Issues in Corporate finance group coursework Essay

Issues in Corporate finance group coursework - Essay Example This implies that managers of modern corporations are judged by the level of the financial strategies they undertake in improving the commercial interests of the investors. In measuring the effectiveness of the financial strategies undertaken by the management, financial reviews of asset utilisation, dividend payout, profitability, solvency level, and liquidity are undertaken. This range of financial measures helps in demonstrating the attractiveness of given corporations in enhancing the wealth maximization of the investors. This is because the measures help in predicting the potential of the various firms in surviving and remaining profitable in the market to increase the wealth of the investors. This paper reviews the financial strategies undertaken in four public traded companies across different markets globally. The four corporations reviewed include 21Vianet Group Incorporation from China, Microsoft Corporation from America, Pearson Corporation from United Kingdom and Abakanva gonmash from the Russian market. Furthermore, the paper has undertaken a fundamental analysis of the effectiveness of the financial strategies that have been undertaken by the management of the various corporations reviewed in the research project. In financing their asset acquisition, the various corporations employ diverse financing strategies as illustrated in the table below. The financing of the capital structure of the various corporations is made up of debt and equity. 2013 financial year results have been employed in calculating the debt and equity proportion of the four firms. The computations undertaken above implies majority of the corporations been analyzed employ equity in financing their asset acquisition. Only 21Vianet Group Incorporation employs debt financing more than equity as illustrated above. The four companies analyzed in this project research have undertaken significant