1. What do you know about corporate finance?

2. Hows the procedure of capital investment decisions?

3. What is the function of studies the financial decisions?
4. According to the text above, what are the elegant manners of corporate finance and
corporate financier?
5. What is the major theory of the Trade-Off Theory?
Answer
1.
2.

3.

4.

5.

Corporate Finance is the field of finance dealing with financial decisions that business
enterprises make and the tools and analysis used to make these decisions.
Capital investment decisions are long-term choices about which projects receive
investment, whether to finance that investment with equity or debt, and when or
whether to pay dividends to shareholders. On the other hand, short term decisions deal
with the short-term balance of current assets and current liabilities; the focus here is
on managing cash, inventories, and short-term borrowing and lending (such as the
terms on credit extended to customers).
the function of studies the financial decisions to override to the financial problems of
all kinds of firms, and to maximize corporate value while managing the firm's
financial risks
the elegant manners of corporate finance and corporate financier are associated with
investmen banking. Which means the typical role of an investment bank is to evaluate
the companys financial needs and raise the appropriate type of capital that best fits
those needs.
In which firms are assumed to trade-off the tax benefits of debt with the bankruptcy
costs of debt when making their decisions