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1. Corporate finance has three main areas of concern: a. Capital Budgeting: What long-term investments should the firm take? b. Capital structure: Where will the

1. Corporate finance has three main areas of concern:

a. Capital Budgeting: What long-term investments should the firm take?

b. Capital structure: Where will the firm get the long-term financing to pay for its investments? Also,

what mixture of debt and equity should it used to fund operations?

c. Working capital management: How should the firm manage its everyday financial activities?

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