Here's a bundle of all my lecture notes from the module MN10500: Corporate Finance for Managers. A great comprehensive source of key concepts related to Corporate Finance, I used these a lot in my second and third year as well!
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Notes are taken from the lecture, on the topic Basics of Corporations.
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Add to cartNotes are taken from the lecture, on the topic Basics of Corporations.
Notes taken from the lecture on The Time Value of Money. A more detailed guide on the basics of present value and future value of money, and related concepts.
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Add to cartNotes taken from the lecture on The Time Value of Money. A more detailed guide on the basics of present value and future value of money, and related concepts.
Lecture Summary ● Characteristics of bonds ● Bond price as the present value of coupons and principal ● Characteristics of equity (stock) ● Dividend Discount Model: Calculations and critiques ● Constant Dividend Growth Model: Calculations and critiques
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Add to cartLecture Summary ● Characteristics of bonds ● Bond price as the present value of coupons and principal ● Characteristics of equity (stock) ● Dividend Discount Model: Calculations and critiques ● Constant Dividend Growth Model: Calculations and critiques
Lecture Summary ● Calculations: ○ Payback Period ○ NPV (not the 'normal' IRR) ○ Investment decisions under Capital Rationing ○ Modified IRR ● Advantages and disadvantages of alternative investment appraisal techniques: ○ NPV is the most accurate method in most cases.
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Add to cartLecture Summary ● Calculations: ○ Payback Period ○ NPV (not the 'normal' IRR) ○ Investment decisions under Capital Rationing ○ Modified IRR ● Advantages and disadvantages of alternative investment appraisal techniques: ○ NPV is the most accurate method in most cases.
Lecture Summary ● Common measures of risk and return ○ Compare different asset classes ● Portfolio risk and return ○ Return as weighted-average return ○ Risk (in most cases) not weighted-average, but dependent on correlation. ● Diversification ○ Market (systematic) and unique (f...
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Add to cartLecture Summary ● Common measures of risk and return ○ Compare different asset classes ● Portfolio risk and return ○ Return as weighted-average return ○ Risk (in most cases) not weighted-average, but dependent on correlation. ● Diversification ○ Market (systematic) and unique (f...
Lecture Summary ● Market risk is the only relevant risk in a diversified portfolio. ● Capital Asset Pricing Model (CAPM) ○ Calculations ○ Critiques: Its assumptions & arguments/evidence against them. ● Cost of Capital (WACC) ○ Always after-tax, unless otherwise indicated.
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Add to cartLecture Summary ● Market risk is the only relevant risk in a diversified portfolio. ● Capital Asset Pricing Model (CAPM) ○ Calculations ○ Critiques: Its assumptions & arguments/evidence against them. ● Cost of Capital (WACC) ○ Always after-tax, unless otherwise indicated.
Corporate Financing Patterns ● Internally generated funds: ○ Retained earnings/plowback profit ● External sources of finance: ○ Debt ○ Equity ● Firms may raise funds from external sources or plow back profits (internal funds). External financing involves the choice between debt & ...
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Add to cartCorporate Financing Patterns ● Internally generated funds: ○ Retained earnings/plowback profit ● External sources of finance: ○ Debt ○ Equity ● Firms may raise funds from external sources or plow back profits (internal funds). External financing involves the choice between debt & ...
Lecture Summary ● The trade-off between debt and equity. ○ Benefits ○ Costs ● Alternative capital structure theories and empirical evidence. ● The (simplified) cost of capital model to determine the optimal debt-equity combination that minimises WACC.
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Add to cartLecture Summary ● The trade-off between debt and equity. ○ Benefits ○ Costs ● Alternative capital structure theories and empirical evidence. ● The (simplified) cost of capital model to determine the optimal debt-equity combination that minimises WACC.
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