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 their capital is 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 to it, it is for the purpose of making maximization in shareholder values. Unlike managerial finance that studies how a firm’s financial management 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 applied to the issues affecting the finances of all kinds of businesses or firms. Capital budgeting and working capital are the two main sub-disciplines 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.
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 the 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.
To achieve the goal of any corporation, corporate finance has to be studied in a pattern on how a corporation generates capital for itself. The sourcing for funds or capital to run corporations is generically on capital self-generated by the company or firm from external sources like lending or issuing new debt and equity.
Corporate Finance Course
- Introduction to Corporate Finance
- Financial and Analyst certification course
- Accounting Fundamentals course
- The fixed Income fundamentals course
- Excel Crash Course spreadsheet formulas for finance
- Math for Corporate Finance
- Excel modeling fundamentals course
- Financial Analysis fundamentals course
- Building a financial model in excel
- Business valuation modeling
- Budgeting and forecasting
- Advanced Excel Formulas course
- Powerpoint & pitch books finance course
- Behavioral finance fundamentals
- Real estate financial modeling course
- Startup/e-commerce financial model course
- Mining financial model & valuation course
- Financial modeling using VBA
- Corporate & business strategy
These above 19 some basic courses for Corporate finance person and also included some of the advanced courses like advanced excel formulas for finance and Advanced powerpoint graph course. Also referred to 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 ones 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 believe that there will be an upward trend in the company value and in the future get their profit back from the investment made on the company by buying their shares. The reward given to shareholders on shares bought is called dividends.
All corporations aimed at making a 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 have 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 believe in the alternative way of allocation of resources in firms.
Corporations may depend on borrowed funds as sources of investment to run the operation of their business in progress. These 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 the form of payable notes (notes payable). The corporations are obligated to make regular interest payments on the borrowed funds till the debts elapse the time it should end; at this time, the corporations must pay back in full the obligation (debt).
Debt payments can also be in the form of annual installment payment or with callable bonds that give 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.