The Latest Lore from the Halls of Thought

Understanding the optimal mix of debt and equity financing is important for corporate success. This post explores the fundamentals of capital structure theory and its practical applications. Capital structure represents one of the most fundamental decisions in corporate finance. It determines how a company finances its operations and growth through different sources of funds.

Corporate finance forms the backbone of business decision-making. This introductory post explores the key concepts every management student should understand. Corporate finance is the area of finance that deals with the sources of funding, capital structure, and investment decisions that corporations make to maximize shareholder value.