Corporate finance is the area of
finance dealing with the sources of funding and the
capital structure of corporations and the actions that managers take to increase the
value of the firm to the
shareholders, as well as the tools and
analysis used to allocate financial resources. The primary goal of corporate finance is to
maximize or increase
shareholder value. Although it is in principle different from
managerial finance which studies the financial management of all firms, rather than
corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.