Essay On Corporate Finance - 806 Words

Corporate Finance in the age of Thinking Computers. Just like humans, computers can now learn and adapt, thanks to machine learning, a subfield in AI. With artificial neural networks to mimic those of the human brain, intelligent computers can learn from examples, meaning that no task specific programming is required. While machine learning technology is still at infant stages in most industries, it is making ground breaking milestones in the financial sector. Among the areas experiencing major transformations is corporate finance. AI, in general, has been proliferating in the financial sector, with a study by Oxford Economics showing high reception among financial executives. The study, which involved 1500 financial executives†¦show more content†¦With the high volatility in todays global economy and regulatory environment, financial executives need to move beyond the traditional annual budget cycle if they are to make well-informed decisions. Machine Learning has ensured this by making it possible to analyze huge chunks of data within split second, learn from it, and provide highly accurate real time information for decision making. Brown also notes that AI relies on live, integrated business data and therefore financial managers can leverage of information from other departments in a firm when making decisions. For instance, through the technology, financial managers can monitor how consumers are responding to a new product and update projections correspondingly. Similarly, the financial team can take advantage of the data from the human resource to identify compensation strategies that ensure employee retention and reduces turnover. In other words, automation through AI enables CFOs and other financial managers to get data insights from marketing, human resource, supply chain, and RD, for better financial decision making. Even better is the fact that through machine learning, the financial systems in a firm keep improving themselves to accommodate even the tiniest changes in data. AI and machine learning also have a significant role to play in helping companies meet regulatory and compliance requirements at a lower cost. As Steve Culp of AccentureShow MoreRelatedCorporate Finance Essay1150 Words   |  5 PagesCorporate Finance Essay Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project, but reluctant to cut dividends or to make a rights issue, which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It dealsRead MoreCorporate Finance Essay1908 Words   |  8 PagesSample Test_MT2_FINA 3101_summer_2013 ____ 1. Travis Corp.s bonds currently sell for $1,050. They have an 8% annual coupon rate and a 20-year maturity, but they can be called in 5 years at $1,120. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, what rate of return should an investor expect to earn ifRead MoreCorporate Finance Essay959 Words   |  4 PagesTo start any business activities in an organization or a group of it calls for the managers to decide on how to finance the whole project execution; managers are compelled to seek consultative meetings from which a lot of thoughts and strategic plans are laid down systematically. To start the business, owners or shareholders are required to make a choice and put attention to the existing multiple and differing financing options, terms, and conditions that require contractual ar rangements. It is,Read MoreEssay Corporate Finance1613 Words   |  7 Pages Why is corporate finance important to all managers? Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions. The primary goal of corporate finance is to enhance corporate value, without taking excessive financial risks. A corporations managements primary responsibility is to maximize the shareholders wealth which translates to stock price maximization. Corporate finance providesRead MoreCorporate Finance Essays7800 Words   |  32 PagesABC’s capital expenditures and its financing 9 2.3. Comparison of ABC’s capital structure with similar companies 10 2.4. Characteristics of the company influencing the leverage policy 11 2.4.1. Tax advantage 11 2.4.2. Corporate tax rate 11 2.4.3. Earnings before tax and interest 11 2.4.4. Interest rate 11 2.4.5. Credit rating 12 2.5. Pecking order theory 13 2.6. Optimal capital structure 13 3.Dividend 14 3.1. Dividend policyRead MoreEssay on The Bible And Corporate Finance2064 Words   |  9 Pagesï » ¿ The Bible and Corporate Finance People rarely associate religion with the business world or the finance industry, nor do they think religion can guide the practice.   From a logical standpoint religion and a firms operations do not correlate. From a societal view people see good religious peoples businesses fail while godless industries thrive.   The question usually asked is how does the Bible apply to business world?   The real question should be how could the Bible and God guide me in my professionRead MoreCorporate Finance Essay examples4203 Words   |  17 Pages7*:(*$11-885A13*.--+-*$3-).$).$2-*@3B%-)5*$%-23%4-)52-)23?+$*$)*+*2@-+93)-4+*-=7-$ 4226 | Monmouth, Inc. 10 Exhibit 7 Information on United States Capital Markets I.! Interest Rates in May 2003 30-Year U.S. U.S. Corporate Bonds Rated Treasury Bonds AA A BBB BB 4.10% 4.52% 5.07% 6.07% 7.96% II.! Estimated Market Risk Premium = 6% over 30-Year U.S. Treasury Bonds III.! Median Values of Key Ratios by Standard Poors’ Rating Category AAA AA A BBB BB B Times InterestRead MoreEMI Corporate Finance Essay7263 Words   |  30 Pages â€Å"IFPI: 07 Digital Music Report,† January 2007. This case was written by Elizabeth W. Shumadine (MBA ’01), under the supervision of Professor Michael J. Schill, based on public information. Funding was provided by the L. White Matthews Fund for Finance case writing. Copyright  © 2008 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced,Read Moreprinciple of corporate finance solution Essay1401 Words   |  6 Pagesï » ¿CHAPTER 2 How to Calculate Present Values Answers to Problem Sets 1. If the discount factor is .507, then .507*1.126 = $1 2. 125/139 = .899 3. PV = 374/(1.09)9 = 172.20 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1,003 5. FV = 100*1.158 = $305.90 6. NPV = -1,548 + 138/.09 = -14.67 (cost today plus the present value of the perpetuity) 7. PV = 4/(.14-.04) = $40 8. a. PV = 1/.10 = $10 b. Since the perpetuityRead MoreCorporate Finance Exam Mba Essay3200 Words   |  13 Pagesover other types of firms. One of them is the unlimited liability.Answer | | | | | Selected Answer: |   False | Correct Answer: |   False | | | | | * Question 4 1 out of 1 points | | | Two important financing decisions for a corporate financial manager are debt policy decision and dividend policy decision. Debt policy asks what level of debt is best for the firm. The dividend policy asks what dividend payout ratio is best for the firm.Answer | | | | | Selected Answer: |