Talk:Corporate finance/Archives/2012

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Lead section

"The two are related in that firm value is enhanced when return on capital, a function of working capital management, exceeds cost of capital, which results from the longer term, capital decisions."

This is pretty confusing to me. It seems that return on capital and cost of capital are interrelated and that they are both impacted by long-term decisions and short-term decisions, and by financing decisions and investment decisions.
If there are no objections, I am tempted to delete this sentence, since I don't know how to clarify it and it is not followed up on elsewhere. Thanks --Chris vLS 20:08, 13 Dec 2004 (UTC)
It is a valid sentence, so don't delete it. I can't think of a way to make it more clear at the moment, but I will see what I can do later if someone else doesn't improve it. - Taxman 22:10, Dec 13, 2004 (UTC)

Im not sure exactly what you dissagree with. That a firm's value is enhanced when its return on capital is greater than its WACC I think is uncontrovertial. Oh, I see the problem. Would you feel better if it was changed to say "PRIMARILY a function of working capital management" and "PRIMARILY results from longer term capital decisions"? That allows for the effect that working cap. man. might have on the WACC and also the effect that capital decisions will have on ROE. Even that isnt quite right, maybe it should just be deleted as you suggest. mydogategodshat 22:25, 13 Dec 2004 (UTC)

Currently:

Corporate Finance is the specific area of finance dealing with the financial decisions corporations make, and the tools and analyses used to make the decisions. The discipline as a whole may be divided between long term, capital investment decisions , and short term, working capital management. The two are related in that firm value is enhanced when return on capital, a function of working capital management, exceeds cost of capital, which results from the longer term, capital decisions. Corporate Finance is closely related to managerial finance, which is slightly broader in scope, describing the financial techniques available to all forms of business enterprise, corporate or not.

Proposed:

Corporate Finance is the specific area of finance dealing with the financial decisions corporations make, and the tools and analysis used to make the decisions. The discipline as a whole may be divided between long-term and short-term decisions and techniques. Capital investment decisions comprise the long-term choices about investments, financing, and dividend policy. Short-term corporate finance decisions are called working capital management. The two share the same goal of enhancing firm value by ensuring that return on capital exceeds cost of capital. Corporate Finance is closely related to managerial finance, which is slightly broader in scope, describing the financial techniques available to all forms of business enterprise, corporate or not.

It's not perfect, would like something that explains, rather than rattles off terms, but it is better that current, I think. Return on capital and cost of capital are the function of both long and short term decisions, so the current text is misleading, I think.

Thoughts? --Chris vLS 19:37, 14 Dec 2004 (UTC)

Ok, second try. A bit long, but it actually summarizes the structure of the article now.

Corporate finance is the specific area of finance dealing with the financial decisions corporations make, and the tools and analysis used to make the decisions. The discipline as a whole may be divided between long-term and short-term decisions and techniques. Both share the same goal of enhancing firm value by ensuring that return on capital exceeds cost of capital. Capital investment decisions comprise the long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders. Short-term corporate finance decisions are called working capital management and deal with balance of current assets and current liabilities by managing cash, inventories, and short-term borrowing and lending (e.g., the credit terms extended to customers).
Corporate finance is closely related to managerial finance, which is slightly broader in scope, describing the financial techniques available to all forms of business enterprise, corporate or not.

Chris vLS 21:23, 14 Dec 2004 (UTC)

I see no problem with the new wording. mydogategodshat 02:28, 15 Dec 2004 (UTC)
Thanks! Made it so. --Chris vLS 21:35, 17 Dec 2004 (UTC)

I changed the word "reduce" to "managing" risk in the lead paragraph because reducing risk is one strategy in managing risk. Also, the section below which expands upon the lead paragraph is about risk management.--Bmarmie (talk) 03:22, 30 December 2008 (UTC)

Corporate finance category

This may seem a little pithy, but the "corporate finance" photo shows midtown Manhattan looking north, whereas most of the corporate finance that happens in Manhattan takes place downtown. Surely, a picture of Wall Street or the Bull on Broadway or an aerial shot of the financial center would be more appropriate? --Cww 15:22, 12 September 2007 (UTC)

External links

I've removed the following external links from this article so that they can be discussed here. Per WP:EL, I don't believe any of them belong in this article as external links, but they may have been used as references for statements in the article. If so, please use reference tags to link the source(s) to the statements in the article.

Hi Sue. I would say, based on What should be linked #3, that these are "Sites that contain neutral and accurate material that cannot be integrated into the Wikipedia article due to... amount of detail." and should therefore be reinstated. Fintor 07:21, 21 May 2007 (UTC)
Hi, Fintor. See WP:EL Links normally to be avoided, which includes "Sites that are only indirectly related to the article's subject: the link should be directly related to the subject of the article. A general site that has information about a variety of subjects should usually not be linked to from an article on a more specific subject. Similarly, a website on a specific subject should usually not be linked to an article about a general subject. If a section of a general website is devoted to the subject of the article, and meets the other criteria for linking, then that part of the site could be deep-linked." Also take a look at Wikipedia is not a repository of links #1. --SueHay 03:36, 22 May 2007 (UTC)

General

Valuation and Capital Budgeting

Capital Structure and Dividend Policy

Working Capital Management

Real options

Decision Tree Analysis

Financial risk management

Related Professional Qualification

END OF LIST

--SueHay 23:35, 19 May 2007 (UTC)

Corporate Finance

Hello WP users, My name is Daniel Szafran. Although I am new to Wikipedia, I bring with me many years of background in the Financial Industry as a Controller. I am looking to provide much of my experience and knowledge to the Wikipedia Community.

Among my list of improvements, I will be focusing on Corporate Finance, Leasing, Section 179 and similar topics.

I will be further updating this page as I have the time to put in my own words.


If anyone has any questions about Financing or the industry in general please feel free to ask on my talk page.

I look forward to building this great wealth of knowledge, known as Wikipedia.

Daniel Szafran (talk) 20:50, 4 April 2008 (UTC)

kenneth marks book

User:Khmarks, whether or not you are a professor is irrelevant. It is fairly obvious that you are the same person as the author of the book you are inserting into many many finance articles. Unless the book has a good reason for being in the article - ie it is itself notable, or it is actually cited in the article - you can't just put it in. Neither of these are the case. You are simply spamming a number of pages with your book, and this is unacceptable. Mitsuhirato (talk) 01:24, 7 September 2009 (UTC)

Related professional qualifications

Should we reintroduce this section? Or do we retain User:Flowanda's edit: "Removed non-notable section and internal links; not an article about study or degree"?

The text was:

Qualifications related to the field include:[citation needed]
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