Corporate Finance-AI-powered corporate finance guidance

Example

A company is considering purchasing new machinery to increase production capacity.

Scenario

In this case, corporate finance would analyze the costs and benefits of purchasing the machinery, estimate the expected cash flows generated from increased production, and assess whether the investment is likely to generate an acceptable rate of return. They may use tools like net present value (NPV) or internal rate of return (IRR) to make the decision.

Example

A startup needs to raise funds to scale operations, and it's deciding between issuing equity or taking on a loan.

Scenario

Corporate finance evaluates the proportion of debt versus equity a company should use to finance its activities. In this scenario, the finance team would assess the cost of debt, potential dilution of ownership through equity, and the impact of each option on the company's financial health and profitability.

Example

A retail company must manage its cash flow to ensure it can cover its short-term liabilities, like paying suppliers and employees.

Scenario

Corporate finance would ensure the company maintains sufficient liquidity to meet short-term obligations while also maximizing the efficiency of working capital. This may involve managing inventory levels, optimizing payment terms with suppliers, and improving the collection of receivables.