Corporate Finance

  1. Risk and Return
    1. Measuring Returns
      1. Dollar Returns
        1. Percentage Returns
          1. Holding Period Returns
            1. Average Returns
              1. Arithmetic Mean Returns
                1. Geometric Mean Returns
                2. Risk-Adjusted Returns
                3. Measuring Risk
                  1. Variance and Standard Deviation
                    1. Coefficient of Variation
                      1. Risk Premium
                        1. Value at Risk
                          1. Downside Risk Measures
                          2. Portfolio Theory
                            1. Expected Portfolio Return
                              1. Portfolio Risk
                                1. Variance of Portfolio Returns
                                  1. Covariance
                                    1. Correlation
                                    2. Diversification and Risk Reduction
                                      1. Benefits of Diversification
                                        1. Naive Diversification
                                          1. Optimal Diversification
                                            1. International Diversification
                                            2. Efficient Frontier
                                              1. Capital Allocation Line
                                                1. Systematic vs. Unsystematic Risk
                                                  1. Market Risk
                                                    1. Firm-Specific Risk
                                                      1. Total Risk Decomposition
                                                    2. The Capital Asset Pricing Model
                                                      1. Assumptions of CAPM
                                                        1. The Security Market Line
                                                          1. Beta as a Measure of Systematic Risk
                                                            1. Calculating Beta
                                                              1. Interpreting Beta
                                                                1. Beta Stability
                                                                2. Alpha and Abnormal Returns
                                                                  1. CAPM Applications
                                                                    1. Limitations of CAPM
                                                                    2. Alternative Asset Pricing Models
                                                                      1. Arbitrage Pricing Theory
                                                                        1. Fama-French Three-Factor Model
                                                                          1. Multi-Factor Models
                                                                          2. The Cost of Capital
                                                                            1. The Cost of Equity
                                                                              1. Dividend Growth Model
                                                                                1. CAPM Approach
                                                                                  1. Bond Yield Plus Risk Premium
                                                                                  2. The Cost of Debt
                                                                                    1. Yield to Maturity Approach
                                                                                      1. After-Tax Cost of Debt
                                                                                        1. Cost of Bank Loans
                                                                                        2. The Cost of Preferred Stock
                                                                                          1. The Weighted Average Cost of Capital
                                                                                            1. Calculating WACC
                                                                                              1. Market vs. Book Value Weights
                                                                                                1. Adjusting WACC for Project Risk
                                                                                                  1. Divisional Cost of Capital

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                                                                                              4. Valuation of Financial Assets

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                                                                                              6. Capital Budgeting: Investment Decisions