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Table Of Contents

1. Introduction
2. The objective of the firm
3.1 Compounded versus simple interest
3.2 Present value
3.3 Future value
3.4 Principle of value additivity
3.5 Net present value
3.6 Perpetuities and annuities
3.7 Nominal and real rates of interest
3.8 Valuing bonds using present value formulas
3.9 Valuing stocks using present value formulas
4. The net present value investment rule
5.1 Risk and risk premia
5.2 The effect of diversification on risk
5.3 Measuring market risk
5.4.1 Portfolio variance
5.4.2 Portfolio's market risk
5.5 Portfolio theory
5.6 Capital assets pricing model (CAPM)
5.7.1 Arbitrage pricing theory
5.7.2 Consumption beta
5.7.3 Three-Factor Model
6.3 Alternative methods to adjust for risk
6.4.1 What to discount?
6.4.2 Calculating free cash flows
6.4.3 Valuing businesses
6.5 Why projects have positive NPV
7.1.1 Weak form
7.1.2 Semi-strong form
7.1.3 Strong form
7.1.4 Classical stock market anomalies
7.2 Behavioural finance
8.1 Debt characteristics
8.2 Equity characteristics
8.3.1 Does the firm's debt policy affect firm value?
8.3.2 Debt policy in a perfect capital market
8.4 How capital structure affects the beta measure of risk
8.5 How capital structure affects company cost of capital
8.6 Capital structure theory when markets are imperfect
8.7 Introducing corporate taxes and cost of financial distress
8.8 The Trade-off theory of capital structure
8.9 The pecking order theory of capital structure
8.10 A final word on Weighted Average Cost of Capital
8.11.1 Dividend payments in practise
8.11.2 Stock repurchases in practise
8.11.3 How companies decide on the dividend policy
8.11.4 Does the firm's dividend policy affect firm value?
8.11.5 Why dividend policy may increase firm value
8.11.6 Why dividend policy may decrease firm value
9.1 Option value
9.2 What determines option value?
9.3.1 Binominal method of option pricing
9.3.2 Black-Scholes’ Model of option pricing
10.1 Expansion option
10.2 Timing option
10.3 Abandonment option
11. Appendix: Overview of formulas
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Corporate Finance

Corporate Finance



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Published by tipookhan

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Categories:Business/Law, Finance
Published by: tipookhan on Apr 21, 2010
Copyright:Attribution Non-commercial


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