Nov 20, 2011 - With all that said, I would take the Plagiarism Test if I were you, even if I were not required to. There are a lot of misconceptions out there about what does and does not constitute plagiarism (for instance, some people think it's on
Nov 20, 2011 - With all that said, I would take the Plagiarism Test if I were you, even if I were not required to. There are a lot of misconceptions out there about what does and does not constitute plagiarism (for instance, some people think it's on
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Why is corporate finance important to all managers? Follow
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Best Answer: Corporate finance is a basic component of how a business is run. All managers should keep this in
mind to direct funds to the optimal division or product in a company. In addition, managers should understand how their company is financed and whether it has a risk of bankruptcy. Conversely, managers should understand if the equity in the business is undervalued and has the potential to grow. Related Searches: Debt Finance Debt Equity Financing Return on Investment The most important reason for managers to understand corporate finance is the concept of return on investment (ROI) over time. This term is calculated by subtracting the gain on investment from the cost and dividing that by the initial cost. Understanding this helps managers to invest funds more efficiently. For example, a product that needs a $10 million investment to generate $1 million in profits is less efficient than one that could generate $500,000 in profits with a $2 million investment cost. Company Debt
Related Questions Why is corporate finance important to all managers? ? Why is corporate finance important to all managers? Why is corporate finance important to all managers?
If a manager believes his division is ready for growth and wants to issue debt for the funding, he should understand the return necessary to efficiently produce profits. In a fast-growing technology company with high return-oninvestment requirements, issuing debt is often a poor option versus using existing cash. Managers with a good knowledge of corporate finance will have a better understanding of this tradeoff. Company Equity Issuing equity is an option that companies use to generate investment funds and is an alternative to debt issuance. Corporate managers should understand equity to better know the capital structure of the firm. For initial public offerings, managers need to understand how new funds will be distributed and how their division will be affected. Equity offerings have a much higher threshold for return on investment because they are a permanent relinquishment of a portion of future earnings.
Help? Should I study Corporate Finance or Petroleum Engineering? A bit Long? Help? Should I study Corporate Finance or Petroleum Engineering? A bit Long?
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Company Options
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Managers at many companies have equity options in the company. These fluctuate with the market and affect the
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total capital structure of the firm. Options also affect the income of the firm because they are counted against earnings. In this instance, managers must understand corporate finance for their own personal wealth. Managers
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seeking to understand and grow their personal balance sheet should understand these financial instruments.
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Anonymous · 6 years ago 1
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How can the rich pay in some way to make up for what poor don't have?
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Why is it important to poison the water in the US? Why gut the EPA and let Corporations do what ever they want? Where do we get drinking?
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Managers of a company must know the finance of a company as this help managers to know the health of the
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company and can act accordingly with a common guideline .Suppose a marketing manager going to market to sell the companies products .and he does not know the company is running financial trouble and products are not matching proper quality standards and unfortunately the products are sold to the customers .The products fail to produce good result .Imagine what would be the condition of the company with so much adverse impact .
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Gina · 2 years ago 0
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It is better to go for interested one. You are interested in Finance so choose finance. When there are two options choose which is easier and also in which you have interest. Choosing difficult one will lose Your concentration and
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difficult to justify with subject. Natasha · 2 years ago 0