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What is Personal Finance..? Explain about it in a few words..? | MUNIPALLI AKSHAY PAUL |

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Personal Finance and Its Types Personal finance is the art and science of managing one’s financial resources to achieve personal economic goals and ensure financial well-being. It encompasses a variety of activities and decisions, including budgeting, saving, investing, and planning for future financial needs. Effective personal finance management helps individuals live within their means, build wealth, and prepare for unforeseen circumstances. Understanding its types is crucial for making informed financial decisions. Importance of Personal Finance Personal finance plays a vital role in achieving financial independence and stability. It equips individuals with the knowledge and skills to manage their money effectively. Whether it’s saving for retirement, buying a home, or building an emergency fund, personal finance helps people set priorities, make strategic decisions, and avoid unnecessary debt. Moreover, in a world where economic uncertainties are common, proper financial planning ...

What is Corporate Finance..? | MUNIPALLI AKSHAY PAUL |

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Corporate finance is a branch of finance that deals with the financial activities and decisions of a corporation. It focuses on how companies manage their capital, investments, and funding to maximize shareholder value while ensuring the organization operates efficiently. Key Areas of Corporate Finance: Capital Budgeting (Investment Decisions) Evaluating and selecting long-term investments such as projects, acquisitions, or new ventures. Methods used: Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period Profitability Index (PI) Capital Structure (Financing Decisions) Deciding the mix of debt and equity financing for the company. Aim: To minimize the cost of capital and maximize returns to shareholders. Key considerations: Debt-to-equity ratio. Cost of debt vs. cost of equity. Financial leverage and risk management. Working Capital Management Managing short-term assets (e.g., cash, inventory, accounts receivable) and liabilities (e.g., ac...

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