Advanced Corporate Finance
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Advanced Corporate Finance
What is it?
From Wikipedia
Corporate finance is an area of finance
dealing with the financial decisions
corporations have to make and the tools
and analysis used to make these
decisions. The primary goal of corporate
finance is to maximise corporate value
while reducing the firm’s financial risks.
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Advanced Corporate Finance
The discipline can be divided into long term and
short term decisions and techniques.
Long term includes: Which projects to
undertake? How to finance them? How to
reward shareholders?
Short term includes: Managing cash, managing
inventories, managing short term borrowing and
investing, in short….
Working capital management
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Advanced Corporate Finance
• The terms Corporate Finance and
Corporate Financier are also associated
with Investment Banking.
• Investment Banks evaluate a company’s
financial needs and the best ways to raise
the appropriate type of capital.
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Advanced Corporate Finance
The Association of Corporate Treasurers
also talk about ‘three interesting questions
fundamental to treasury’
• How do we decide what to invest in?
• How do we raise the money to make those
investments?
• How do we control risk in the
organisation?
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Advanced Corporate Finance
We have touched on a lot of the issues in the
first year and you will be expected to be familiar
with the material that has been covered.
There will be some overlap to ensure continuity.
I am Anthony Birts
Contactable on X3675
Text book is ‘Corporate Finance’ by Jonathan
Berk and Peter DeMarzo. Published by Pearson.
Any Questions?
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