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6 Important Terms Needed For Finance Homework Help

3 Mins read

Finance homework is a competitive task for a student. It involves many terms and formulas which are the mixture of calculations and theories. Students often take finance homework help from online means or different service providers. But most students do not put their efforts to learn the financial terms. Some important terms are helpful which can make a student able to solve multiple kinds of finance homework. These terms are useful for getting finance homework help from you.

  • Financial markets
  • Business finance
  • Corporate finance
  • Taxes
  • Stock valuation
  • Financial statement analysis

Financial markets

As the name shows financial markets are such a marketplace that offers the facility for the sale and purchase of assets like derivatives, bonds, foreign exchange, or stocks. This market has different names used in different places. Some call it Wall Street while somewhere it is called as Capital market. But all of its names define the same term and semantics. In simple words, these are the places that are used by corporates and investors to raise their investments in different businesses and gain profit on business growth.

Business finance

Finance is the basic of business. The term business finance is defined as the money or amount required to fulfill the business needs. This term is useful to do my accounting homework. In finance, this money is called capital which is required to start the business and also to continue it. Two basic types of capital are the following.

  • Fixed Capital: As the name shows that it is the fixed amount that is needed compulsory for a business. It is an investment through which business operations cannot be successful. This fixed capital can be for lands, buildings, or needed instruments and machinery. The fixed assets are not changeable and cannot be removed from the business even for a short period. 
  • Working Capital: It is also called as circulating capitals. These are the continuous investments that are required over time. In the balance sheet, this amount can be derived from a formula that is the difference between the current assets and current liabilities. It commonly consists of cash used for paying bills, taxes, or dividends.

Corporate finance

This term of finance is important to deal with sources of funding and capital structure of the business. This is also used to deal with the actions of managers that they take to enhance the reputation of corporate to the shareholders. This term is different from managerial finance because managerial finance is the study of the financial management of the corporates. Corporate finance relates to making decisions for the investments of corporate. It manages and deals with all short financial decisions that can somehow affect the operational activities.

Taxes

Taxes are such charges which are imposed by the governments mostly upon the corporates or any legal entity. These charges are collected to utilize them for the country benefits and providing funds on numerous public expenditures. If an entity does not pay for the taxes the punishments are applied by the law enforcement agencies and judiciary.

Stock valuation

It is the procedure to determine the intrinsic value of a share of common stock of a company. The main purpose of this valuation is to find the value of a common share. There are two commonly used ways to do this valuation.

Discounted cash flow

It is an absolute method to find the stock value by discounting future cash flows at such rate which could reflect the risk inherent in the stock. That is why it is called a discounted cash flow. This cash flow includes some different models

    • Constant Growth Dividend model
    • Multi Growth Dividend model
    • Free cash flow model

Relative Valuation

In this type of valuation, the market value of comparable stocks is used to determine the value of the stock. Different ratios like price to earnings, price to sales, or price to book ratio are used for calculations. Then the average value is multiplied with earnings per share. Thus from stock’s relative value sales per share or book per share are obtained.

Financial statement analysis

Financial statement analysis is a procedure to analyze the financial statements of the company that are used to make decisions. Many financial evaluator especially external stakeholders utilize this term to learn about the overall health of the corporate. These are also used to evaluate the performance of the finance of the company. Internal managers use this analysis to monitor the management performance for finance. For a complete analysis, the study of financial statements is compulsory which are following

Balance sheet: It is the company report which consists of assets, liabilities, and shareholder’s equity.

Income statement: This statement deals with finding profits after paying for all the liabilities and expenses.

Cash flow statement: This statement defines the flow of cash used for certain operations and financial activities.