About This Chapter
Basics of Corporate Finance - Chapter Summary
This chapter ensures you're able to cover the basics of corporate finance from any convenient location with an Internet connection. Strengthen your knowledge of fair value, capital structure and much more from home or on-the-go. Complete this chapter as your schedule permits to feel confident in your ability to do the following:
- Share the definition and fundamentals of corporate finance
- Explain how to compute and interpret return on investments
- Differentiate between short- and long-term interest rates
- Define capital structure, and discuss costs associated with capital structure components
- Describe fair value, and explain how it is measured
Enjoy the convenience of having informative lessons, self-assessment quizzes and a practice exam available in one location. All of these resources make the process of studying corporate finance basics easier than ever. Clarify or gain additional knowledge about corporate finance by utilizing the Ask Our Experts feature in the Dashboard. Take advantage of around-the-clock accessibility that makes it easy to fit your studies into the busiest schedule.
1. What Is Corporate Finance? - Definition & Fundamentals
This lesson will introduce the topic of corporate finance and its effects on a corporation and its shareholders. It will discuss capital funding sources and provide an example of a corporation needing to use capital funding for improvements.
2. Computing and Interpreting Return on Assets
There are a number of ratios that can be calculated by information found on the financial statements. In this lesson, you will learn about return on assets.
3. Short vs. Long Term Interest Rates: Differences & Significance
After reading this lesson, you will understand why long-term interest rates are usually higher than short-term interest rates. You will also see some examples of why this makes sense.
4. Capital Structure & the Cost of Capital
In this lesson, we'll define capital and a firm's capital structure. We'll also discuss the costs associated with each component in the capital structure and learn about the concept of risk and return.
5. What is Fair Value? - Definition, Principle, Measurement & Examples
Determining the value of an item, asset, stock, and even a company can be a difficult task. This lesson reviews the importance of understanding fair value and how to arrive at the fair value of items.
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Other chapters within the Certified Management Accountant (CMA): Study Guide & Test Prep course
- Financial Statements Overview
- Financial Valuation, Recognition & Measurement
- Financial Strategic Planning
- Budgeting Concepts for Accountants
- Forecasting Techniques in Business
- Budgeting Methodologies in Accounting
- Annual Profit Planning
- Financial Projections
- Cost & Variance Measures in Performance Management
- Responsibility Centers & Reporting Segments
- Performance Measurement in Accounting
- Cost Measurement & Systems
- Overhead Costs
- Understanding Supply Chain Management
- Business Process Improvement
- Governance, Risk & Compliance in Accounting
- Accounting Systems Controls & Security Measures
- Accounting & Enterprise Information Systems
- Data Governance
- Technology-Enabled Finance Transformation
- Data Analytics
- Basic Financial Statement Analysis
- Profitability Analysis
- Financial Statement Special Issues
- Capital Management Overview
- Corporate Restructuring
- International Finance Practices
- Business Decision Analysis
- Risk Management for Business
- Investment Decisions
- Accountant Professional Ethics
- Certified Management Accountant (CMA) Flashcards