Corporate Finance
This web site is designed to provide supporting material for corporate finance related topics. Corporate finance, as I define it, covers every decision a firm makes that may affect its finances. Consequently, I divide my discussion of corporate finance into five areas. The first is the objective function, where we define what exactly the objective in decision making should be. The second is the investment decision, where we look at how a business should allocate of resources across competing uses. The third is the financing decision, where we examine the sources of financing and whether there is an optimal mix of financing. The fourth is the dividend decision, which relates to how much a business should reinvest back into operations and how much should be returned to the owners. Finally, there is valuation, where all of the decisions made by a firm are traced through to a final value. You can navigate this site in many different ways.
You can start off with a big picture view of corporate finance, and click your way through the topics. There are several ways in which you can get the material on corporate finance.
1. Books:
If you are using one of my two corporate finance books, you can
go to the sites that support these books. You can also get supporting
material for these books on these sites.
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Corporate
Finance (First Edition)
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Description
of Book Corporate Finance Theory Web Site |
Description of Book Applied Corporate Finance Web Site |
2. Classes
I teach a corporate finance class spread over 27 sessions. You can visit the site for the class. You will find the lecture notes used in the class and watch the webcasts of the lectures.
Corporate Finance Class at Stern School of Business
3. Topic
You can also pick a topic to browse through material available
on the topic. The overheads and solutions to the problems are stored
in pdf format, and you need Adobe Acrobat to read pdf files. (You can download
Acrobat Reader directly from the Adobe site at http://www.adobe.com)
The spreadsheets are in Microsoft Excel format, and can be used on either
a Mac or Windows system.
The Objective Function | |
The Investment Decision: Measuring Hurdle Rates | |
The Investment Decison: Measuring Returns | |
The Financing Decision | |
The Dividend Decision | |
Valuation |
Alternatively, you can browse through by type of material:
Spreadsheets | Overheads | Datasets | References |
Problems & Solutions | Derivations and Discussion | Live Case Study |
Overheads | Download as pdf file |
Problems and Solutions |
Problems (Download solutions in pdf file) |
Derivations, In-Practice Questions and Discussion |
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Readings | |
Live Case Study | Analyzing a Company's Corporate Governance Structure |
Overheads | Download as pdf file |
Data Sets |
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Spreadsheets | |
Problems and Solutions |
Problems on Risk, Return and Hurdle Rates (Download solutions in pdf file) |
Derivations, In-Practice Questions and Discussion | Models of Risk and Return Applying Models of Risk and Return |
Readings | |
Live Case Study | Analyzing a Firm's Stockholders Developing a Firm's Risk Profile |
Overheads | Download as pdf file |
Data Sets | |
Spreadsheets | |
Problems and Solutions |
Problems on Measuring Investment Returns (Download solutions in pdf file) |
Derivations, In-Practice Questions and Discussion | Measurement of Project Returns Estimating Side Costs and Benefits |
Readings | |
Live Case Study | Measuring a Firm's Investment Returns |
Overheads | Download as pdf file |
Data Sets |
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Spreadsheets | |
Problems and Solutions |
Problems on Capital Structure: The Choices (Download solutions in pdf file |
Derivations, In-Practice Questions and Discussion | Capital Strucure: The Choices Capital Structure: The Optimal Mix Capital Structure: Moving to the Optimal |
Readings | |
Live Case Study | The Financing Decision Analyzing a Firm's Optimal Debt Ratio Developing a Firm's Financial Details |
Overheads | Download as pdf file |
Data Sets |
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Spreadsheets | |
Solutions to Problems |
Problems on Dividend Policy: The Trade Off (Download solutions in pdf file) |
Derivations, In-Practice Questions and Discussion | The Dividend Trade Off A Framework for Analyzing Dividend Policy |
Readings | |
Live Case Study | Analyzing a Firm's Dividend
Trade Offs Analyzing Dividend Policy |
Management Objectives (Download solutions in pdf file) |
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Present Value: Time Value of Money (Download solutions in pdf file) |
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Risk, Return and Hurdle Rates (Download solutions in pdf file) |
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Measuring Investment Returns (Download solutions in pdf file) |
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Capital Structure: The Choices (Download solutions in pdf file) |
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Capital Structure: The Optimal Mix (Download solutions in pdf file) |
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Capital Structure: Moving to the Optimal (Download solutions in pdf file) |
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Dividend Policy: The Trade Off (Download solutions in pdf file) |
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Dividend Policy: Framework for Analysis (Download solutions in pdf file) |
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Valuation (Download solutions in pdf file) |