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Corporate Finance

What Should You know About Corporate Bonds?

What Should You know About Corporate Bonds?

Corporate bonds are bonds issued by a corporation so that the corporation will be able to raise money when it needs to expand its business. The term is typically applied to longer-term debt instruments that have a maturity date of at least one year. A shorter term corporate bond is sometimes known by the term “commercial paper.”
The term “corporate bond” is sometimes inaccurately used to refer to any bond that is not issued by a government. However, when the bond is not issued by an actual corporation, the bond should not technically be known as a corporate bond. Bonds of local authorities or supra-national organizations are never considered to be known as corporate bonds.
Often, a corporate bond will be listed on major exchanges, in which case the corporate bond becomes known as a listed bond. The coupon, or interest payment, of corporate bonds are usually taxable. However, in some cases a corporate bond may have a zero value coupon with a high redemption value. Despite being available on exchanges, most corporate bond trading is decentralized, dealer-based, and performed in over-the-counter markets.
A corporate bond may feature an embedded call option, which allows the corporate bond to be redeemed before its maturity date, though others offer the opportunity to transform the corporate bonds into equity.

Facts About Corporate Bond Rates

Facts About Corporate Bond Rates

Corporate bond rates are only of interest to individuals who engage in the trade and sale of these corporate bonds. Corporate bond quotes which list the corporate bond rates are given when the corporate bond is initially issued.
Corporate bond rates are affected by the fact that corporate bonds, even one issued by a well-established pillar of the community, carry a higher risk of default than many of the other kinds of bonds. As a result the corporate bond quotes issued when soliciting purchasers of these bonds are forced to issue higher rates in order to justly compensate investors for taking these risks.
However, not all corporate bond quotes carry the same risk. Depending on the corporation that issued the bond, the current market conditions, the government against which the corporate issuer is being compared, and the rating assigned to the company, the corporate bond rates can vary widely. However, once the bond is issued, the corporate bond rates are only significant for individuals who attempt to buy these corporate bonds through an exchange or in direct, over the counter purchases. Since corporate bond quotes vary, individuals trading bonds may attempt to exchange corporate bonds in order to find one with a more favorable rate.
Corporate bond rates may be judged based on the value of the corporate bond’s coupons.

Principles of Corporate Finance

Principles of Corporate Finance

Two of the most common corporate finance textbooks are Principles of Corporate Finance and Essentials of Corporate Finance. Both corporate finance textbooks are published by McGraw Hill Higher Education. Recent editions of both corporate financial textbooks that have been published take into account the recent economic downturn.
Essentials of Corporate Finance is written by Stephen A. Ross of the Massachusetts Institute of Technology, Randolph W. Westerfield of the University of Southern California, and Bradford D. Jordon of the University of Kentucky, Lexington. Essentials of Corporate Finance attempts to break the essential elements of corporate finance into a form that can be understood by a broad audience. 
Essentials of Corporate Finance is a condensation of Fundamental of Corporate Finance, Standard Edition, by the same authors, and retains the same three themes: an emphasis on intuition, a unified valuation approach, and a managerial focus.
Principles of Corporate Finance is the leading international corporate finance textbook. This book describes the theory and practice of corporate finance. Principles of Corporate Finance is interspersed with the use of financial theory in order to solve practical problems and in a response to change by showing how and why managers act the ways they do.
Recent editions of Principles of Corporate Finance have been accompanied by a homework management system which can be valuable to students learning about corporate finance. Besides being valuable to students, Principles of Corporate Finance also is a valued reference material for many practicing financial managers. Principles of Corporate Finance is written by Richard A. Brealey of London Business School, Stewart C. Myers of Massachusetts Institute of Technology, and Franklin Allen of the University of Pennsylvania.

The Business Use Of Corporate Accounting

The Business Use Of Corporate Accounting

Corporate accounting is the branch of mathematical science that is concerned with discovering the causes of a business’ success or failure. Corporate accounting is concerned with communicating financial information about a business to the company’s shareholders and managers.
The most typical method of communicating this information is through financial statements which show in monetary terms the economic resources in the possession of the company. The primary concern of corporate accounting, and the reason it is sometimes considered an art rather than a science, lies in selecting the information that is both relevant and reliable.
The three branches of accountancy are accounting, bookkeeping, and auditing.
The American Institute of Certified Public Accountants defines corporate accounting as “the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof.” One of the primary issues of accounting is keeping track of corporate loans, whether these corporate loans are incoming corporate loans or corporate loans made to other corporations.
At its beginning, accounting existed in order to assist the memory of businessmen. Corporate accounting only began to resemble its modern form after double-entry bookkeeping and joint stock companies, the first common types of corporations, developed. These joint stock companies led to the three current branches of corporate accounting, with management accounting handling internal purposes, financial accounting handling external affairs, and independent, external auditors attesting that the management and financial accounting reports were accurate and adhered to regulations.

Corporate Finance Overview

Corporate Finance Overview

Corporate Finance

One of the primary concerns of any company is corporate finance. Whether a high power finance corporation or a corner store, the same corporate finance principles apply, although for the corner store the principles are technically known as managerial finance. Whether faced with high or low power finance, a corporation of all sizes has to be concerned with both long and short term corporate finance planning.

Fundamentals of Corporate Finance
Fundamentals of Corporate Finance, Standard Edition, is one of the premiere corporate finance books. Fundamentals of Corporate Finance, Standard Edition, is written by Stephen A. Ross of the Massachusetts Institute of Technology, Randolph W. Westerfield of the University of Southern California, and Bradford D. Jordan of the University of Kentucky-Lexington.

Principles of Corporate Finance
Principles of Corporate Finance and Essentials of Corporate Finance are two prominent corporate finance text books. Essentials of Corporate Finance is written by Stephen A. Ross of the Massachusetts Institute of Technology, Randolph W. Westerfield of the University of Southern California, and Bradford D. Jordon of the University of Kentucky, Lexington. Principles of Corporate Finance is written by Richard A. Brealey of London Business School, Stewart C. Myers of Massachusetts Institute of Technology, and Franklin Allen of the University of Pennsylvania.


Corporate Accounting
Corporate loans are a primary focus of corporate accounting. Corporate accounting can focus on corporate loans made to the corporation, as well as corporate loans or credit extended by the company to other corporations.

Things You Should Know About Corporate Finance

Things You Should Know About Corporate Finance

Corporate finance is a specialty in finance that is concerned with the financial decisions that must be made by businesses. Corporate finance also accounts for the tools and analysis that a business should employ before reaching those decisions.
The main goal of corporate finance is to allow the company to maximize its corporate value while minimizing the financial risks to which the firm is exposed. Although there are theoretical differences between corporate finance and managerial finance, the first being concerned only with a high or low power finance corporation, the principles of each could be applied to the other.
A power finance corporation can use corporate finance to make both long and short term decisions, each of which require different techniques. A lower power finance corporation is forced to be more concerned with short term corporate finance, such as the balance of current assets and current liabilities. A more high power finance corporation which has enjoyed some success is more readily able to be concerned with long term corporate finance since they are more likely to have a cushion for their actions.
Corporate finance is associated with investment banking. An investment bank is used to evaluate a company’s financial needs and to raise the capital that is both an appropriate type and is able to satisfactorily meet those needs.