Explore BrainMass

Explore BrainMass

    The Three Most Important Topics of Corporate Finance

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Could you describe the 3 most important topics of corporate finance? Perhaps you can pick 3 that would be most useful to someone's career in business?

    © BrainMass Inc. brainmass.com March 5, 2021, 12:38 am ad1c9bdddf

    Solution Preview

    Topics in Corporate Finance:

    In times of uncertainty, one of the most central elements of corporate finance is a "sensitivity analysis". This has to do with the initial investment decision and is done before an investment is made or a project approved. The central issue here is the use of a variable that will change as the analysis is run time and again. This could be anything that might impact the project in the future: inflation, regulatory changes, taxes, local government initiatives, etc. Here, the value of that variable changes and the present value of the project is then recalculated. Some of the basic principles here are to model that which seems the most likely and to always remember that variables never exist in isolation. When one is affected, the others are as well (Curtiss, ...

    Solution Summary

    The solution examines the three most important topics of corporate finance.