Q.7 Answer the following questions.
1. Discuss the importance of corporate finance.
2. Discuss the factors determining working capital requirement.
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1) The main aim of corporate finance is to increase the shareholder values that help the managers to be able to balance capital funding between investments in projects that increase the long term profitability and sustainability of a company.
2)The price levels of inventory and other expenses such as labor rates etc increase the working capital requirement. Other factors that determine or impact the working capital in some or the other way are as follows: Cash Requirements. Volume of Sales.
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