Arguably,
the role of a corporation's management is to increase the value of the
firm to its shareholders while observing applicable laws and
responsibilities. Corporate finance deals with the strategic financial
issues associated with achieving this goal, such as how the corporation
should raise and manage its capital, what investments the firm should
make, what portion of profits should be returned to shareholders in the
form of dividends, and whether it makes sense to merge with or acquire
another firm.
