What Is Corporate Finance:Corporate Financing:Corporate Finance Solutions

1.  Corporate Finance:

                 Corporate Finance is an area of Finance which deals with corporate level. For Instance when company deals with their financial issues specially when they are seeking to minimize financial risk in order to improve their performance that is known as Corporate Finance.
It actually deals with the financial ratios and other financial issues of corporate level. Companies always wants the solutions of their financial issues. Such like Tax, risk and other issues related with capital budgeting. Here i will discuss the solutions of Corporate Finance. I will explain briefly here that how we can try from the heavy tax by doing some change in leverage and owners equity. But before talking about the solutions of Corporate Finance we need to know that what type of issues can be raised at corporate level, Further more we will see that how these issues can put impact on the performance of companies. The first issue is of Tax. No company wants to pay a big amount as a tax they just want to minimize their tax by adopting different techniques.
How To Minimize The Tax:
                  Every company always try to minimize the tax. Tax is basically depend upon the value of the company and in the value of company Both Debt and Equity is included. Higher the value higher will be the tax amount impose on the company. The Companies who are without leverage always have to pay greater amount of tax as compared to those companies who contains leverage. So Debt occurs as a Tax Shield for the companies which contains Debt. So If any company want to minimize the burden of tax they should not be Debt free and should must take some Debt from the Financial institutions.
        Second problem is about the Risk. As for capital budgeting heavy investment is involved, as we are dealing with fixed assets so we always try to minimize the risk.
How to Minimize The Risk:
              For Minimization of Risk companies should forecast the situation and they should analyze the Risk that how they can minimize the risk regarding with their purchase of fixed assets. Moreover they should forecast the profit which can be given by that capital budgeting. They should never focus on the large profit from their heavy investment instead of this they should focus on on small risk, As we all know that higher the profit higher would be risk.
   Third Issue which could be raise for the companies is actually of Time Value Of Money(TVM). I am expecting that everyone who is reading this article would be familiar about the time value of money. So the solution of this problem is this that companies should not leave their cash in the idle form they must have to invest their canst in some financial instruments such like T bills and Bonds etc, They can buys the shares of other companies also. This is the only solution to overcome the problem of time value of money.
  These are the few problems which frequently faced by the companies, and the corporate level. Related with that i have discuss solutions of corporate finance as well. I think this article would be helpful for those who are beginners or who have little bit practical information about the problems of Corporate Finance.

Pakistan's First Floating Hotel And Mall: Karachi pakistan Hotel

Rumor has it that Pakistan's first five star floating hotel and mall, designed by internationally reputed architectures and promoted by local developers, will be built and completed by 2010 at a total cost of six billion Rupees.
This gigantic commercial "complex", will be located on a ship(330feet long and 110 feet wide) towering five storeys high and will be encored offshore near sea view, DHA V and VI, in Karachi Pakistan. It will be built by the Karachi shipyard and Engineering works. The floating hotel and mall will be operated by a hotel management firm. The ships will have shops, restaurants and play areas fro children.
The mall is said to have a security plan that will comply with the International ship and port security code (ISPS). The ISPS code stipulates various minimum regulations, such as the installation of a ship security alert system, CCTV to monitor sensitive areas, restricted access to these areas and fire prevention measures.
There will be 110 shops on board the ship ranging in size from 100 to 1,000 sq feet. Although the prices of the shop have not been made public, a couple of interesting details have emerged regarding the financial aspect of the project. To begin with, buyers will deposit money into as escrow account rather then paying it directly to the developers. However, there investment will be fully insured by a reputed insurance agency in case developers default on any aspect of this project, the first floating hotel and mall in Karachi Pakistan.
Although there will be no restrictions on buying and selling, investors wishing to sell their space will have to pay a one percent transfer fee to the developers. The transfer fee will be based on the prevalent selling price.

Building PR In Real Estate:Real Estate Pakistan

Most real estate agencies lose business due to one basic reason: they do not bother to call clients, once the deal is completed. Nor do they maintain a database of those clients with whom deals could not be completed and a result lose out on an opportunity to maintain goodwill in the market. The fact of the matter is that real estate agencies are more earned inclined to earn revenues rather then build credibility and do not bother to allocate a separate budget properly put together a list of clientele.
Here are few tips that can make real estate agencies more effective in building PR:
1) Develop a comprehensive website of a real estate agency describing the areas of expertise.
2) Send E-mails to prospective clients, describing the salient features of the properties from inventory list.
3) participate in events and program that can give maximum exposure to your real estate agency.
4) Develop a working relationship with people who have authority and can take decision to buy, sell or rent properties. Be proactive and send them relevant news and articles from time to time.
5) Publish articles online to your position your agency as a leader in the field.
6) Find out what kind of properties your target audience is searching for on the internet.
7) Conduct real estate seminars to spread information among property buyers and sellers. If the seminar become popular, invite the local media to attend for print and electronic coverage.
PR can strengthen your real estate marketing program with credibility and targeted exposure for the fraction of the cost of traditional advertising, but it requires patience and persistent. Remember that although real estate PR takes time and effort, the results end up in financial gains.

The Pre-purchase House Survey: Buying A House: Check List For First Time Home Buyer

Buying a house is one of the most important decisions will make, and as a buyer you need to check many aspects of a property before making your final decisions, including location, look, and finish.
Once a decision is made many home buyers take a long time negotiating the deal with the seller and then vetting the property's title documents. Although this is important, what most home buyers forget to do is hire the services of a professional building surveyor.
There is little sense in spending million of rupees buying a house and then discovering that the house needs another investment of few million to make necessary repaid to put the house in order moving in. It is far better to be aware of any potential repairs before the house is purchased, and this is where a professional building surveyor can be of great help. When a surveyor is hire they will evaluate:
1) The Foundation.
2) The drainage system.
3) Floors, stairs, interior walls and ceiling.
4) Windows, doors, ventilation.
5) Electricity wiring.
6) Cooling and Heating system.
Having a pre-purchase building survey carried out by a reliable building surveyor during the buying process can save millions of rupees on matters that can be put right by the seller or builder before the property is sold.
Remember, Buying a house is not an easy task and it is wiser not to make the biggest purchase your most costly mistake.

The Guest House Option In Pakistan:Guest House Karachi:Guest House Islamabad

Guest Houses have always been popular places to stay for people traveling in northern Pakistan. However, security concerns have now made guest houses desirable option for foreign and domestic businessmen and tourists, traveling throughout Pakistan, especially to cities such as Abbott abad, Faisalabad, Islamabad, Karachi, Lahore and Multan among others. Guest Houses, as the same name suggests, are large homes that have been converted into small, low profile hotels; they are usually located in residential areas, are inconspicuous and generally more secure then high profit hotels.
Safe, comfortable and equipped with modern amenities, most guest houses include 24-hour room service, laundry and ironing services, cable TV Wi-Fi connectivity and business center facilities such as computers, internet, fax, photocopy and scanning.
Room mates are applied in US dollars and vary from city to city; payments can be made through cash, cheque or credit card in local currency. Reservations in Guest houses can also be made online in which case advanced payment is required.
Here is a closer look at per night stay including breakfast:
Guest House Abbottabad: Single- 30$; double- 41$.
Guest House Faisalabad: Single- 35$; double- 40$.
Guest House Islamabad: single- 45$; double- 50$.
Guest House Karachi: single- 54$; double- 58$.
Guest House Lahore: single- 29$; double 33$.
Guest House Multan: single- 40$; double- 45$.
Groups that require multiple rooms at one time are able to negotiate discounted daily room rates.

Rent A Wedding Home Or Wedding Venues In The Major Cities Of Pakistan

The wedding season is here and with it come streams of family, friends and out guests from out of town. If you need to accommodate your friends and don't have room at home, there are houses available for short term leases (per day,weekly,monthly or for three months). In some cases you can event rent just the lawn- for a day or two. These houses are usually fully furnished and come equipped with utilities, household and electronic appliances, crockery and linen.
Although rents at the discretion of landlord below are a general guideline of the current rental rates and areas:

In Karachi: Wedding Homes and Wedding Venues can be rented in Clifton and Defense at the following rates:
Per Event: Lawn only-80,000-150,000Rs; Per Day: Entire Wedding Home- 150,000-200,000Rs.

Per Month: 1,000 sq yards-250,000-400,000Rs; 2,000 sq yards:300,000-600,000Rs.

In Lahore: one to eight Kanals(500 to 4,000 sq yards) wedding homes can be rented in Defense, cantonment and Gulberg at the following rates:

Per Event: Lawn only- 100,000-150,000Rs.
Per Day: Entire Wedding Homes 150,000-200,000Rs.
Per Month: 1,000 sq yards 150,000-300,000Rs; 2,000 sq yards:200,000-500,000Rs.

In Islamabad: 1,000 to 2,000 sq yard wedding homes can be rented in sectors E-11, F-6, F-7, F-10 and F-11 at the following rates:

Per Event: Lawn Only 100,000-200,000Rs.
Per Day: Entire Wedding Home 150,000-300,000Rs.
Per Month: 1,000 sq yards 200,000-300,000Rs; 2,000 sq yards: 250,000-600,000Rs.
Payment of utility bills is the tenant's responsibility and there is a separate charge for generators. Most well-known estate agents usually have a list of Wedding Homes and Wedding Venues that are available on short term leases.

Residentail Rising In Real Estate Pakistan

Image via WikipediaWhen the budget was announced this year, there was a good news and bad news for prospective property buyer in Sindh.
The good news was that Capital Value Tax(CVT) was reduced from 4% to 2%(However, from now on, CVT will be collected by provincial government, instead of the federal government when a property is purchased).
The bad news was that the provincial government increased the property rates in Sindh's valuation table, which translated into a substantial increase in property prices.
They valuation table divides area into different categories and assign rates based on size and location; rates apply to both plots and residential/commercial/industrial property.
Here is a look at two of the top residential categories:

Category A-1 includes some of the Karachi's most upmarket areas such as Bath Island, Clifton, DHA phases 1,11,V and phase V extension, as well Muhammad Ali Housing society and Sindhi Muslim Cooperative Housing Society.
In these areas rates for both empty and built up residential plots increased by 307.4%.

- Rates for empty plots increased by 11,205Rs per square yard(from 3.645 to 14,850Rs).

- Rates for built up plots increased by 17,430Rs per square yard(from 5,760 to 23100Rs).

Category I includes Abdullah Haroon Road, Burns Road, DHA phases IV, VI and VII, GUlshan-e-Iqbal Block 17, I.I Chudrigar Road, M.A Jinnah Road, North Nazimabad, and Queens Road.
In these areas rates for both empty and built up residential plots increased by 239.5%.
- Rates for empty plots increased by 6790Rs per square yard.

- Rates for built up plots increased by 8.370Rs per square yard.