Project Archive: Corporate Finance

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Corporate Finance

Subject: Finance

Audience: undergraduate business majors

Created date: July 9, 2021

Updated date: December 7, 2021


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Corporate Finance By Kenneth S. Bigel

Corporate Finance

follows up on the conceptual foundations set in

Introduction to Financial Analysis

. This text covers numerous topics that are critical for both Advanced Corporate Finance, for Financial Markets, and virtually every concept that is useful in the Finance discipline as a whole.

The text’s two major topics are Capital Budgeting and Capital Structure. Capital Budgeting covers the manner in which corporations choose optimal business investments in order to meet its growth aspirations. Capital Structure addresses the manner in which the corporation chooses to finance its growth objectives using one or another mix of debt and equity.

Both topics are relevant to financial markets for two reasons. One, the concepts are easily translated into identical mathematical formula which are readily adapted to financial markets. Two, the corporation itself must be understood in the context of investing in the securities which it issues. Our text also digs deeply into short-term corporate financial management.

Short Description:

Introductory textbook on Corporate Finance for undergraduate business and economics students.


Chap 0 Review of the Time Value of Money

Chap 1 Capital Budgeting

Payback, Net Present Value, Profitability Index, Internal Rate of Return, Project Scale, Modified Internal Rate of Return

Chap 2 Advanced Capital Budgeting

MIRR and Negative Interim Cash Flows, Reinvestment Rates, NPV Versus IRR, Replacement Chain Analysis and the Annual Annuity Approach, Limits of the Firm’s Capital, Spot Rates and the Spot Curve.

Chap 3 The Cost of Capital: Component- and Weighted-Average Capital Costs

Chap 4 Financial Leverage and Capital Structure

Chap 5 Leasing

Chap 6 Capital Structure Theory

Chap 7 Dividends and Capital Structure

Chap 8 Horizontal Capital Structure

Chap 9 Short-Term Financial Capital Management

Chapter 10 Operating Leverage

Appendix: Basic Financial Formulae