Chapter 1

Introduction to Corporate Finance

Goals of the firm: Profit maximization vs. Wealth maximization

medium • 1 min read

Agency problem and corporate governance

medium • 2 min read

Time value of money (Present and Future value)

medium • 3 min read

Annuities, perpetuities, and compounding frequencies

medium • 4 min read

Risk and return concepts basics

medium • 5 min read

Chapter 2

Capital Budgeting Decisions

Nature and process of capital budgeting

medium • 1 min read

Cash flow estimation and relevant cash flows

medium • 2 min read

Traditional techniques: Payback period and ARR

medium • 3 min read

Discounted cash flow techniques: NPV, IRR, PI

medium • 4 min read

Capital rationing and risk analysis in capital budgeting

medium • 5 min read

Chapter 3

Cost of Capital

Concept and significance of cost of capital

medium • 1 min read

Cost of debt, preference capital, and equity

medium • 2 min read

CAPM approach vs. Dividend growth model approach

medium • 3 min read

Weighted Average Cost of Capital (WACC)

medium • 4 min read

Marginal cost of capital

medium • 5 min read

Chapter 4

Capital Structure and Leverage

Operating, Financial, and Combined Leverage

medium • 1 min read

Capital structure theories: Net Income, Net Operating Income

medium • 2 min read

Modigliani-Miller (MM) hypothesis (with and without taxes)

medium • 3 min read

Trade-off theory and Pecking order theory

medium • 4 min read

Determinants of an optimal capital structure

medium • 5 min read

Chapter 5

Dividend Policy and Working Capital

Dividend relevance (Walter's model, Gordon's model)

medium • 1 min read

Dividend irrelevance (MM hypothesis)

medium • 2 min read

Forms of dividends (Cash, Bonus shares, Stock splits)

medium • 3 min read

Concepts and components of working capital

medium • 4 min read

Estimation of working capital requirements and financing strategies

medium • 5 min read