Corporate finance Gol teamLOGO Presented by : Hatem Ali CPM
Contents Finance and Source of finance financial statement Net present value (NPV) Internal rate of return Pay back workshop Company Logo
Finance The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial systems. which Some prefer to divide finance into three distinct categories: public finance, corporate finance and personal finance. Company Logo
Source of finance
Financial statement Income statement. that measures a companys financial performance over a specific accounting period Balance sheets. that summarizes a companys assets, liabilities and shareholders equity at a specific point in time. Cash flow statement. which shows the amount of cash generated and used by a company in a given period. Cash inflows usually arise from one of three activities - financing, operations or investing Company Logo
How to start financial plan Financial plan Cost Expected return (initial investment) 5 years of expected return . Operation cost Rent Wage Any expenses
Financial plan Net present value (NPV): the sum of present value of all expected incremental cash flow. Internal rate of return (IRR): The discount rate that’s makes the following relationship hold: PV (inflow)= PV (outflow) Pay back period: the number of years it takes to recover the initial cost of investment.