Corporate finance is one of the most promising areas of economic science, which combines both theoretical developments in the field of finance, accounting, analysis, and management, as well as practical models, methods, and technical tools for assessing the value of a business, its development strategy.
The objectives of mastering the academic discipline “Corporate Finance” are:
– formation of a set of fundamental knowledge and skills in the field of modern finance for students, forming a theoretical basis for understanding analysis and working in modern financial capital markets;
– mastering by students of a set of concepts and fundamental models of modern analysis of financial problems of companies in a market environment, including the policy of financing, investments, the policy of payments to investors, decisions to purchase control and join other companies, spin-off, and restructuring of company divisions, regardless of its industry profile and legal form;
– mastering the skills and abilities to conduct calculations in practice and make financial decisions.
As you can see, this discipline is not easy to study as well as it is hard to deal with corporate finance assignments. But this problem can be solved. You can ask for corporate finance assignment help on assignmentshark.com. An expert in this discipline will help you with your homework professionally.
An example of the corporate finance task
The yield on an annual treasury zero-coupon bond should be 8%. The yield on a treasury zero-coupon bond with a set maturity of 2 years is 10%. Determine the true value of a 2-year corporate bond with a set face value of 10001 and a 5% annual coupon rate. Explain your investment strategy if the current price of a corporate bond is 90% of par. Determine the total yield to maturity of the corporate bond.
Solution. We have a market rate for zero-coupon bonds, which are risk-free, which allows us to find the current spot rates of return. We use spot rates to discount corporate bond flows. The prerequisite is that a corporate bond is similar in risk to government bonds. The value of a corporate bond is the sum of the present cash flows. The value of the bond should be 914.07. If the bond is currently trading at 90% of par, then its rate is 900. Thus, the bond is undervalued by the market. We use the current market rate to determine the total yield to maturity. The selection method here determined the yield at the level of 10.8%. This rate should be found analytically by solving a quadratic equation.
When solving problems and completing tasks, students should use the teacher’s lectures, mandatory and additional educational literature, as well as information from periodicals. Tasks and assignments are developed on the examples of the activities of different companies.
Student competencies for doing an assignment
If you want to do a corporate finance assignment successfully, you should have the specific competencies (PC):
- develop financial and economic indicators, which characterize the activities of corporations, including methods for their calculation (PC-1);
- analyze and assess existing financial and economic risks, draw up and justify the forecast of the dynamics of the main financial and economic indicators at the macro and micro levels (PC-2);
- assess the current, short- and long-term financial stability of the organization, including credit one (PC-3);
- independently carry out or manage the preparation of assignments and the development of financial aspects of design decisions and relevant regulatory and methodological documents for the implementation of prepared projects (PC-4);
- propose specific activities for the implementation of the developed programs and projects (PC-5);
- carry out the development of budgets and financial plans of organizations, including financial and credit ones, as well as calculations for the budgets of the budgetary system of the USA (PC-6);
- use the best methods of financial management for the valuation of assets, working capital management, the formation of capital structure and dividend policy, and decision-making on financing (PC-7);
- evaluate the impact of different investment decisions as well as financing decisions on the value growth of the company (PC-8);
- manage the financial services and departments of organizations of organizational and legal forms, including public authorities and local governmental, non-governmental, and international organizations, and temporary creative teams created to develop the financial aspects of new design solutions (PC-9);
- ensure the organization of work on the execution of developed and approved budgets (PC-10);
- provide consulting services to commercial and non-commercial organizations of organizational and legal forms on the issues of improving their financial activities (PC-11);
- conduct consulting studies of financial problems on the orders of economic entities, including financial and credit organizations, state authorities, and self-government (PC-12);
- carry out the preparation of work plans and programs for scientific research and development, the preparation of tasks for groups and individual performers (PC-13);
- develop theoretical and new econometric models of different studied processes, objects, and phenomena related to the sphere of professional financial activity, evaluate and interpret all results which were obtained during the study (PC-14);
- identify and conduct research on topical scientific problems in finance and credit (PC-15);
- identify and conduct research on effective areas of financial support for innovative development at the macro and micro levels (PC-16);
- identify and conduct a study of financial and economic risks in the activities of business entities to develop a risk management system (PC-17);
- carry out a study of the problems of financial stability of organizations, including financial and credit ones, in order to develop effective methods for ensuring financial stability, paying attention to the uncertainty factor (PC-18);
- interpret the results of financial and economic research in order to develop the financial aspects of promising areas for innovative development of organizations, including financial and credit ones (PC-19);
- analyze different financial statements and make sound investment, financial, and credit decisions (PC-20);
- own the techniques of proper financial planning and forecasting (PC-21).
Only if you can do all the listed actions will you be able to deal with your corporate finance assignments easily. That’s why we can assume that it is hard to cope with homework in this subject. However, as you already know, some services will gladly help you with your homework.