APPLIED FINANCE Home Work Help
One of the most interesting areas of Finance is Applied Finance. This deals with judicial financial decision making. Here you will have to evaluate the resources you have and in making proper planning to achieve your objectives in the light of that plan.Applied finance has now become one of the most studied fields in the academia.There are a number of areas covered under the heading of the applied finance and those are given here:
- Financial Statement Analysis
- Statistics for Business & Economics
- Corporate Finance
- Portfolio Management
- Financial Risk Management
- International Financial Management
- Financial Institutions and Markets
Here we will have to understand the basics of all these topics.An explanation of some of these topics is being given here.
Financial Statement Analysis
The financial statements are aimed at providing you an analysis of the finances. In simple words, these statements let you know what is happening with the finances in your company.There are a number of ways to know your financial standings.Mostly people use Income statement, balance sheets, cash flow statements in order to know what is going on with the finances in the company.The balance sheets let you know what are your assets or liabitlies.Income statements, on the hand, tells you whether you are in profit or not. The cash flow statements let you know that what cash comes in and how much goes out of the company.
The discipline of corporate finance can be divided into technical decisions and long term and short term. Decisions of the capital investment are long-term choices on which projects should receive funding, if an investment fund with equity or debt, and whether to pay the dividends to the shareholders. Moreover, short-term decisions are focused on short-term balance of the assets and liabilities. The goal here is about the management of cash the stocks, and short-term financing.
The term is often associated with corporate finance often the investment banking. The typical role of an investment banker to assess the financial needs of a company and raise the kind of appropriate capital to meet those needs themselves. Thus, corporate finance may be associated with transactions in which capital was raised to create, develop, grow and acquire businesses.
Financial Risk Management
The objective of risk management is to reduce different risks relating to a preset level to a socially acceptable level. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. On the other hand, it involves all the resources available for humans or, in particular, a risk management entity (person, staff, organization).
Thus, enterprise risk management is a process performed by the board of an organization, the management and staff of this organization. It is applied in establishing strategies across the enterprise, designed to identify potential events that may affect the entity and manage risk to provide reasonable security and integrity regarding the achievement of objectives.