Coperate Finance

Posted on February 08, 2012 by Admin
Coperate Finance

Coperate Finance

Objective

The assignment requires you to apply the theory and/or model of corporate finance that you learnt in the lecture to a real organisation.   It will give you the opportunity to see corporate finance in action.


Course Objectives Achieved

On successful completion of the assignment, you will have achieved the following objectives:
• Appreciate the importance of finance and risk in business decisions
• Understand a firm’s investment, financing and dividend decision processes
• Understand the importance of working capital management to the firm’s liquidity
• Be able to identify the basic instruments of corporate funding and have an elementary understanding of the issues underlying capital structure theory and practice; and
• Understand the concept of risk management and its importance

Value of the Assignment

The report is worth 20% of the total marks for this course.

The Task

As a group, you are required to critically analyse

an organisation from the following perspectives:
1. The risk – risk profile, the sources of risk and the risk management strategies.
2. The capital structure – composition and preference
3. The dividend structure   – yield and payout

In your analysis, you are to explore any issue pertaining to each perspective as thoroughly and comprehensively as possible. For example:
• The risk profile of an organisation affects the price of its share and the capital structure. As such, discussion relating to risk profile must also study the effect on the organisation share price and the level of debt and/or equity financing.
• The method of financing is very often determined by the level of growth of the organisation. Your report should include this aspect of analysis when discussing about the capital structure.

You are also required to provide a comparison study between your chosen organisation and the industry it is operating in. If the industry information is unavailable, you can compare it with data from…

i will like u to educate me more on this coperate finance.i reed economics at my first degree and i just started finance as second degree. please teach me the major terms in this area.