What is Corporate Finance?
Corporate finance encompasses the financial activities and decisions made within corporations to achieve their overarching goals, which typically include maximizing shareholder wealth and ensuring long-term financial health. It’s a fundamental aspect of business management that focuses on the allocation of resources and the management of financial risks to enhance the value of the firm. At its core, corporate finance involves analyzing the financial implications of various strategies, projects, and investments to make informed decisions that align with the company’s objectives.
Geeky Takeaways:
- One of the primary objectives of corporate finance is to maximize shareholder wealth.
- Corporate finance involves the evaluation and selection of investment projects that generate positive returns for the company.
- Determining the optimal mix of debt and equity financing is crucial in corporate finance.
Table of Content
- How Corporate Finance Work?
- Importance of Corporate Finance
- Types of Corporate Finance
- Principles of Corporate Finance
- Examples of Corporate Finance Activities
- Career in Corporate Finance
- Difference between Corporate Finance and Finance
- Corporate Finance – FAQs