Finance Nature Valuation Assignment Help
Nature of finance explains the scope of finance, its functions, concepts of value and return. It describes the future value along with value of cash flow. Time preference for money is also a part of it. According to studydaddy topics of present value with brief discussions give the detail and summary of value of a single cash flow. Bonds and shares are also having a deep involvement in the study of finance. It includes features of bond and shares, valuation of preference and ordinary shares.
There are also so many options for financial management. Combinations of put, call and share options are included in it. Factors determining option value, binomial model for option value is one of the best examples for it.
The investment and financing decisions are unavoidable and continuous. In order to make them rationally, the firm must have a goal. It is generally agreed in theory that the financial goal of the firm should be shareholders’ wealth maximization (SWM), as reflected in the market value of the firm’s shares. According to homework answers experts in this section, we show that the shareholders’ wealth maximization is theoretically logical and operationally feasible normative goal for guiding the financial decision-making.
Some of its main topics are:
1. Concepts of value
2. Definition of profit
3. Equity capitalisation rate
4. Financial goal
5. Future value
6. Multi-period compounding
7. Net present value
8. Options and their valuation
9. Ordinary and preference shares
10. Present value
11. Time preference for money
Shareholder Value Assignment Help
In this particular aspect the main objective is to review the implications of financial theory for the corporate finance policies which are the main attribute of the shareholder. The value of shareholder in management plays an important role which also implies it through corporate governance. Corporate governance emphasizes the need for a linkage between the financial policies and strategic management. It focuses on the shareholder value creation. Thus, shareholder value is:
Shareholder value = market value of the firm – market value of the debt
The market value of the shareholder’ equity is directly observable from the capital markets. This will develop a framework for the shareholder value analysis. In this aspect the concept of economic value added (EVA) and market value added (MVA) will have been discussed and highlighted the features of good corporate governance. The theory of finance has been undergone fundamental changes over the past three decades or so. Finance is no more a descriptive discipline; it is now viewed as a specialised branch of applied micro-economics, and the emphasis now is on the development of formal models, using sophisticated mathematical and econometrics tools. According to studydaddy this approach seems to have created some gap between theory and practice. It is also felt that the finance theory is not complete and meaningful without its linkage with the strategic management. Therefore, there is a need for indisciplinary interactions.