The next subject (tenth) in CFA Level-1 exam is Corporate Finance. Corporate finance deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize the shareholder value. The various issues starting from corporate governance, analysis of capital budgeting problems, estimating company's cost of capital, evaluation of company's operating and financial leverage and its working capital management are included in this subject. It has a weightage of 10%.
It covers below topics: