Corporate finance deals with the funding and helps in management to increase the value of the company. It also helps in distributing its resources and prioritizing by using certain tools and analysis. Through planning and implementation of resources, corporate finance manages to balance the risks by mitigating losses and also makes sure the company is becoming more profitable. There are main corporate financial activities that take care of capital investments, capital financing, dividends & return of capital.
Investing and capital budgeting needs to be done in order to decide where to invest the company’s assets in order to generate profitable returns. Through financial analysis, financial experts will be able to know whether to pursue an investment opportunity. One of the main activities include how to optimally finance capital investments. Corporate managers will also need to decide whether to retain a businesses profits for future investments or current operational requirements,etc.