Corporate Finance Assignment: The Major Sources to Draw Capital From

Corporate finance is a crucial area of the management studies that deal with the financial activities of a company. The objective, however, is to maximize the shareholder's value and to do so one needs to make a number of short-term and long-term decisions, financial planning and proper implementation of various financial strategies. Starting form capital budgeting to investment banking, everything falls under this area of study. So drafting a corporate finance assignment may be a bit harder than you might have thought.

Before you start working on your assignment on corporate finance, you need to learn about the major sources where your company can draw capital from. Generally, there are three major sources which every corporate house draw their capital from, but if you aren’t familiar with them, you may require corporate finance assignment help from the experts assignment maker. But you can get a decent idea about those sources here as well.

1.       Debt capital:

A company can borrow money to fund a new project or to sustain an existing project. The borrowed capital can come from a number of sources, including bank loans, mortgage or even bonds issued by the company. This sort of capital usually comes with a certain percentage of interest, which should be paid to the source regularly. A lot of students require assignment help in managing this type of capital as it can be confusing at times.

2.       Equity capital:

A company can get a significant amount of capital by selling the shares of the company in the capital market. Since the market value of the shares varies from time to time, a lot of shareholders show interest in investing in the shares of a company.

3.       Preferred stock:

Preferred stock is slightly different from the regular stocks that are used for capital. It works as an equity security. It carries a promise of dividend with no voting rights in the financial decisions of the organization. This may seem confusing at times. So consulting an expert for this type of capital will be a good idea.

In fact, it is always wiser to get the necessary advice from an expert before working on an assignment in corporate finance.