Corporate finance involves the financial activities related to running a corporation, with a focus on maximizing shareholder value through long-term and short-term financial planning and the implementation of various strategies. Here are some key topics within corporate finance:
1. Capital Structure:
Debt vs. Equity Financing: The mix of debt (loans, bonds) and equity (stocks) used to finance a company’s operations and growth.
Cost of Capital: Calculating a company’s cost of equity, cost of debt, and weighted average cost of capital (WACC).