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1.3 Can you give a definition of corporate finance?

User Trogne
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Final answer:

Corporate finance is a branch of finance that deals with the financial decisions and activities of corporations. It involves managing the financial resources of a company to maximize shareholder value while also considering the risks involved. Financial capital refers to the funds that a company uses to finance its operations or invest in projects.

Step-by-step explanation:

Corporate finance is a branch of finance that deals with the financial decisions and activities of corporations. It involves managing the financial resources of a company to maximize shareholder value while also considering the risks involved. Financial capital refers to the funds that a company uses to finance its operations or invest in projects. It can come from various sources, such as borrowing from banks, issuing bonds, or issuing corporate stocks. The choice of the source of financial capital depends on factors like the company's financial needs, cost of capital, and risk tolerance.

User Alan Gaytan
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