Corporate finance refers to the financial activities and decisions that corporations make to maximize their value and manage their financial resources. This includes raising capital through equity or debt, investing in projects, and managing risks. The primary goal is to enhance shareholder wealth while ensuring the company remains financially stable. Key components of corporate finance include capital budgeting, which involves evaluating potential investments, and capital structure, which focuses on the mix of debt and equity financing. Additionally, financial analysis plays a crucial role in assessing the company's performance and making informed decisions for future growth.