CORPORATE FINANCE: The Complete Guide (+ free courses)

corporate finance jobs, corporate finance pdf

If you are a business owner, or maybe you are among the decision-makers in a firm. You might wonder about the actual importance of corporate finance. First, you should know that understanding the various types of corporate finance as a manager or financial personnel can make your business boom in a short time. This is because it can help your business or firm make smart financial decisions, which are like the rock of a business. Meanwhile, this article covers everything you need to know about corporate finance, ranging from the corporate finance institute to corporate finance, syllabus, courses, jobs, and pdfs.

What is Corporate Finance?

Corporate Finance is a sub-sector in Finance that has to do with the way corporations handle their source of funding and funding opportunities, investment decisions, and capital structure. However, the basic aim of corporate finance is to maximize shareholder value. This can be done through financial accounting and planning. The various types of corporate finance involve activities like capital investment and investment banking.

Understanding Corporate Finance

This sector in a firm has an important function of managing or governing the financial activities in the firm. This activity specifically includes capital investments, if or how to pay for an investment, criteria to make an investment or let it go.

In simple terms, they manage all short term financial decisions in a firm.  It also involves the decision that involve shareholders and how they will receive their dividend. Management of current assets, and liabilities are not left out.

Cardone Capital- Investment Opportunity

Types of Corporate Finance

There are various types of corporate finance, although still towards the same financial goal.

#1. Capital Investments

One of the important aspects of corporate finance is making capital investments. This is why firms are taking capital investments seriously. Capital Investment has a li k with capital budgeting. Perhaps, because it helps a firm recognize capital expenditures, make estimates on expected cashflow from proposed projects, measure investments and proceedings, and finally decide on which to include in the budget.

In addition, you should know that making capital investment wrongly cam jeopardize a firm or business seriously. A capital investment can go wrong if the financial professionals in the firm or company lack basic financial literacy skills.  Lack of skill and experience can, however, lead to investing too much or too little which is as a result of poor capital budgeting.

#2. Capital Investment  

One of the roles of corporate funding is to source capital in form of debt or equity. For instance, a commercial bank or other intermediaries should lend money to a firm, on the other hand, the firm can issue debt securities in the capital market. This can easily be done through investment banks.

Similarly, a company can decide to sell stocks, especially to investors (equity). This is mostly done when the firm needs large capitals.

One interesting thing about capital financing is that it balances the decisions of deciding the amount between debts and equity. Because when a firm has too much debts, it certainly increases the risk. On the other hand, when they depend on equity it can neutralize earnings and values of some investors.

Finally, the major point is that capital financing will definitely provide a firm with the capital needed to make capital investments.

#3. Short-Term Liquidity

Another importance of corporate finance is that it has the role of short term financial management, this is sole to ensure the firm has enough liquidity for future transactions. This type of corporate finance concerns itself with short term financial management, which includes, current assets, liabilities, or working capital.

However, it is important to know that a firm must meet all the obligations of its current liability when the time comes. To do this without affecting the company’s operations, the company needs to have enough liquid assets. In short-term financial management, it is possible to issue commercial papers as liquidity backups.

Importance of Corporate Finance

Most firms and companies are unavoidably involved in corporate funding because it involves various financial activities that are beneficial to them. Below are some of the important aspects of corporate finance, and also the reason firms want to keep using it.

#1. Managing Risk

It is certain that a firm must be involved in a certain risk. If the company is at higher risk, it needs to be covered by good insurance. Some risks are worth panicking over. The huge importance of cooperative finance is that it is always there to meet most kinds of risks, especially sudden ones, created naturally. For instance, a fire outbreak in a session of the firm.

#2. Making

 Most decisions made in a firm or company are influenced by finance and finance sources. For instance, before a firm starts considering a brand new project. The firm needs to be sure that it will have positive returns, i.e. yield profit to the firm. However, if the firm does not go through the appropriate decision-making process, it might incur some losses.

This simply means that before a firm should venture into something new, the finance professionals needs to sit and analyze the availability of budget while making so many other considerations. At the end of all the meetings and considerations, they will definitely come up with well informed decisions that will benefit the firm.

#3. Raising Capital

It is important for corporate finance to raise capital each time the organization needs to invest in a new venture. Managing a firm’s finances properly can go a long way for a firm, especially in terms of raising capital. Moreover, by selling debentures, taking loans from financial institutions etc.

#4. Minimizing Manufacturing Cost

Another major importance of Corporate finance is that it ensures minimization of production cost. When the price of production starts rising, like, raw materials, labor, logistics, etc., it means that companies need to make strategic and innovative plans on how to reduce the cost of production or increase prices.

Another way the cost of production can be reduced is by buying raw materials in bulk. And thereafter, getting automated machines that can increase quantity of production at a reduced cost.

#5. Research and Development

Financing is important in a business or firm because it helps to understand what’s best for the firm. That is, by performing research on the market with products the firm develops better.

Another way to look at it is, that the firm can update its products in the market and also push new ones into it. This is because the world is fast-changing, and any firm that does not move with the trends in the market might be left behind. In most cases, firms also employ people specialized in the market survey to get well-informed details and customer feedbacks for analyses to be made on how to improve and become better.

Who uses Corporate Finance?

Banks and other independent lenders who supply debt; Governments and other public authorities and agencies; Institutional or private investors, such as private equity companies and venture capitalists.

Is Corporate Finance a Banking?

Corporate finance is concerned with the day-to-day operations of a business, while investment banking focuses on expanding that business. While investment bankers are primarily concerned with securing funding, corporate financiers are responsible for managing day-to-day financial operations and directing the company toward both short- and long-term goals.

What is Corporate Finance Theory?

The goal of corporate finance theory is to help businesses meet their financial goals by careful planning, capital-raising, investment, and monitoring.

Is Corporate Finance a Good Job?

Corporate finance can be an excellent career path for somebody with good quantitative analysis skills who is looking for a stable job. Many professions go through boom and bust cycles.

Is Corporate Finance Stressful?

A career in finance, like any other, has its pitfalls. They can include high stress, significant responsibility, long work hours, continuing education needs, and, in some situations, a lack of job security—the finance business is cyclical in nature.

Corporate Finance Institute

Corporate Finance Institute CFI is an organization that educates, trains (online) people to make a financial analysis. They also provide financial analyst certification.

Corporate finance institute train people to become financially independent (n as a first. and investment professionals. In addition, they offer courses that provide students with skills in financial modelling, valuation and some other corporate finance courses.

The corporate finance institute provides any course they believe will be beneficial and important in this modern phase. For instance, Microsoft Excel, Accounting and finance, business strategy.

Note: All courses offered by the CFI are delivered online. CFI also provides financial modelling and Valuation Analyst (FMVA) Banking and Credit Analyst (CBCA).

Corporate finance institute was incorporated as a joint venture with MDA training. MDA which was a London-based financial training company founded in 1988 by Professor Walter Reid. Meanwhile, Professor Walter Reid was one of the founders of London Business School.

Corporate Finance Syllabus

Above are the syllabus of Corporate finance. This will definitely be helpful if you are planning g to take a course in finance. However, the syllabus might be slightly different across countries and regions. Although, this will give you a great idea of what to expect. It can also be a great guide to help you read ahead.

Corporate Finance courses

Here are some courses in corporate finance that can help you start or improve your career in finance. They are certified online courses. In as much as you will take the course at your convenient time, you will be certified.

The Corporate Financing Course 2020

Corporate Governance, Capital Budgeting, Cost of Capital, Leverage, Working Capital: Complete Finance Training.

Corporative Finance and Strategic Corporate Management

This course discusses strategic management and the role of the CFO in facilitating corporate strategy development.

CFA Level 1 (2020) Corporate Financing + Practice Questions

Corporate Finance course for the CFA L1 curriculum|Plus 96 practice questions with answers|Prof. James Forjan, PhD, CFA

Business Financing and Strategic Corporate Management

This course discusses strategic management and the role of the CFO in facilitating corporate strategy development.

Corporate Finances and Alternative Investment for CFA L1

This course covers two important topic areas of CFA L1 exam, which are Corporate Financing and Alternative Investments.

Corporate Finance Pdfs

  1. Lectures on Corporate Finance (Second Edition)

By Peter Bossaerts and Bernt Arne 0degaard

This course of lectures introduces students to elementary concepts of corporate
finance. Although, using a more systematic approach than is generally found in other textbooks. Axioms are first highlighted and the implications of these important concepts studied afterwards. However, These implications are used to answer questions about
business financing, including issues related to derivatives pricing, state-price probabilities, dynamic hedging, dividends, capital structure decisions, and risk and
incentive management.

2. Corporate Finance Compendium


”First, I believe that theory and the models that flow from it should provide the tools to
understand, analyze, and solve problems. The test of a model or theory then should not be
based on its elegance but on its usefulness in problem-solving. Second, there is little in
corporate financial theory that is new and revolutionary. The core principles of corporate
finance are common sense and have changed little over time”.

3. Applied business Finance 3rd Edition

4. Corporate Finance Part 1

Part I of this book is about business finance, which is concerned with the effective use of financial
resources in creating corporate value. It also looks at the financial environment in which businesses
operate, their financial aims and objectives. In addition, it includes a wide range of strategic financial management techniques related to financial decision-making.

5. Corporative Finance

By Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe

6. Principles of Corporate finance

By Richard A. Brealey, Stewart C. Myers, Franklin Allen

This book is about how corporations make financial decisions. Meanwhile, we will start by explaining what these decisions are and what they are seeking to accomplish.

Corporate Finance Jobs

Below are job opportunities and openings in corporate finance.

Internship: Corporate Finance- job post

Location: Indianapolis, IN 46214

Job Description: Exciting Opportunity to be part of the LabCorp/Covance 2020 Global Internship Program as a
Financial Analyst in Indianapolis, IN ! We offer real work assignments that compliment an
education in STEM+ Healthcare…

Apply here

Corporate Finance (job) Systems and Analytics Analyst

Location: San Francisco, CA 94103

Job Descriptions: Twitter’s finance group is looking for an analyst to join our team. As a finance team member, you will perform a variety of tasks including modelling of financials and analyzing data to identify trends…

Apply here

Corporate Finance Associate- job post

Location: Palmer Kent Associates-Richmond, VA

Job Description: The Richmond Team of a global firm seeks an associate with three to six years of experience to join its Business Finance and Mergers & Acquisitions practice group…

Apply here

Associate, Corporate Finance Job

Location: San Francisco, CA

Job Description: We are seeking an investment banking and finance professional with an emphasis on capital markets transactions with over three years of experience in originating, structuring, executing and managing transactions for clients…

Apply here

You might also want to read: Small business ideas: The top 10 (+ free tips)

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FAQ

What is corporate finance example?

Corporate Finance is a sub-sector in Finance that has to do with the way corporations handle their source of funding and funding opportunities, investment decisions, and capital structure

What do corporate finance do?

This sector in a firm has an important function of managing or governing the financial activities in the firm. This activity specifically includes capital investments, if or how to pay for an investment, criteria to make an investment or let it go.

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