Corporate finance and capital structure decisions are fundamental aspects of financial management that significantly impact a company's performance and value. Corporate finance encompasses the strategies and practices related to investment, financing, and dividend decisions. These decisions are designed to optimize the company’s financial resources, ensuring sustainable growth and enhancing shareholder value. Investment decisions involve evaluating and selecting projects or assets that promise the best returns, using techniques such as Net Present Value (NPV) and Internal Rate of Return (IRR). Financing decisions focus on determining the optimal mix of debt and equity to fund the company's operations and growth, balancing the costs and risks associated with each type of financing. Capital structure, a key component of corporate finance, refers to the way a company finances its operations and growth through a mix of debt and equity. An effective capital structure strategy seeks to minimize the cost of capital while managing financial risk and maintaining flexibility. Debt financing, while often cheaper due to tax-deductible interest, introduces financial obligations and risk, whereas equity financing, which involves issuing shares, does not require repayment but dilutes ownership. The interplay between debt and equity influences a company’s risk profile and overall cost of capital. Companies must navigate trade-offs between leveraging debt for potentially higher returns and avoiding excessive risk that could lead to financial distress. Additionally, market conditions, tax considerations, and financial flexibility play crucial roles in shaping capital structure decisions. By strategically managing these elements, companies can enhance their financial stability, support growth initiatives, and achieve long-term success.