What is Corporate Finance?
Corporate Finance deals with the sources and uses of funds in an organization. It takes into account the financial decisions taken by managers and their implications, with the ultimate aim being the maximization of wealth and shareholder value. Corporate Finance is not restricted to large corporations alone. To the extent that it deals with the efficient use of limited resources by a firm, it becomes an important tool even for large public sector units and small privately run businesses.
Some salient features of Corporate Finance are as follows:
· Capital Investment decisions – This deals with issues like whether a particular investment decision is a good use for the firm’s resources. The allocation of funds between a number of competing projects (or Capital Budgeting), is one of the most basic decision nodes in Corporate Finance.
· Capital Structure – Once a project has been decided on, the next step involves identifying how it is to be financed – through Debt, Equity or Preferred Stock. The main outcome of any investment decision is the maximization of value to the shareholder.
· Short-term vs. Long-term – Some of the near-term decisions of a firm involve management of Working Capital. In this, the Corporate financier needs to examine whether the firm has sufficient funds for paying suppliers (accounts payable), and whether the firm has a satisfactory record of recovering funds owed to it (accounts receivable). Among other working capital issues are the availability of sufficient levels of cash and cash equivalents and optimal inventory control. The long-term decisions of a firm include purchasing new factory space, the feasibility of introducing new product lines and other similar large-scale investments. IMS Proschool’s Program for Corporate FinanceCIMA: Chartered Institute of Management Accountant (World’s largest professional body of Management Accountants)
The CIMA curriculum serves as a guide to finance professionals, both with large as well as small firms. With reference to Corporate Finance, CIMA helps the analyst in evaluating and assessing business decisions and their financial implications. It serves as a benchmark for deciding whether projects undertaken by the firm have been an optimal use of the firm’s resources. Further, the CIMA syllabus also helps the Corporate Finance professional in delineating corporate strategy and identifying the downside risks involved in the firm’s financial and strategic profile. Finally, the CIMA course outline teaches accounting techniques that can be used to deal with planning and budgeting issues. View more info on CIMA Course
.Post Graduate Program in Management Accounting
This program has been designed and structured as the fastest way to achieve the CIMA certification. As mentioned above, CIMA serves as a very important financial tool for Corporate Finance professionals. Essentially, this program deals with the fields of Accounting and Finance with a critical Management focus. Get more info here.