilities being greater than the assets. There are some problems that can be faced by the corporation e.g. financial distress, a corporation goes through financial distress when it does not have money to run the affairs of the corporation again or when the values of the shareholders has reduced. Companies also face the problem of their liabilities being greater than their assets.

Types of Corporate Finance

The Trade-Off Theory in corporate finance which firms have always to trade-off the tax benefits of debt with the bankruptcy costs of debt when choosing how to distribute the company’s resources. Economists believes in the alternative way of allocation of resources in firms.

READ: Importance of Public Finance & Scope

Corporations may depend on borrowed funds as sources of investment to run the operation of their business in progress. This borrowed funds are called debts and debt comes in different forms; either from banks or bonds issued to the public, it can also be in form of payable notes (notes payable). The corporations are obligated to make regular interest payments on the borrowed funds till the debts elapses the time it should end; at this time, the corporations must pay back in full the obligation (debt).

Debt payments can also be in form of annual instalment payment or with callable bonds that gives the corporation an opportunity to pay back in full whenever they have the interest to pay off the debts. Corporations are allowed to give collateral if they are unable to pay off the debts at the agreed time from the debt sources.

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Harish Yadav

Finance and market analyst and chief writer on howtofinance. Passionate to read books and articles on marketing and accounting. Also edits other articles and publish them here.

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