What is the role of corporate finance?

The role of corporate finance is to make financial decisions that increase a company’s value and help it achieve its goals. This includes:

1. Raising capital: Corporate finance helps companies secure funding through various methods such as issuing bonds, stocks, or taking out loans.
2. Investment decisions: Corporate finance helps companies make investment decisions, such as deciding which projects to invest in and how much to invest.
3. Financial management: Corporate finance is responsible for managing a company’s financial resources, such as cash and credit, to ensure that it has enough resources to meet its obligations and achieve its goals.
4. Risk management: Corporate finance helps companies assess and manage financial risks, such as interest rate risk, currency risk, and market risk.
5. Financial planning and analysis: Corporate finance helps companies plan their financial future by forecasting revenue, expenses, and cash flows.

Overall, the role of corporate finance is to ensure that a company’s financial decisions are in line with its overall strategy and goals, and that its financial resources are used effectively and efficiently to maximize its value.