Corporate Finance
Author | Bert Spector |
Profession | Professor of Strategy at Northeastern University |
Pages | 1-15 |
Corporate Finance 1
CHAPTER1
CORPORATE FINANCE
Capital flows into and out of every corporation. Customers buy products
and services, banks loan money, and investors purchase stocks and bonds.
All that occurs while the corporation keeps its daily operations going and
invests in future growth. Making decisions about how to raise that capi-
tal and then spend, record, and report all resulting financial transactions
requires experts: financial managers and accountants.
At the same time, it is difficult to imagine any significant interaction
between corporate executives and legal counsel that does not touch upon some
equally signif icant financial tra nsaction. In these transactions, it is vital that
all sides have a clear understanding of one another. Just as attorneys have a
specialized vocabulary, financial ma nagers and accountants often seem to be
speaking their own lan guage. “Weighted average cost of capital,” “net present
value,” “retained earnings,” and “generally accepted accounting practices”
are just some of the many terms you are likely to run across in your day-
to-day dealings. This chapter provides an overview of the topic of corporate
finance designed to e ase transactions between financial experts and counsel.
Managing Finances
How to raise capital and then spend it: these are the two matters that most
concern financial managers. Let’s look at each one in turn.
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
