investment-education

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.

Learn how to use financial ratio analysis to evaluate company liquidity, profitability, leverage, efficiency, and market valuation with real-world examples and formulas.

Learn how to convert between APR and EAR, understand compounding frequencies, apply the Fisher equation for real interest rates, and interpret yield curve shapes.

The time value of money is the foundational principle that a dollar today is worth more than a dollar in the future. Learn the present value and future value formulas, the Rule of 72, and how to apply TVM to real investment decisions.

Learn the annuity formula for present and future value of ordinary annuities, annuity due, perpetuities, and growing cash flows with real-world mortgage and retirement examples.

Monopolistic competition is a market structure with many firms selling differentiated products. Learn about short-run and long-run equilibrium, excess capacity, markup, and the economics of advertising.

Learn how economists measure income inequality using the Gini coefficient and Lorenz curve. Covers quintile analysis, poverty measurement, causes of inequality, redistribution policies, and the equality-efficiency trade-off with utilitarian, Rawlsian, and libertarian perspectives.

Learn how the marginal product of labor determines wages and employment. Understand VMP, derived demand, diminishing returns, and competitive vs monopsony labor markets.

Learn about public goods, common resources, the free rider problem, and the tragedy of the commons. Understand excludability, rivalry, and solutions including government provision, property rights, and community management.