Corporate finance includes three items: investment decision, financing decision and net working capital management.
Investment decision: involves the left side of the balance sheet, that is, the whereabouts of money (capital budget).
Financing decision: involves the right side of the balance sheet, that is, where the money comes from (capital expenditure). In addition, in the financing decision, debt financing refers to issuing bonds or borrowing money; Equity financing refers to issuing stocks. Therefore, capital structure is the ratio between short-term and long-term liabilities and shareholders' equity. The best capital structure is the debt-equity ratio with the lowest financing cost.
Net working capital management: the cash flow generated by operating activities is uncertain in quantity and time.