Corporate Finance
- Access the eBook anytime, anywhere: online or offline
- Create notes, flashcards and make annotations while you study
- Full searchable content: quickly find the answers you are looking for
Future Value and Present Value
Effective Interest Rates
Net Present Value vs. Internal Rate of Return
Present Value Calculations with Systematic Cash Flow
Internal Rate of Return Calculations with Systematic Cash Flow
Bond Valuation
Share Valuation
The Payback Rule
The Net Present Value Rule
Internal Rate of Return
Problems with the IRR Method
Capital Rationing
Equivalent Annual Income
Cash Flows
Inflation
Taxes in Investment Analysis
Sensitivity analysis
Problems
Risk and Risk Management
Diversification
Risk
Portfolio Theory
The Capital Asset Pricing Model (CAPM)
Options
Swaps
Problems
Long-term Financing
Market Efficiency
Debt Financing
Dividend Policy
Capital Structure
Problems
Afterword
Literature
Appendices
A Future Value Table
B Present Value Table
C Continuously Compounded Interest Rates
D Present Value of a Perpetuity
E Present Value of a Growing Perpetuity
F Present Value of an Ordinary Annuity
G Annuity Factor Table
H The Present Value of Growth Opportunities
I Matrix Methods for Calculating Portfolios
J Cumulative Standard Normal Distribution
Test yourself solutions
Problem solutions