Divestitures
Executives are often concerned that divestitures will look like an admission of failure, make their company smaller, and reduce its stock market value.
Yet the research shows that, on the contrary, the stock market consistently reacts positively to divestiture announcements.11.J.
Mulherin and Audra Boone, “Comparing acquisitions and divestitures,” .
How can corporate finance maximize the value of a business?
The ultimate purpose of corporate finance is to maximize the value of a business through planning and implementation of resources, while balancing risk and profitability.
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CFI’s free introduction to corporate finance course. Mergers and Acquisitions
Acquisitions are both an important source of growth for companies and an important element of a dynamic economy.
Acquisitions that put companies in the hands of better owners or managers or that reduce excess capacity typically create substantial value both for the economy as a whole and for investors.
You can see this effect in the increased combi.
Project Analysis and Downside Risks
Reviewing the financial attractiveness of project proposals is a common task for senior executives.
The sophisticated tools used to support them—discounted cash flows, scenario analyses—often lull top management into a false sense of security.
For example, one company we know analyzed projects by using advanced statistical techniques that always sh.
What are the basic concepts of corporate finance?
Corporate finance is the process of obtaining and managing finances in order to optimize a company’s growth and value for its shareholders.
The concept focusses on investment, financing and dividend principle.
The main functional areas are capital budgeting, capital structure, working capital management and dividend decisions.
What are the primary goals of corporate finance?
The primary objective of corporate finance is maximizing shareholder value by means of both long and short-term planning and implementing different strategies.
Corporate finance is essential for any business whether big or small.
What are the types of corporate finance?
Corporate finance major focus areas include:
capital budgeting capital structure working capital and dividend decisions.
The capital budgeting process discloses the viability of investment proposals and helps invest in profitable projects.
The goal is to maximize the growth and profitability of the business. Interested in a career in corporate finance? Looking to move up the ladder at your current job? This introduction to corporate finance cour…
