Examples of Corporate Finance Activities
1. Financial Modeling: Financial modelling is the procedure of building mathematical representations of company’s financial operation. The representation is used to determine what investments to make, how to finance them, and for strategic planning. The financial model of an organization is typically made of the cash flow forecast, asset valuation, and analysis of alternative scenarios.
2. Bank Loan: Applying for a bank loan means asking the money from a credit institute for covering running costs, infrastructure investment or growing business. Businesses reason on interest rates, repayment term, and mortgage terms with the banks.
3. Initial Public Offering (IPO): For a company to go public is that privately owned company is giving its shares to the public for the first time. It allows businesses to have funds through allowing investments, which in exchange for ownership stakes, generally in the form of shares of stock, investors are able to provide assistance for trading among the current stockholders, and provide funds for growth at the same time.
4. Refinancing and Renegotiating All Debts and Payments: Refinancing means the replacement of the old debt obligations by the new debt obligations intended as less unfavorable loans issued by different creditors like banks which can be in the form of the lower interest rate or longer repayment period.