A division or department that oversees the financial activities of a company. Corporate finance is primarily concerned with maximizing shareholder value through long-term and short-term financial planning and the implementation of various strategies. Everything from capital investment decisions to investment banking falls under the domain of corporate finance. Corporate finance is the division of finance that deals with how corporations deal with funding sources, capital structuring, and investment decisions.

In particular, there are Four elements within Corporate Finance that everyone should be mindful of when doing any type of analysis. These Four elements are operating flows, invested capital, cost of capital, and return on invested capital.