Corporate Finance

Learn how companies choose between paying dividends, repurchasing shares, and retaining earnings — including MM irrelevance, signaling theory, and tax implications.

Working capital management ensures firms have enough liquidity to meet short-term obligations while minimizing idle asset costs. Learn about the cash conversion cycle (CCC), DIO, DSO, DPO, trade credit analysis, and short-term financing options.

Comprehensive guide to mergers and acquisitions covering merger types, synergy analysis, acquisition NPV, hostile vs friendly takeovers, takeover defenses, leveraged buyouts, and empirical evidence on who captures the gains.

Learn how to build pro forma financial statements using the percent-of-sales method, calculate external financing needed (EFN), and determine sustainable and internal growth rates for corporate financial planning.

How investment bankers and analysts value companies using discounted cash flow analysis, comparable company analysis (trading comps), and precedent transactions. Covers peer selection, normalization, EV-to-equity bridge, control premiums, football field charts, and multi-method synthesis.

Learn how companies raise equity capital through IPOs, seasoned equity offerings, and modern alternatives. Covers the IPO process from the issuer perspective, underwriting costs, pricing puzzles, and the equity vs debt financing decision.

Learn the free cash flow formula (FCF = NOPAT + Depreciation – CapEx – Change in NWC), how to identify incremental cash flows, and techniques for sensitivity analysis in capital budgeting.

Learn about corporate bonds, debt covenants, credit ratings, and repayment provisions. Understand the types of corporate debt, how credit spreads work, and what happens when bonds default.

The Modigliani-Miller theorem shows that in perfect capital markets, firm value is independent of capital structure. Learn about MM Propositions, the tax shield, tradeoff theory, and pecking order theory.

Corporate finance is the study of how firms make three core financial decisions — capital budgeting, capital structure, and working capital management — to maximize the value of the firm to its owners.