Home / introduction to corporate finance pdf / &RUSRUDWH)LQDQFH - Kenyatta University

&RUSRUDWH)LQDQFH - Kenyatta University - introduction to corporate finance pdf

&RUSRUDWH)LQDQFH - Kenyatta University-introduction to corporate finance pdf

Corporate Finance
Download free books at

Corporate Finance
Download free ebooks at bookboon.com

Corporate Finance ? 2008 Ventus Publishing ApS ISBN 978-87-7681-273-7
Download free ebooks at bookboon.com

Corporate Finance


1. Introduction

2. The objective of the firm

3. Present value and opportunity cost of capital 3.1 Compounded versus simple interest 3.2 Present value 3.3 Future value 3.4 Principle of value additivity 3.5 Net present value 3.6 Perpetuities and annuities 3.7 Nominal and real rates of interest 3.8 Valuing bonds using present value formulas 3.9 Valuing stocks using present value formulas

4. The net present value investment rule

5. 5.1 5.2 5.3 5.4 5.4.1 5.4.2

Risk, return and opportunity cost of capital Risk and risk premia The effect of diversification on risk Measuring market risk Portfolio risk and return Portfolio variance Portfolio's market risk

Fast-track your career

10 10 10 12 12 13 13 16 17 21
27 27 29 31 33 34 35

Please click the advert

Masters in Management
London Business School Regent's Park London NW1 4SA United Kingdom Tel +44 (0)20 7000 7573 Email mim@london.edu www.london.edu/mim/

Stand out from the crowd
Designed for graduates with less than one year of full-time postgraduate work experience, London Business School's Masters in Management will expand your thinking and provide you with the foundations for a successful career in business. The programme is developed in consultation with recruiters to provide you with the key skills that top employers demand. Through 11 months of full-time study, you will gain the business knowledge and capabilities to increase your career choices and stand out from the crowd. Applications are now open for entry in September 2011.
For more information visit www.london.edu/mim/ email mim@london.edu or call +44 (0)20 7000 7573
Download free ebooks at bookboon.com

Corporate Finance

5.5 5.6 5.7 5.7.1 5.7.2 5.7.3

Portfolio theory Capital assets pricing model (CAPM) Alternative asset pricing models Arbitrage pricing theory Consumption beta Three-Factor Model

6. 6.1 6.2 6.3 6.4 6.4.1 6.4.2 6.4.3 6.5

Capital budgeting Cost of capital with preferred stocks Cost of capital for new projects Alternative methods to adjust for risk Capital budgeting in practise What to discount? Calculating free cash flows Valuing businesses Why projects have positive NPV

7. 7.1 7.1.1 7.1.2 7.1.3 7.1.4 7.2

Market efficiency Tests of the efficient market hypothesis Weak form Semi-strong form Strong form Classical stock market anomalies Behavioural finance

36 38 40 40 41 41
42 43 44 44 44 45 45 45 48
49 50 50 51 53 54 54

Please click the advert ? UBS 2010. All rights reserved.

You're full of energy and ideas. And that's
just what we are looking for.
Looking for a career where your ideas could really make a difference? UBS's Graduate Programme and internships are a chance for you to experience for yourself what it's like to be part of a global team that rewards your input and believes in succeeding together.
Wherever you are in your academic career, make your future a part of ours by visiting www.ubs.com/graduates.


Download free ebooks at bookboon.com 5

What are the essentials of corporate finance?Essentials of Corporate Finance. - Focuses on conveying the most important concepts of a core finance course in a way that is approachable for the widest possible audience. - 3 basic themes as a central focus: an emphasis on intuition, a unified valuation approach, and a managerial focus.