222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Latest $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Corporate Finance (CFA Level 2)


Corporate finance is the part of finance in which we take financial decision relating to companies.  Corporate finance study is helpful to maximize return on investment of company at minimum risk. In CFA Course Level - 2, it is important topic which is taught by teacher. In corporate finance, CFA students have to study corporate investment decisions, corporate financing decisions, corporate working capital decisions and financial risk management. Now, we are explaining these decisions of corporate finance one by one.

1. Corporate Investment Decisions 

Suppose, any corporate has 10000 branches in 193 countries and as certified financial analyst, it is your duty to take the decisions of investment of $ 500 billion for buying building, plants, furniture and machinery of these 10000 branches. This decision may be difficult for one officer only if you do not know capital budgeting tools and its effective use with the help of computer software. But an expert CFA will make the list of all fixed assets by creating data base of its purchasing price, active life and related benefits. And then, he will calculate its NPV by applying appropriate discount rate.

For example, each machinery has three supplier. But we have to choose one the best. At that time, higher NPV project will be accepted. We also consider our this investment's risk and we will compare its risk with other investment projects. We can also use other discounted cash flow valuation methods like IRR, CAPM, discounted paying back period method. For knowing uncertainty level, we will do sensitive analysis. Even after real big investment, our work will not stop. We will make cash flow statement for knowing actual net cash inflows from particular investment.

2. Corporate Financing Decisions 

Corporate financing decisions are taken for supply of money for corporate investment projects. Suppose, in above example, we have collected $ 500 billion from share capital but actual need for investment for good profit is $ 700 billion, then how will you get $ 200 billion? Answer is through corporate debt financing. But, we will take this decision by following way:

a) We want to get cheap loan - Compare cost of capital.

b) We do not want to to lose our control - Make good financial mix.

3. Working Capital Management Decisions 

We need working capital for buying current assets, paying current expenses and current liabilities and other purposes. So, in working capital management, we manage our all current assets. We take decisions when, how and from where will we buy inventory? What will be credit limit for our customers? When will we pay to our creditors. Good management of this will be helpful for us for reducing stress on long term fun for the purpose of working capital.

Financial Risk Management 

Due to happening of future loses, increasing the cost of products, changing of interest rate and exchange rate, we have to face different type of risks. So, in corporate finance, it is our prime duty to measure all these risks. Classify all these risks in liquidity risk, solvency risk, legal risk and natural risk or any other. Use good techniques for managing it. In these techniques, we can include hedging, option, future contracts, credit rating, currency swap, interest rate swap, credit reporting and  following rules to prevent money laundering

Comments

 


Name

access,2,account,86,accountant,95,Accounting,685,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,88,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,8,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,144,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,6,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,3,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Corporate Finance (CFA Level 2)
Corporate Finance (CFA Level 2)
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDLjDnCbZFZpBtsMSCbSYK03mbQoumriSM8MWcQdgojYNyKroANo2yFZ-RcwnXRuW6LbZNd0xILXWbmxSdrd7KxRxANkGgAPBXTFF-hmqxwQZEzGKIJB-NhbfKqTmzKTfulFTtWiIw_2OI/s400/corporate+finance.PNG
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDLjDnCbZFZpBtsMSCbSYK03mbQoumriSM8MWcQdgojYNyKroANo2yFZ-RcwnXRuW6LbZNd0xILXWbmxSdrd7KxRxANkGgAPBXTFF-hmqxwQZEzGKIJB-NhbfKqTmzKTfulFTtWiIw_2OI/s72-c/corporate+finance.PNG
Accounting Education
https://www.svtuition.org/2011/09/corporate-finance-cfa-level-2.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2011/09/corporate-finance-cfa-level-2.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy