Role Of Corporate Finance

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Corporate Finance and Financial Manager Role Over time, every business finds that while it has attempted to make the best decisions for its success, sometimes the right choices were made and sometimes the wrong decisions were made. Having said that business decisions are important and could succeed in the business world if they answer for themselves questions like: how can we define if we are doing well in our business? Or what are the best options and decisions? Are we generating profit or loss? Some of these questions acknowledge corporate finance notions guided by the financial manager. First of all, corporate finance is about the capital managing process in any business whether private or public, large or tiny, manufacturing…show more content…
d.). Financial corporate needs analyses patrons in the business them follow principles which lead a company to handle finances in the right way to develop a great business. The principles are involving in investment, financing, dividend (Damodarian, n. d.). Investing principles are about showing a returning stronger than the risk in investment projects. The financing principle has about chosen a balance between debt and equity, which increase the value of the investment; also it makes that the investment match with the asset financing. Dividend principle is the last principal; it teaches about the decision of the money earned and the amount that should be reinvesting in the business and left to the owner; the cash should return to investors and owners of the firm when the profit doesn 't cover the hurdle rate expectation. According to a professor from NYU, these three principles are the focus on one target, which is growing the business value, basing not only in some compilations of influential modern theories of corporate finance but also in common sense principles (Damodaran, n.…show more content…
Additionally, finding opportunities that bring a plus to the firm make the different between an excellent financial manager to an inefficient financial manager; It is no more than identify occasion which could add in investment to benefit the company. A business can use opportunities if the organization is efficient finding opportunities and pay for the desired acquisitions (Brian, n.d.). Finally, risks are unavoidable in business, but it most is carefully taking. That 's way financial manager try to reduce risk and take preventions; They should bring a ensures for building, equipment and essential workers. Controlling debt and credit arrangement with suppliers and financial institutions helps to reduce risks by allowing the firm operated freely in case that the business experiences cash flow problems(Brian,

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