About This Chapter
Understanding Corporate Finance - Chapter Summary
This chapter is designed to boost your comprehension of corporate finance quickly and effectively. Our top instructors have developed entertaining lessons you can access any time to better understand corporate governance, capital investment, risk management in business, the capital structure decision-making process and much more. Once you've completed this chapter, you will be able to:
- Describe the responsibilities and role of financial managers
- Discuss corporate financial health and financial management decisions
- Define dividends and describe cash dividends and dividend payments
- List components of a dividend policy and examples of projected cash flow
- Identify and describe types of financial risk
- Provide details about the cost of capital and capital structure
- Share the definition of working capital management
- Exhibit knowledge of corporate expansion and restructuring
To get started, pick your first lesson in this chapter, review its contents, and take the accompanying quiz if you choose. When you're finished, scroll along the right-hand sidebar to view additional lessons in any order you decide. The Dashboard lets you to track your progress through this chapter and submit lesson topic questions to our experts. Before the day of your test, don't forget to take the chapter exam to test your overall knowledge of corporate finance.
1. What is Corporate Governance? - Definition & Key Players
This lesson defines and discusses the concept of corporate governance, identifies the key players involved in corporate governance, discusses the roles of these key players, and identifies the primary types of issues faced with regard to corporate governance.
2. The Role and Responsibilities of Financial Managers
Financial managers play a pivotal role in the success of companies. In this lesson, you'll learn about the duties and responsibilities of financial managers. You'll also have a chance to take a short quiz after the lesson.
3. Financial Management Decisions & Corporate Financial Health
This lesson will introduce you to the importance of financial management. Decisions made in four important areas will affect the future health of the business.
4. What Are Dividends? - Investing in Stocks
Many people are interested in stock investment, and there are a few basic terms investors and business people should understand. This lesson explains dividends, common stock and preferred stock.
5. Cash Dividends & Dividend Payment
When a company decides to pay a dividend to shareholders, they first have to decide what type of dividend to pay. In this lesson, we'll examine the most common types of dividends and look at the timeline for cash dividend payments.
6. What is a Dividend Policy? - Overview, Components & Goal
In this lesson, we will discuss the major components of a corporation's dividend policy, and we will explore three different forms that dividend policies can take - residual, stability, and hybrid.
7. Project Cash Flow: Analysis & Examples
When a company is considering a new project or investment, it must have some method to evaluate whether to proceed. In this lesson, you'll learn how relevant cash flows can help with this decision.
8. Risk Analysis & Risk Management in Business: Overview, Objectives & Comparison
A successful business requires careful attention to the allocation of resources and, just as important, to the degree to which those resources are exposed to risk. In this lesson, we'll discuss the importance of risk analysis and management in business.
9. Financial Risk: Types, Examples & Management Methods
In this lesson, you will explore the various types of risks faced by a business and understand how financial risk is different from other types of risks. Then, you will learn about the different types of financial risks and methods to manage them.
10. 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.
11. What is Working Capital Management? - Definition & Examples
Have you ever wondered how a company manages its money and pays its bills? Working capital management is how companies are able to manage finances and continue operations.
12. Corporate Expansion: Mergers and Acquisitions
Corporations can grow in two different ways: through expansion of their current business or through mergers and acquisitions. In this lesson, you'll learn about mergers and acquisitions. A short quiz follows.
13. Corporate Expansion & Restructuring: Types & Impacts
This lesson will look at the various ways in which companies expand or break up, and what may cause them to do this. We'll also explore why a company may want to buy other companies or change its production.
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Other chapters within the Chartered Financial Analyst (CFA): Exam Prep & Study Guide course
- About the CFA Exam
- Ethical & Professional Standards in Finance
- Quantitative Methods in Finance
- Overview of Economics in the Financial Market
- Domestic Economic Concepts
- International Trade & Currency Exchange
- Overview of Financial Reporting & Analysis
- Types of Financial Reporting & Analysis
- Equity Investments
- Fixed-Income Securities
- Derivatives in Finance
- Alternative Investments
- Overview of Portfolios
- Portfolio Management Strategies
- Portfolio Performance Analysis