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Corporate finance is an area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.
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Corporate Finance Advisory . www.meridiancf.com | 9355414555 | info@meridiancf.com
What is Corporate Finance ? Corporate finance is an area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. . www.meridiancf.com | 9355414555 | info@meridiancf.com
How Important is a Company’s Capital Structure in Corporate Finance? A company’s capital structure is crucial to maximizing the value of the business. Its structure can be a combination of long-term and short-term debt or common and preferred equity. The ratio between a firm’s liability and its equity is often the basis for determining how well balanced or risky capital financing is. A company that is heavily funded by debts has a more aggressive capital structure and, therefore, potentially holds more risk for stakeholders; however, this risk is often the primary reason for a company’s growth and success. . . www.meridiancf.com | 9355414555 | info@meridiancf.com
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