Corporate Finance involves allocation of funds to optimal projects which could maximize the wealth of shareholders. Corporate Finance analyses available projects and chooses best possible option which can achieve the organizational goal and maximize wealth. Corporate Finance helps in taking decisions related to sources of finance and capital structure. Debt and Equity are two main sources of finance and corporate finance helps in optimizing the mix of debt and equity which is best suited to the organization. Corporate Finance involves in a wide range of short term and long term decisions. It helps in making Strategic Financial Decisions.
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