Economy, asked by rishi323886, 8 months ago

whta is importance of corporate fianance? give 10 imporance.

Answers

Answered by saishobana
1

Answer:

•Research and Development

•Motivating Employees

•Promoting a Company

•Replacement of Assets

•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.

•Helpful in Planning of Finances Stage

•Helpful in Capital Raising Decision

•Financial Monitoring and Risk Management

•Corporate finance is the area of finance dealing with the sources of funding and the capital of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources.

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Answered by ÚɢʟʏÐᴜᴄᴋʟɪɴɢ1
36

Answer:

  1. Every penny invested in business has a cost.
  2. It can at the least be invested in Fixed Deposits and earned 6%pa (if not invested in business).
  3. Thus money invested in business need to return more than cost of funds be it FD rate or interest rate on bank loanHigher the risk, higher the return.
  4. Shareholders ask highest returns, more than debt holders
  5. Excess Money kept idle is money wasted. Invest it
  6. Tax is real, avoid it at all cost
  7. Research and Development .
  8. Motivating Employees.
  9. Smooth Conduct of Business.
  10. Meeting Contingencies.

hope its help☺❤✴

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