Corporate finance - Knowledge

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investments and projects so the company can continue to expand its business operations into the future. When companies reach maturity levels within their industry (i.e. companies that earn approximately average or lower returns on invested capital), managers of these companies will use surplus cash to payout dividends to shareholders. Managers must do an analysis to determine the appropriate allocation of the firm's capital resources and cash surplus between projects and payouts of dividends to shareholders, as well as paying back creditor related debt.

2776:. This represents the time difference between cash payment for raw materials and cash collection for sales. The cash conversion cycle indicates the firm's ability to convert its resources into cash. Because this number effectively corresponds to the time that the firm's cash is tied up in operations and unavailable for other activities, management generally aims at a low net count. (Another measure is gross operating cycle which is the same as net operating cycle except that it does not take into account the creditors deferral period.) 42: 1751:

when corporations invest equity capital and other funds into projects (or investments) that earn a positive rate of return for the owners. Investors prefer to buy shares of stock in companies that will consistently earn a positive rate of return on capital in the future, thus increasing the market value of the stock of that corporation. Shareholder value may also be increased when corporations payout excess cash surplus (funds from retained earnings that are not needed for business) in the form of dividends.

487: 1812: 1338: 1358: 5672: 5662: 1348: 1983:(EPS) are maximized. An emerging area in finance theory is right-financing whereby investment banks and corporations can enhance investment return and company value over time by determining the right investment objectives, policy framework, institutional structure, source of financing (debt or equity) and expenditure framework within a given economy and under given market conditions. 2272:, each management decision in response to an "event" generates a "branch" or "path" which the company could follow; the probabilities of each event are determined or specified by management. Once the tree is constructed: (1) "all" possible events and their resultant paths are visible to management; (2) given this "knowledge" of the events that could follow, and assuming 2476:, etc.). As an example, the analyst may specify various revenue growth scenarios (e.g. -5% for "Worst Case", +5% for "Likely Case" and +15% for "Best Case"), where all key inputs are adjusted so as to be consistent with the growth assumptions, and calculate the NPV for each. Note that for scenario based analysis, the various combinations of inputs must be 1734:

annual installments of the borrowed debt above regular interest charges. Corporations that issue callable bonds are entitled to pay back the obligation in full whenever the company feels it is in their best interest to pay off the debt payments. If interest expenses cannot be made by the corporation through cash payments, the firm may also use

1473:. The typical role of an investment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fits those needs. Thus, the terms "corporate finance" and "corporate financier" may be associated with transactions in which capital is raised in order to create, develop, grow or acquire businesses. 2204:). Even when employed, however, these latter methods do not normally properly account for changes in risk over the project's lifecycle and hence fail to appropriately adapt the risk adjustment. Management will therefore (sometimes) employ tools which place an explicit value on these options. So, whereas in a DCF valuation the 2096:(WACC) to reflect the financing mix selected. (A common error in choosing a discount rate for a project is to apply a WACC that applies to the entire firm. Such an approach may not be appropriate where the risk of a particular project differs markedly from that of the firm's existing portfolio of assets.) 2625:(excess cash) and influenced by the company's long-term earning power. When cash surplus exists and is not needed by the firm, then management is expected to pay out some or all of those surplus earnings in the form of cash dividends or to repurchase the company's stock through a share buyback program. 2767:

The (short term) goals of working capital are therefore not approached on the same basis as (long term) profitability, and working capital management applies different criteria in allocating resources: the main considerations are (1) cash flow / liquidity and (2) profitability / return on capital (of

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In general this is as follows: As above, the goal of Corporate Finance is the maximization of firm value. In the context of long term, capital budgeting, firm value is enhanced through appropriately selecting and funding NPV positive investments. These investments, in turn, have implications in terms

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or secondary stocks would prefer the management of these companies to payout surplus earnings in the form of cash dividends when a positive return cannot be earned through the reinvestment of undistributed earnings. A share buyback program may be accepted when the value of the stock is greater than

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Choosing between investment projects will thus be based upon several inter-related criteria. (1) Corporate management seeks to maximize the value of the firm by investing in projects which yield a positive net present value when valued using an appropriate discount rate in consideration of risk. (2)

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Working capital is the amount of funds that are necessary for an organization to continue its ongoing business operations, until the firm is reimbursed through payments for the goods or services it has delivered to its customers. Working capital is measured through the difference between resources

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that increase the firm's long term profitability and sustainability, along with paying excess cash in the form of dividends to shareholders. Managers of growth companies (i.e. firms that earn high rates of return on invested capital) will use most of the firm's capital resources and surplus cash on

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Corporations can alternatively sell shares of the company to investors to raise capital. Investors, or shareholders, expect that there will be an upward trend in value of the company (or appreciate in value) over time to make their investment a profitable purchase. Shareholder value is increased

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payments (interest expenses) on the borrowed capital until the debt reaches its maturity date, therein the firm must pay back the obligation in full. One exception is zero-coupon bonds (or "zeros"). Debt payments can also be made in the form of sinking fund provisions, whereby the corporation pays

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Capital budgeting is also concerned with the setting of criteria about which projects should receive investment funding to increase the value of the firm, and whether to finance that investment with equity or debt capital. Investments should be made on the basis of value-added to the future of the

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These projects must also be financed appropriately. (3) If no growth is possible by the company and excess cash surplus is not needed to the firm, then financial theory suggests that management should return some or all of the excess cash to shareholders (i.e., distribution via dividends).

1636:. When no growth or expansion is possible by a corporation and excess cash surplus exists and is not needed, then management is expected to pay out some or all of those surplus earnings in the form of cash dividends or to repurchase the company's stock through a share buyback program. 3349:), p. 17. As Mark Smith (2003) notes, "the first joint-stock companies had actually been created in England in the sixteenth century. These early joint-stock firms, however, possessed only temporary charters from the government, in some cases for one voyage only. (One example was the 2620:

Dividend policy is concerned with financial policies regarding the payment of a cash dividend in the present or paying an increased dividend at a later stage. Whether to issue dividends, and what amount, is determined mainly on the basis of the company's unappropriated

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exceed the hurdle rate, and excess cash surplus is not needed, then – finance theory suggests – management should return some or all of the excess cash to shareholders as dividends. This is the general case, however there are exceptions. For example, shareholders of a

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released a statement, signed by 181 prominent U.S. CEOs, which committed to lead their companies for "the benefit of all stakeholders". Despite intense debate and recent momentum for the stakeholder theory, shareholder theory still dominates corporate world strategy.

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Similar to bonds, preferred stocks are rated by the major credit-rating companies. The rating for preferreds is generally lower, since preferred dividends do not carry the same guarantees as interest payments from bonds and they are junior to all creditors.

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projects, a project may open (or close) various paths of action to the company, but this reality will not (typically) be captured in a strict NPV approach. Some analysts account for this uncertainty by adjusting the discount rate (e.g. by increasing the

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and other sensitivities – is then observed. This histogram provides information not visible from the static DCF: for example, it allows for an estimate of the probability that a project has a net present value greater than zero (or any other value).

4228: 2996:. Here, businesses actively manage any impact on profitability, cash flow, and hence firm value, due to credit and operational factors - this, overlapping "working capital management" to a large extent. Firms then devote much time and effort to 3353:, chartered in England in 1533 for trade with Russia; another, chartered the same year, was a company with the intriguing title Guinea Adventurers.) The Dutch East India Company was the first joint-stock company to have a permanent charter." 1729:) as sources of investment to sustain ongoing business operations or to fund future growth. Debt comes in several forms, such as through bank loans, notes payable, or bonds issued to the public. Bonds require the corporation to make regular 4362: 1823:

Management must identify the "optimal mix" of financing – the capital structure that results in maximum firm value, - but must also take other factors into account (see trade-off theory below). Financing a project through debt results in a

2931:– i.e. with transactions in which capital is raised for the corporation or shareholders; the services themselves are often referred to as advisory, financial advisory, deal advisory and transaction advisory services. See under 2539:. Here, the cash flow components that are (heavily) impacted by uncertainty are simulated, mathematically reflecting their "random characteristics". In contrast to the scenario approach above, the simulation produces several 2267:

production otherwise. In turn, given further demand, it would similarly expand the factory, and maintain it otherwise. In a DCF model, by contrast, there is no "branching" – each scenario must be modelled separately.) In the

1694:). However, as above, since both hurdle rate and cash flows (and hence the riskiness of the firm) will be affected, the financing mix will impact the valuation of the firm, and a considered decision is required here. See 2745:

in cash or readily convertible into cash (Current Assets), and cash requirements (Current Liabilities). As a result, capital resource allocations relating to working capital are always current, i.e. short-term.

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as specified (usually at set increments, e.g. -10%, -5%, 0%, 5%...), and then determine the sensitivity using this formula. Often, several variables may be of interest, and their various combinations produce a

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or obligation that must be serviced, thus entailing cash flow implications independent of the project's degree of success. Equity financing is less risky with respect to cash flow commitments, but results in a

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The primary goal of financial management is to maximize or to continually increase shareholder value. Maximizing shareholder value requires managers to be able to balance capital funding between investments in

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Preferred stock is a specialized form of financing which combines properties of common stock and debt instruments, and is generally considered a hybrid security. Preferreds are senior (i.e. higher ranking) to

2664:. Financial theory suggests that the dividend policy should be set based upon the type of company and what management determines is the best use of those dividend resources for the firm to its shareholders. 2839:. Identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials – and minimizes reordering costs – and hence increases cash flow. See discussion under 2072:. Thus, identifying the proper discount rate – often termed, the project "hurdle rate" – is critical to choosing appropriate projects and investments for the firm. The hurdle rate is the minimum acceptable 4225: 2676:

the returns to be realized from the reinvestment of undistributed profits. In all instances, the appropriate dividend policy is usually directed by that which maximizes long-term shareholder value.

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A further advancement which "overcomes the limitations of sensitivity and scenario analyses by examining the effects of all possible combinations of variables and their realizations" is to construct

4359: 2883:. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank 2984:. The discipline is thus related to corporate finance, both re operations and funding, as below; and in large firms, the risk management function then overlaps "Corporate Finance", with the 1786:

Preferred stock is a special class of shares which may have any combination of features not possessed by common stock. The following features are usually associated with preferred stock:

5076: 4261: 2861:, i.e. credit terms which will attract customers, such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital (or 1496:

is the reporting of historical financial information, while financial management is concerned with the deployment of capital resources to increase a firm's value to the shareholders.

2656:, firms may elect to retain earnings or to perform a stock buyback, in both cases increasing the value of shares outstanding. Alternatively, some companies will pay "dividends" from 3937: 1649:

value should be the primary focus of corporate managers, with stakeholders widely interpreted to refer to shareholders, employees, suppliers and the local community. In 2019, the

4394: 3909: 3754: 2582:– so as to generate several thousand random but possible scenarios, with corresponding valuations, which are then used to generate the NPV histogram. The resultant statistics ( 3023:

Firm exposure to market (and business) risk is a direct result of previous capital investments and funding decisions: where applicable here, typically in large corporates and

2637:", expect that the company will, almost by definition, retain most of the excess cash surplus so as to fund future projects internally to help increase the value of the firm. 2424:. The sensitivity of NPV to a change in that factor is then observed, and is calculated as a "slope": ΔNPV / Δfactor. For example, the analyst will determine NPV at various 1949:

when choosing how to allocate the company's resources. However economists have developed a set of alternative theories about how managers allocate a corporation's finances.

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of NPV) will be a more accurate mirror of the project's "randomness" than the variance observed under the scenario based approach. These are often used as estimates of the

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Continuing the above example: instead of assigning three discrete values to revenue growth, and to the other relevant variables, the analyst would assign an appropriate

2355:. (3) The "true" value of the project is then the NPV of the "most likely" scenario plus the option value. (Real options in corporate finance were first discussed by 1632:

corporation. Projects that increase a firm's value may include a wide variety of different types of investments, including but not limited to, expansion policies, or

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Guided by the above criteria, management will use a combination of policies and techniques for the management of working capital. These policies aim at managing the

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See "III.A.1.7 Market Risk Management in Non-financial Firms", in Carol Alexander, Elizabeth Sheedy eds. "The Professional Risk Managers’ Handbook" 2015 Edition.

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Myers, Stewart C. "Interactions of corporate financing and investment decisions—implications for capital budgeting." The Journal of finance 29.1 (1974): 1-25.

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it is used, as above, to describe activities, analytical methods and techniques that deal with many aspects of a company's finances and capital. In the

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Achieving the goals of corporate finance requires that any corporate investment be financed appropriately. The sources of financing are, generically,

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would prefer managers to retain earnings and pay no dividends (use excess cash to reinvest into the company's operations), whereas shareholders of

2547: 2851:: given the potential impact on cash flow, and on the balance sheet in general, finance typically "gets involved in an oversight or policing way". 4430: 1994:

literature, states that firms look for the cheaper type of financing regardless of their current levels of internal resources, debt and equity.

3328:, p. 15. "Moreover, their company was a permanent joint-stock company, unlike the English company, which did not become permanent until 1650." 4391: 2397: 1596: 4808: 4204: 4539: 4340: 4297: 2442: 1624:" is the planning of value-adding, long-term corporate financial projects relating to investments funded through and affecting the firm's 454: 2077: 2163:). With the cost of capital correctly and correspondingly adjusted, these valuations should yield the same result as the DCF. See also 17: 2787:(ROE) shows this result for the firm's shareholders. As above, firm value is enhanced when, and if, the return on capital exceeds the 3906: 2221: 4166: 4329: 4276: 3537: 1592: 5049: 1560:

acted as a center of corporate finance for companies around the world, which innovated new forms of lending and investment; see

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Smith, Clifford W.; Jensen, Michael C. (2000-09-29). "The Theory of Corporate Finance: A Historical Overview". Rochester, NY.

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but possible outcomes, or trials, "covering all conceivable real world contingencies in proportion to their likelihood;" see

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As mentioned, the financing mix will impact the valuation of the firm: there are then two interrelated considerations here:

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alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.

4155: 4121: 2783:(ROC). The result is shown as a percentage, determined by dividing relevant income for the 12 months by capital employed; 3036: 3005: 4867: 4841: 4818: 4797: 4782: 4743: 4684: 4665: 4646: 4624: 4570: 4527: 4462: 3856: 2948: 2516: 5002:

Graham, John R.; Harvey, Campbell R. (1999). "The Theory and Practice of Corporate Finance: Evidence from the Field".

2976:, focusing on the financial exposures and opportunities arising from business decisions, and their link to the firm’s 2831:. Identify the cash balance which allows for the business to meet day to day expenses, but reduces cash holding costs. 2756:

and profitability considerations; decisions here are also "reversible" to a much larger extent. (Considerations as to

2579: 2492:" NPV, where management determines a (subjective) probability for each scenario – the NPV for the project is then the 2488:), whereas for the sensitivity approach these need not be so. An application of this methodology is to determine an " 2007: 4953: 4907: 4762: 4705: 4489: 4418: 4055: 3719: 3547: 3399: 3371: 3346: 1587:, developed in the second half of the 20th century, particularly driven by innovations in theory and practice in the 1387: 5543: 4072:

Schaum's quick guide to business formulas: 201 decision-making tools for business, finance, and accounting students

2116: 2093: 1873: 1699: 1530: 4014: 3076: 1857:– and so equity financing may result in an increased hurdle rate which may offset any reduction in cash flow risk. 5025: 4614: 4454: 3206: 2364: 551: 447: 3081: 2599: 5456: 4996: 4929: 3736: 3493: 3309: 3288: 3264: 3168: 3013: 2691: 2389: 2344: 1415:, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to 1135: 886: 103: 58: 4142: 3755:"Business Roundtable Redefines the Purpose of a Corporation to Promote 'An Economy That Serves All Americans'" 3232: 3044: 3040: 2084:

of cash flows, and must take into account the project-relevant financing mix. Managers use models such as the

5602: 3841: 2100: 1702:. Finally, there is much theoretical discussion as to other considerations that management might weigh here. 1289: 1232: 5396: 4127: 3136: 3066: 2720:. The goal of Working Capital (i.e. short term) management is therefore to ensure that the firm is able to 1513: 1259: 636: 5120: 4360:

Best-Practice Working Capital Management: Techniques for Optimizing Inventories, Receivables, and Payables

2281: 5513: 3852:"Preferred Stock ... generally carries no voting rights unless scheduled dividends have been omitted." – 3211: 3024: 2932: 2910: 2527:

in 1964, although it has only recently become common: today analysts are even able to run simulations in

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Optimal Balance of Financial Instruments: Long-Term Management, Market Volatility & Proposed Changes

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available and avoid new equity financing while they can engage in new debt financing at reasonably low

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forecasts of NPV. Here, a scenario comprises a particular outcome for economy-wide, "global" factors (

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being financed as closely as possible, in terms of both timing and cash flows. Managing any potential

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is concerned with the setting of criteria about which value-adding projects should receive investment

5647: 5632: 5622: 5461: 5276: 4695: 4479: 4217: 4047: 3191: 2953: 2811: 2136: 2108: 2104: 1628:. Management must allocate the firm's limited resources between competing opportunities (projects). 943: 778: 4337: 4245: 3441: 5665: 5642: 5580: 5406: 5331: 5291: 5271: 4851: 4378: 3951: 3244: 3071: 2866: 2563: 2228:. The difference between the two valuations is the "value of flexibility" inherent in the project. 2089: 2040: 1987: 1946: 1905: 1865: 1844: 1633: 1351: 893: 812: 98: 4220:

sometimes employ the "Hill of Value" methodology in their planning; see, e.g., B. E. Hall (2003).

2481: 2058: 2053:). These present values are then summed, and this sum net of the initial investment outlay is the 5376: 5366: 5336: 5306: 5246: 4554: 3940:, Nishant Choudhary, LL.M. 2011 (Business & finance), George Washington University Law School 3917: 2924: 2844: 2567: 2348: 2201: 2112: 1645: 1573: 1534: 1140: 783: 571: 418: 4226:"A Practical Application of an Economic Optimisation Model in an Underground Mining Environment" 3985: 3828: 3646: 3594: 2602:. A more robust Monte Carlo model would include the possible occurrence of risk events (e.g., a 2446: 5617: 5518: 5381: 5219: 5189: 4313: 4039: 3201: 3048: 2840: 2724:, and that it has sufficient cash flow to service long-term debt, and to satisfy both maturing 2340: 2236: 2225: 2156: 2120: 1885: 1825: 277: 124: 3620: 3483: 2927:

countries, the terms "corporate finance" and "corporate financier" tend to be associated with

5533: 5011: 4982: 3567: 3510: 3456: 3428: 3420: 3032: 2848: 2773: 2721: 2434: 2178: 2152: 2029: 1584: 1489: 1380: 1314: 1075: 1013: 973: 832: 611: 601: 352: 217: 166: 154: 88: 3389: 1462:, and short-term borrowing and lending (such as the terms on credit extended to customers). 5555: 5550: 5054: 4991:, edited by Michael C. Jensen and Clifford H. Smith Jr., pp. 2–20. McGraw-Hill, 1990. 4026: 3121: 3111: 3096: 2973: 2733: 2629: 2555: 2497: 2489: 2415: 2381: 2197: 2144: 2128: 2081: 2073: 2069: 2021: 2011: 1953: 1942: 1735: 1691: 1509: 1493: 1485: 1446:

management is the management of the company's monetary funds that deal with the short-term

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and return targets remain identical, although some constraints – such as those imposed by

2024:(DCF) valuation, and the opportunity with the highest value, as measured by the resultant 8: 5505: 4284: 4174: 3240: 3017: 2753: 2728:

and upcoming operational expenses. In so doing, firm value is enhanced when, and if, the

2622: 2520: 2276:, management chooses the branches (i.e. actions) corresponding to the highest value path 2124: 2050: 1917: 1650: 1542: 1519: 1447: 1420: 1304: 1130: 1120: 1070: 1008: 717: 586: 531: 413: 383: 332: 5039: 4413:

William Lasher (2010). Practical Financial Management. South-Western College Pub; 6 ed.

4163: 3592: 2080:. The hurdle rate should reflect the riskiness of the investment, typically measured by 1986:

One of the more recent innovations in this area from a theoretical point of view is the

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Empire: The Rise and Demise of the British World Order and the Lessons for Global Power

3158: 3126: 3116: 3086: 2997: 2985: 2928: 2736:(EVA). Managing short term finance and long term finance is one task of a modern CFO. 2587: 2485: 2411: 2368: 2213: 2140: 2003: 1991: 1980: 1965: 1961: 1925: 1881: 1854: 1720: 1675: 1669: 1561: 1505: 1477: 1470: 1279: 1254: 1150: 1145: 1033: 1018: 993: 958: 746: 566: 471: 423: 252: 171: 144: 93: 5612: 4827: 4066:

See: §32 "Certainty Equivalent Approach" & §165 "Risk Adjusted Discount Rate" in:

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cash flows are discounted, here the "flexible and staged nature" of the investment is

1565: 5607: 5592: 5523: 5466: 5411: 5386: 5356: 5346: 5256: 5239: 5160: 5155: 5115: 5110: 5097: 5007: 4992: 4978: 4970: 4949: 4925: 4903: 4863: 4837: 4814: 4793: 4778: 4758: 4739: 4701: 4680: 4661: 4642: 4620: 4588: 4566: 4562: 4523: 4485: 4458: 4414: 4077: 4070: 4051: 4002: 3967: 3886: 3799: 3715: 3708: 3686: 3626: 3600: 3573: 3543: 3516: 3489: 3462: 3416: 3395: 3367: 3342: 3305: 3284: 3260: 2888: 2780: 2729: 2709: 2571: 2453: 2385: 2339:; (2) an appropriate valuation technique is then employed – usually a variant on the 2295: 2209: 2054: 2025: 1909: 1877: 1683: 1663: 1625: 1621: 1577: 1546: 1455: 1427: 1416: 1404: 1357: 1187: 1028: 998: 646: 408: 388: 312: 212: 197: 149: 108: 3795: 3705: 2429: 2331:

as a framework, the decision to be taken is identified as corresponding to either a

2327:. Again, a DCF valuation would capture only one of these outcomes.) Here: (1) using 1952:

One of the main alternative theories of how firms manage their capital funds is the

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Carlos Correia; David K. Flynn; Enrico Uliana; Michael Wormald (15 January 2007).

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Use of the term "corporate finance" varies considerably across the world. In the

2827: 2822:) and the short term financing, such that cash flows and returns are acceptable. 2788: 2717: 2697: 2685: 2615: 2554:

of project NPV, and the average NPV of the potential investment – as well as its

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between the variables. These distributions would then be "sampled" repeatedly –

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inherent in project forecasting and valuation, analysts will wish to assess the

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assets as a form of repaying their debt obligations (or through the process of

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Baskin, Jonathan; Baskin, Jonathan Barron; Miranti, Paul J. Jr. (1999-12-28).

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the analyst will vary one key factor while holding all other inputs constant,

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in 1977; viewing corporate strategy as a series of options was originally per

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In conjunction with NPV, there are several other measures used as (secondary)

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to estimate a discount rate appropriate for a particular project, and use the

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A long-standing debate in corporate finance has focused on whether maximizing

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and may have priority over common stock in the payment of dividends and upon

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Capitals of Capital: A History of International Financial Centres, 1780–2005

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The Role of Risk in Capital Budgeting - Scenario and Simulation Assessments

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Probabilistic Approaches: Scenario Analysis, Decision Trees and Simulations

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for the mechanics, with discussion re modifications for corporate finance.

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in terms of claim (or rights to their share of the assets of the company).

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Tim Koller, Marc Goedhart, David Wessels (McKinsey & Company) (2020).

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and I. Ballington, E. Bondi, J. Hudson, G. Lane and J. Symanowitz (2004).

4222:"How Mining Companies Improve Share Price by Destroying Shareholder Value" 5391: 5361: 5204: 5135: 4917: 4859: 3339:

A History of the Global Stock Market: From Ancient Rome to Silicon Valley

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Professional certification in financial services § Corporate finance

2981: 2961: 2957: 2772:

The most widely used measure of cash flow is the net operating cycle, or

2672: 2575: 2528: 2403: 2332: 2277: 2260: 1979:

hypothesizes that management manipulates the capital structure such that

1921: 1776: 1739: 1412: 1264: 1155: 1125: 736: 621: 556: 506: 357: 327: 322: 287: 4067: 2857:. There are two inter-related roles here: (1) Identify the appropriate 2752:, working capital management differs from capital budgeting in terms of 2504:, where cash flows, as opposed to scenarios, are probability-weighted.) 2398:

Discrete-event simulation § Evaluating capital investment decisions

2028:(NPV) will be selected (first applied in a corporate finance setting by 1426:

Correspondingly, corporate finance comprises two main sub-disciplines.

5637: 5597: 5401: 5351: 5321: 5199: 4891: 3921: 2595: 2591: 2523:

to analyze the project's NPV. This method was introduced to finance by

2508: 2336: 2300: 2148: 1716: 1403:

is the area of finance that deals with the sources of funding, and the

741: 3881:

Kieso, Donald E.; Weygandt, Jerry J. & Warfield, Terry D. (2007).

2280:; (3) this path is then taken as representative of project value. See 1518:

Corporate finance for the pre-industrial world began to emerge in the

41: 5371: 5234: 4939: 3925: 2815: 2551: 2473: 2465: 2264: 2263:

for its product exceeded a certain level during the pilot-phase, and

2217: 2036: 2032:

in 1951). This requires estimating the size and timing of all of the

1459: 854: 676: 4969: 4943: 3302:

The Declaration of Dependence: Dividends in the Twenty-First Century

2519:

models as above. For this purpose, the most common method is to use

2394:

Valuation using discounted cash flows § Determine equity value

1860:

Management must attempt to match the long-term financing mix to the

5421: 5316: 5301: 3998: 2992:

Both areas share the goal of enhancing, and preserving, the firm's

2645: 2410:

of project NPV to the various inputs (i.e. assumptions) to the DCF

2200:, or applying (subjective) "haircuts" to the forecast numbers; see 1772: 1730: 1538: 898: 731: 68: 27:

Framework for corporate funding, capital structure, and investments

5001: 4579: 3922:

A Generalised Procedure for Locating the Optimal Capital Structure

3678: 2700:

position to sustain ongoing business operations is referred to as

2531:

based DCF models, typically using a risk-analysis add-in, such as

2131:. Alternatives (complements) to NPV, which more directly consider 1771:

Preferred stock usually carries no voting rights, but may carry a

5251: 3706:

Lawrence J. Gitman; Michael D. Joehnk; George E. Pinches (1985).

3106: 3009: 3001: 2583: 2017: 1609: 1480:

which studies the financial management of all firms, rather than

1431: 1217: 988: 591: 134: 4068:

Joel G. Siegel; Jae K. Shim; Stephen Hartman (1 November 1997).

3780:"Where Does the Value of A Corporation Lie? A Literature Review" 2988:

consulted on capital-investment and other strategic decisions.

2628:

If there are no NPV positive opportunities, i.e. projects where

2606:) that drive variations in one or more of the DCF model inputs. 4806: 4143:

Schaum's outline of theory and problems of financial management

3885:(12th ed.). New York: John Wiley & Sons. p. 738. 3461:. Cambridge, UK: Cambridge University Press. pp. 1, 74–5. 2819: 2543: 2457: 2308: 2188: 1557: 768: 4828:

Pascal Quiry; Yann Le Fur; Antonio Salvi; Maurizio Dallochio;

4639:

Corporate Finance: Economic Foundations and Financial Modeling

1529:

The Dutch East India Company (also known by the abbreviation "

1407:

of businesses, the actions that managers take to increase the

5150: 4519: 4434: 2779:

In this context, the most useful measure of profitability is

2598:" and volatility for the real option valuation as above; see 1861: 876: 827: 5084: 4675:

Thomas E. Copeland; J. Fred Weston; Kuldeep Shastri (2004).

4246:

Using Monte Carlo simulation for a capital budgeting project

2515:

financial models – as opposed to the traditional static and

2039:

resulting from the project. Such future cash flows are then

1549:. Public markets for investment securities developed in the 4105:

Capital Budgeting and Initial Cash Outlay (ICO) Uncertainty

3508: 3502: 2899: 2884: 2807: 2704:. These involve managing the relationship between a firm's 2644:

of the dividend distribution, as stated, generally as cash

2501: 2312: 1678:

and capital from external funders, obtained by issuing new

1439: 1085: 923: 849: 478: 4553: 4164:

How Do You Assess The Value of A Company's "Real Options"?

3378:

first issued permanent shares in 1657 (Harris, 2005: 45)."

4160:

Applications of option pricing theory to equity valuation

4027:

Real Options Analysis and the Assumptions of the NPV Rule

2935:

for a listing of the various transaction-types here, and

2887:(or overdraft), or to "convert debtors to cash" through " 2574:), and, where possible, specify the observed or supposed 2324: 1937:

Much of the theory here, falls under the umbrella of the

1725:

Corporations may rely on borrowed funds (debt capital or

5050:

Corporate Finance Overview - Corporate Finance Institute

4774:

Valuation: Measuring and Managing the Value of Companies

4694:

Julie Dahlquist, Rainford Knight, Alan S. Adams (2022).

4478:

Julie Dahlquist, Rainford Knight, Alan S. Adams (2022).

3679:

Pamela P. Peterson; Frank J. Fabozzi (4 February 2004).

4788:

Joseph Ogden; Frank C. Jen; Philip F. O'Connor (2002).

2968:. Within corporates, the scope is broadened to overlap 2877:

on any new business is acceptable given these criteria.

2315:; if the price is too low, management will abandon the 4975:

The Theory of Corporate Finance: A Historical Overview

4658:

The New Corporate Finance: Where Theory Meets Practice

4437:, April 2005 (revised January 2011 and September 2020) 4103:

Michael C. Ehrhardt and John M. Wachowicz, Jr (2006).

4044:

Strategic Risk Taking: A Framework for Risk Management

3880: 3539:

The City: A Guide to London's Global Financial Centre

3515:. New York, NY: Oxford University Press. p. 13. 2956:, generically, is focused on measuring and managing 4244:

Virginia Clark, Margaret Reed, Jens Stephan (2010).

4137: 4135: 3027:

their investment bankers, firms actively manage and

5004:

AFA 2001 New Orleans; Duke University Working Paper

4752: 3672: 3387: 3077:

Financial economics § Corporate finance theory

2287:ROV is usually used when the value of a project is 1997: 4069: 3999:Campbell R. Harvey's Hypertextual Finance Glossary 3707: 3082:Outline of finance § Corporate finance theory 2972:, and then addresses risks to the firm's overall 2949:Financial risk management § Corporate finance 2008:Mergers and acquisitions § Business valuation 4188: 4186: 4132: 3778:Chuma, Casius; Qutieshat, Abubaker (2023-03-30). 2768:which cash flow is probably the most important). 2548:Monte Carlo Simulation versus "What If" Scenarios 1793:Preference in assets, in the event of liquidation 5688: 4728: 4429:Shaun Beaney, Katerina Joannou and David Petrie 4238: 3874: 3699: 3586: 3561: 3559: 2847:. Note that "inventory" is usually the realm of 2795: 2259:. (For example, a company would build a factory 1896:, as discussed below. Other techniques, such as 4355: 4353: 3454: 2282:Decision theory § Choice under uncertainty 2239:(ROV); they may often be used interchangeably: 1893: 4854:, Randolph Westerfield, Jeffrey Jaffe (2012). 4655: 4298:4 Reasons a Company Might Suspend Its Dividend 4183: 4060: 3777: 3281:The Business Book (Big Ideas Simply Explained) 2692:Cash flow forecasting § Corporate finance 2600:Real options valuation § Valuation inputs 1833:of share ownership, control and earnings. The 1434:, and whether to finance that investment with 5070: 4890: 4633: 4451:The AMA Handbook of Financial Risk Management 4248:, Management Accounting Quarterly, Fall, 2010 3840:Drinkard, T., A Primer On Preferred Stocks., 3622:Financial Management; Principles and Practice 3565: 3556: 2679: 2452:Using a related technique, analysts also run 2107:. These are visible from the DCF and include 1876:respectively according to maturity pattern (" 1799:Callability, at the option of the corporation 1597:History of private equity and venture capital 1591:and Britain. Here, see the later sections of 1564:. The twentieth century brought the rise of 1381: 448: 4882:: CS1 maint: multiple names: authors list ( 4755:Theoretical Foundations of Corporate Finance 4720:: CS1 maint: multiple names: authors list ( 4540:Dangers of Corporate Derivative Transactions 4504:: CS1 maint: multiple names: authors list ( 4350: 3625:. Freeload Press, Inc. 1968. pp. 265–. 3509:Cameron, Rondo; Bovykin, V.I., eds. (1991). 3448: 2942: 2911:Investment banking § Corporate finance 1941:in which firms are assumed to trade-off the 1488:overlaps with the financial function of the 4916: 3529: 3414: 2937:Financial analyst § Investment Banking 2933:Investment banking § Corporate finance 1806: 1476:Although it is in principle different from 5671: 5661: 5077: 5063: 4973:; Smith. Clifford W. (29 September 2000). 4807:C. Krishnamurti; S. R. Vishwanath (2010). 4445: 4443: 4032: 3737:"The Shareholders vs. Stakeholders Debate" 3651:The Investment Decision of the Corporation 3647:Investment Decisions and Capital Budgeting 2375: 1388: 1374: 455: 441: 4938: 4474:Risk Management and the Financial Manager 4467: 4392:The 20 Principles of Financial Management 4256: 4254: 3818:The Financing Decision of the Corporation 3364:The SAGE Handbook of Corporate Governance 2667:As a general rule, then, shareholders of 1932: 1815:Domestic credit to private sector in 2005 718:Transaction (checking / current) 4141:"Capital Budgeting Under Risk". Ch.9 in 4114: 2900:Relationship with other areas in finance 2319:, if sufficiently high, management will 2243:DTA values flexibility by incorporating 2105:Capital budgeting § Ranked projects 1810: 4440: 3542:. Economist. pp. 6, 12–13, 88–89. 3535: 3485:The Global Securities Market: A History 2351:type formulae are used less often; see 1593:History of banking in the United States 1541:. The VOC was also the first recorded 1514:Mergers and acquisitions § History 14: 5689: 4989:The Modern Theory of Corporate Finance 4834:Corporate Finance: Theory and Practice 4735:Corporate Finance: Theory and Practice 4660:(3rd ed.). Non Basic Stock Line. 4407: 4267: 4251: 3682:Capital Budgeting: Theory and Practice 3481: 3341:. (University of Chicago Press, 2003, 2873:policies and techniques such that the 2311:project is contingent on the price of 2172: 1888:"); managing this relationship in the 1458:; the focus here is on managing cash, 5058: 4677:Financial Theory and Corporate Policy 4587:(Second ed.). World Scientific. 4512: 3949: 3734: 3599:. Juta and Company Ltd. pp. 5–. 3569:Financial Management: An Introduction 2904: 2063:Valuation using discounted cash flows 1977:capital structure substitution theory 1705: 177:Valuation using discounted cash flows 4262:Quantifying Corporate Financial Risk 4123:Calculating value during uncertainty 3257:Introduction to Financial Technology 3072:Financial economics § Certainty 2059:Financial modeling § Accounting 2020:'s" value will be estimated using a 1847:) is also typically higher than the 1657: 1583:Modern corporate finance, alongside 1347: 4896:The Revolution in Corporate Finance 4029:, Tom Arnold & Richard Shockley 3566:Jim McMenamin (11 September 2002). 3233:Corporate Finance: First Principles 3197:List of Corporate finance theorists 2068:The NPV is greatly affected by the 1990:. This hypothesis, inspired by the 1960:), which suggests that firms avoid 24: 4963: 4777:(7th ed.). John Wiley & Sons. 3362:Clarke, Thomas; Branson, Douglas: 3277:DK Publishing (Dorling Kindersley) 2739: 2609: 1754: 1676:capital self-generated by the firm 25: 5708: 5019: 4145:, Jae K. Shim and Joel G. Siegel. 3952:"New issues in corporate finance" 2732:exceeds the cost of capital; See 2078:project appropriate discount rate 1745: 1526:of Europe from the 15th century. 5670: 5660: 4381:, Benjamin Graham and David Dodd 4128:IBM Institute for Business Value 3512:International Banking: 1870–1914 3366:. (SAGE Publications Ltd., 2012 3207:List of corporate finance topics 2640:Management must also choose the 2363:, in the late 1990s.) See also 2094:weighted average cost of capital 1998:Investment and project valuation 1872:entails matching the assets and 1465:The terms corporate finance and 1356: 1346: 1337: 1336: 485: 40: 4922:The Theory of Corporate Finance 4616:Principles of Corporate Finance 4547: 4532: 4455:American Management Association 4423: 4384: 4372: 4369:, Patrick Buchmann and Udo Jung 4319: 4306: 4290: 4210: 4198: 4148: 4097: 4019: 4007: 3991: 3974: 3943: 3930: 3907:Capital Structure: Implications 3900: 3865: 3846: 3834: 3810: 3771: 3747: 3728: 3663: 3639: 3613: 3475: 2939:for a description of the role. 1796:Convertibility to common stock. 1710: 1568:and common stock finance, with 1510:Financial centre § History 5457:Debtor-in-possession financing 4924:. Princeton University Press. 4757:. Princeton University Press. 4583:; Bernt Arne Ødegaard (2006). 3408: 3394:. Cambridge University Press. 3391:A History of Corporate Finance 3381: 3356: 3331: 3315: 3294: 3270: 3249: 3225: 3169:Strategic financial management 2764:– may be more relevant here). 2580:incorporating this correlation 2496:of the various scenarios; see 2472:for company-specific factors ( 2390:Monte Carlo methods in finance 2231:The two most common tools are 1136:Strategic financial management 104:Strategic financial management 59:Asset and liability management 13: 1: 4585:Lectures on Corporate Finance 4433:, Corporate Finance Faculty, 3796:10.13132/2038-5498/14.1.15-32 3735:Smith, H. Jeff (2003-07-15). 3304:. (Archway Publishing, 2015, 3219: 3031:these exposures using traded 2980:, as well as their impact on 2869:. (2) Implement appropriate 2796:Management of working capital 2443:function of several variables 2076:on an investment – i.e., the 1562:City of London § Economy 1290:Sustainable development goals 5397:Staggered board of directors 4753:João Amaro de Matos (2001). 4656:Donald H. Chew, ed. (2000). 4296:Claire Boyte-White (2023). 4158:, Prof. Campbell R. Harvey; 4076:. McGraw-Hill Professional. 3968:10.1016/0014-2921(88)90077-3 3649:, Prof. Campbell R. Harvey; 3137:Financial statement analysis 3067:Outline of corporate finance 2494:probability-weighted average 2216:, and hence "all" potential 2061:for general discussion, and 1853:- which is, additionally, a 7: 5514:Accretion/dilution analysis 3741:MIT Sloan Management Review 3572:. Routledge. pp. 23–. 3488:. OUP Oxford. p. 149. 3059: 2696:Managing the corporation's 2566:to each variable (commonly 2365:§ Option pricing approaches 2196:) or the cash flows (using 2187:In many cases, for example 10: 5713: 5477:Leveraged recapitalization 4810:Advanced Corporate Finance 4790:Advanced Corporate Finance 4431:What is Corporate Finance? 4403:Louisiana State University 4338:Working Capital Management 4327:Working Capital Management 4162:, Prof. Aswath Damodaran; 3988:, Prof. Campbell R. Harvey 3984:, Prof. Aswath Damodaran; 3759:www.businessroundtable.org 2970:enterprise risk management 2946: 2908: 2702:working capital management 2689: 2683: 2680:Working capital management 2613: 2379: 2353:Contingent claim valuation 2176: 2103:in corporate finance; see 2001: 1914:Asset liability management 1894:working capital management 1714: 1667: 1661: 1602: 1533:" in Dutch) was the first 1503: 1499: 1041:Fractional-reserve banking 969:Enterprise risk management 79:Enterprise risk management 18:Working capital management 5656: 5648:Valuation using multiples 5633:Sum-of-the-parts analysis 5603:Modigliani–Miller theorem 5504: 5462:Dividend recapitalization 5442: 5290: 5277:Secondary market offering 5180: 5169: 5096: 5040:Resources in your library 4679:(4th ed.). Pearson. 4260:See David Shimko (2009). 4173:, Prof. Alfred Rappaport 4048:Wharton School Publishing 3784:Economia Aziendale Online 3685:. John Wiley & Sons. 3536:Roberts, Richard (2008). 3259:. (Academic Press, 2006, 3192:List of accounting topics 2954:Financial risk management 2943:Financial risk management 2660:rather than in cash; see 2137:residual income valuation 2109:discounted payback period 1576:, in preference to other 1553:during the 17th century. 1469:are also associated with 944:Diversification (finance) 5666:List of investment banks 5581:Free cash flow to equity 5407:Super-majority amendment 5332:Management due diligence 5272:Seasoned equity offering 4557:; Peter DeMarzo (2013). 4316:, Prof. Aswath Damodaran 4195:, Prof. Aswath Damodaran 4156:Identifying real options 4111:, Summer 2006, Article 2 4013:Prof. Aswath Damodaran: 3956:European Economic Review 3918:Texas A&M University 3831:, Prof. Aswath Damodaran 3455:Cassis, Youssef (2006). 3283:. (DK Publishing, 2014, 3245:Stern School of Business 3212:List of valuation topics 2867:Discounts and allowances 2564:probability distribution 2441:"), where NPV is then a 2274:rational decision making 2166:list of valuation topics 1988:market timing hypothesis 1947:bankruptcy costs of debt 1912:, are also common. See: 1866:asset liability mismatch 1807:Capitalization structure 1634:mergers and acquisitions 894:Automated teller machine 99:Mergers and acquisitions 5377:Shareholder rights plan 5367:Post-merger integration 5337:Managerial entrenchment 5307:Contingent value rights 5247:Initial public offering 4836:(3rd ed.). Wiley. 4641:(3rd ed.). Wiley. 4401:, Prof. Don M. Chance, 4015:Estimating Hurdle Rates 3916:, Prof. John C. Groth, 3883:Intermediate Accounting 3827:, Prof. Don M. Chance; 3482:Michie, Ranald (2006). 3049:foreign exchange hedges 2845:Supply chain management 2550:. The output is then a 2376:Quantifying uncertainty 2329:financial option theory 2299:of some other asset or 2202:Penalized present value 1892:is a major function of 1790:Preference in dividends 1535:publicly listed company 1141:Stress test (financial) 419:Stress test (financial) 5519:Adjusted present value 5382:Special-purpose entity 5220:Direct public offering 5190:At-the-market offering 4264:. archived 2010-07-17. 3436:Cite journal requires 3202:List of finance topics 3006:performance monitoring 2841:Inventory optimization 2710:short-term liabilities 2521:Monte Carlo simulation 2458:demand for the product 2341:binomial options model 2237:real options valuation 2233:Decision Tree Analysis 2226:Real options valuation 2153:Stern Stewart & Co 1933:Related considerations 1816: 1692:convertible securities 278:Investment performance 125:Balance sheet analysis 5534:Conglomerate discount 4697:Principles of Finance 4538:David Shimko (2009). 4481:Principles of Finance 4449:John Hampton (2011). 3950:Mayer, Colin (1988). 3660:, Prof. Don M. Chance 3033:financial instruments 2909:Further information: 2849:operations management 2774:cash conversion cycle 2478:internally consistent 2380:Further information: 2198:certainty equivalents 2179:Real options analysis 2002:Further information: 1814: 1764:, but subordinate to 1715:Further information: 1668:Further information: 1585:investment management 1566:managerial capitalism 1490:accounting profession 1315:Too connected to fail 1076:Investment management 974:Environmental finance 833:Correspondent account 527:Community development 353:Too connected to fail 218:Cash conversion cycle 167:Management accounting 89:Investment management 5556:Economic value added 5551:Discounted cash flow 4336:, Studyfinance.com; 4283:, Prof. Sam Savage, 4274:The Flaw of Averages 3714:. Harper & Row. 3596:Financial Management 3300:Huston, Jeffrey L.: 3122:Financial management 3112:Financial accounting 3097:Corporate governance 3037:standard derivatives 2974:strategic objectives 2881:Short term financing 2836:Inventory management 2734:Economic value added 2498:First Chicago Method 2437:" (or even a "value- 2416:sensitivity analysis 2382:Sensitivity analysis 2303:. (For example, the 2278:probability weighted 2256:management decisions 2220:are considered. See 2022:discounted cash flow 2012:fundamental analysis 1954:Pecking Order Theory 1943:tax benefits of debt 1556:By the early 1800s, 1537:ever to pay regular 1494:financial accounting 1486:Financial management 1213:Exchange traded fund 1091:Mathematical finance 1051:Fundamental analysis 1046:Full-reserve banking 652:Bank holding company 562:Export credit agency 470:Part of a series on 429:Supply chain finance 363:Volatility (finance) 248:Exchange traded fund 238:Economic value added 208:Capital appreciation 162:Fundamental analysis 50:Financial management 5141:Senior secured debt 4285:Stanford University 4207:, Boundless Finance 4175:Columbia University 4109:Financial Decisions 4040:Risk Adjusted Value 3241:New York University 3025:under guidance from 3018:treasury management 2301:underlying variable 2173:Valuing flexibility 2051:Time value of money 2043:to determine their 1918:Treasury management 1651:Business Roundtable 1543:joint-stock company 1520:Italian city-states 1467:corporate financier 1456:current liabilities 1411:of the firm to the 1305:Time value of money 1131:Statistical finance 1121:Sustainable finance 1071:Investment advisory 713:Time deposit (Bond) 414:Statistical finance 384:Factoring (finance) 333:Sustainable finance 5676:Outline of finance 5588:Market value added 5571:Financial modeling 5529:Business valuation 5452:Debt restructuring 5230:Follow-on offering 5215:Corporate spin-off 5173:(terms/conditions) 5090:investment banking 4971:Jensen, Michael C. 4365:2014-02-01 at the 4347:, treasury.govt.nz 4343:2007-10-17 at the 4332:2004-11-07 at the 4279:2011-12-07 at the 4231:2013-07-02 at the 4179:Michael Mauboussin 4169:2019-10-20 at the 4038:Aswath Damodaran: 3924:, Ruben D. Cohen, 3912:2012-01-21 at the 3859:2012-06-23 at the 3823:2012-10-12 at the 3710:Managerial finance 3656:2012-10-12 at the 3255:Freedman, Roy S.: 3159:Security (finance) 3127:Financial planning 3117:Financial analysis 3087:Capital management 2929:investment banking 2905:Investment banking 2891:"; see generally, 2855:Debtors management 2588:standard deviation 2486:Financial modeling 2369:Business valuation 2125:capital efficiency 2121:equivalent annuity 2101:selection criteria 2016:In general, each " 2004:Business valuation 1992:behavioral finance 1981:earnings per share 1966:internal financing 1962:external financing 1926:Interest rate risk 1910:credit derivatives 1855:deductible expense 1817: 1721:Financial distress 1706:Sources of capital 1670:Security (finance) 1578:sources of capital 1506:History of banking 1478:managerial finance 1471:investment banking 1280:Security (finance) 1255:History of banking 1151:Structured product 1146:Structured finance 959:Economic expansion 472:financial services 424:Structured product 253:Financial analysis 172:Structured finance 94:Managerial finance 5697:Corporate finance 5684: 5683: 5608:Net present value 5593:Minority interest 5524:Associate company 5500: 5499: 5467:Financial sponsor 5387:Special situation 5357:Pre-emption right 5347:Minority discount 5257:Private placement 5156:Subordinated debt 5111:Exchangeable debt 5098:Capital structure 5086:Corporate finance 5031:Corporate Finance 5026:Library resources 4945:Corporate Finance 4858:(10th ed.). 4856:Corporate Finance 4792:. Prentice Hall. 4594:978-981-256-899-1 4559:Corporate Finance 4379:Security Analysis 4083:978-0-07-058031-2 3892:978-0-471-74955-4 3829:Capital Structure 3692:978-0-471-44642-2 3632:978-1-930789-02-9 3606:978-0-7021-7157-4 3579:978-1-134-67624-8 3522:978-0-19-506271-7 3468:978-0-511-33522-8 2978:appetite for risk 2781:return on capital 2730:return on capital 2716:of cash flow and 2706:short-term assets 2386:Scenario planning 2261:given that demand 2253:) and consequent 2210:scenario specific 2026:net present value 1878:cashflow matching 1664:Capital structure 1658:Capital structure 1626:capital structure 1622:capital budgeting 1428:Capital budgeting 1421:shareholder value 1405:capital structure 1401:Corporate finance 1398: 1397: 1193:Corporate finance 1188:Capital structure 1163: 1162: 934:Corporate finance 754: 753: 465: 464: 409:Position of trust 389:Financial analyst 313:Return on capital 213:Capital structure 109:Wealth management 34:Corporate finance 16:(Redirected from 5704: 5674: 5673: 5664: 5663: 5566:Fairness opinion 5561:Enterprise value 5544:Weighted average 5472:Leveraged buyout 5327:Drag-along right 5225:Equity carve-out 5182:Equity offerings 5178: 5177: 5174: 5146:Shareholder loan 5131:Second lien debt 5126:Preferred equity 5106:Convertible debt 5079: 5072: 5065: 5056: 5055: 5015: 4986: 4959: 4948:(4th ed.). 4935: 4913: 4898:(4th ed.). 4887: 4881: 4873: 4847: 4830:Pierre Vernimmen 4824: 4803: 4768: 4749: 4730:Aswath Damodaran 4725: 4719: 4711: 4690: 4671: 4652: 4630: 4598: 4576: 4561:(3rd ed.). 4542: 4536: 4530: 4516: 4510: 4509: 4503: 4495: 4471: 4465: 4447: 4438: 4427: 4421: 4411: 4405: 4388: 4382: 4376: 4370: 4357: 4348: 4323: 4317: 4310: 4304: 4294: 4288: 4271: 4265: 4258: 4249: 4242: 4236: 4218:mining companies 4214: 4208: 4202: 4196: 4190: 4181: 4152: 4146: 4139: 4130: 4118: 4112: 4101: 4095: 4094: 4092: 4090: 4075: 4064: 4058: 4036: 4030: 4023: 4017: 4011: 4005: 4003:investopedia.com 3997:See for example 3995: 3989: 3986:Equity Valuation 3978: 3972: 3971: 3962:(5): 1167–1183. 3947: 3941: 3934: 3928: 3904: 3898: 3896: 3878: 3872: 3869: 3863: 3850: 3844: 3838: 3832: 3814: 3808: 3807: 3775: 3769: 3768: 3766: 3765: 3751: 3745: 3744: 3732: 3726: 3725: 3713: 3703: 3697: 3696: 3676: 3670: 3667: 3661: 3643: 3637: 3636: 3617: 3611: 3610: 3590: 3584: 3583: 3563: 3554: 3553: 3533: 3527: 3526: 3506: 3500: 3499: 3479: 3473: 3472: 3452: 3446: 3445: 3439: 3434: 3432: 3424: 3412: 3406: 3405: 3385: 3379: 3374:), p. 431. "The 3360: 3354: 3337:Smith, B. Mark: 3335: 3329: 3319: 3313: 3298: 3292: 3274: 3268: 3253: 3247: 3237:Aswath Damodaran 3229: 3092:Corporate budget 2966:operational risk 2812:cash equivalents 2785:return on equity 2669:growth companies 2662:Corporate action 2654:tax on dividends 2466:commodity prices 2361:Timothy Luehrman 2345:simulation model 1964:while they have 1939:Trade-Off Theory 1390: 1383: 1376: 1360: 1350: 1349: 1340: 1339: 1270:Personal finance 1203:Equity (finance) 1066:Impact investing 1056:Growth investing 964:Enterprise value 871: 870: 682: 681: 637:Savings and loan 489: 467: 466: 457: 450: 443: 404:Investor profile 303:Over-the-counter 283:Investor profile 268:Growth investing 263:Financial system 243:Equity (finance) 130:Enterprise value 74:Corporate action 44: 30: 29: 21: 5712: 5711: 5707: 5706: 5705: 5703: 5702: 5701: 5687: 5686: 5685: 5680: 5652: 5628:Stock valuation 5623:Residual income 5539:Cost of capital 5496: 5492:Project finance 5482:High-yield debt 5438: 5417:Tag-along right 5342:Mandatory offer 5312:Control premium 5293: 5286: 5262:Public offering 5210:Bought out deal 5172: 5171: 5165: 5092: 5083: 5046: 5045: 5044: 5034: 5033: 5029: 5022: 4966: 4964:Further reading 4956: 4932: 4910: 4900:Wiley-Blackwell 4875: 4874: 4870: 4844: 4821: 4813:. MediaMatics. 4800: 4765: 4746: 4713: 4712: 4708: 4687: 4668: 4649: 4627: 4619:. Mcgraw-Hill. 4603:Richard Brealey 4595: 4581:Peter Bossaerts 4573: 4550: 4545: 4537: 4533: 4517: 4513: 4497: 4496: 4492: 4472: 4468: 4448: 4441: 4428: 4424: 4412: 4408: 4389: 4385: 4377: 4373: 4367:Wayback Machine 4358: 4351: 4345:Wayback Machine 4334:Wayback Machine 4324: 4320: 4314:Dividend Policy 4311: 4307: 4295: 4291: 4281:Wayback Machine 4272: 4268: 4259: 4252: 4243: 4239: 4233:Wayback Machine 4215: 4211: 4203: 4199: 4191: 4184: 4171:Wayback Machine 4153: 4149: 4140: 4133: 4119: 4115: 4102: 4098: 4088: 4086: 4084: 4065: 4061: 4037: 4033: 4024: 4020: 4012: 4008: 3996: 3992: 3979: 3975: 3948: 3944: 3935: 3931: 3914:Wayback Machine 3905: 3901: 3893: 3879: 3875: 3870: 3866: 3861:Wayback Machine 3851: 3847: 3839: 3835: 3825:Wayback Machine 3815: 3811: 3776: 3772: 3763: 3761: 3753: 3752: 3748: 3733: 3729: 3722: 3704: 3700: 3693: 3677: 3673: 3668: 3664: 3658:Wayback Machine 3644: 3640: 3633: 3619: 3618: 3614: 3607: 3591: 3587: 3580: 3564: 3557: 3550: 3534: 3530: 3523: 3507: 3503: 3496: 3480: 3476: 3469: 3453: 3449: 3437: 3435: 3426: 3425: 3413: 3409: 3402: 3386: 3382: 3361: 3357: 3351:Muscovy Company 3336: 3332: 3322:Ferguson, Niall 3320: 3316: 3299: 3295: 3275: 3271: 3254: 3250: 3230: 3226: 3222: 3183: 3174:Venture capital 3149:Investment bank 3132:Financial ratio 3062: 3053:Cash flow hedge 2951: 2945: 2913: 2907: 2902: 2875:risk of default 2828:Cash management 2798: 2789:cost of capital 2748:In addition to 2742: 2740:Working capital 2726:short-term debt 2718:cost of capital 2698:working capital 2694: 2688: 2686:Working capital 2682: 2618: 2616:Dividend policy 2612: 2610:Dividend policy 2421:ceteris paribus 2414:. In a typical 2400: 2378: 2246:possible events 2194:cost of capital 2185: 2177:Main articles: 2175: 2133:economic profit 2014: 2000: 1935: 1809: 1757: 1755:Preferred stock 1748: 1723: 1713: 1708: 1672: 1666: 1660: 1605: 1572:raised through 1545:to get a fixed 1516: 1502: 1444:Working capital 1394: 1329: 1328: 1310:Too big to fail 1295:Systematic risk 1208:Ethical banking 1198:Cost of capital 1173: 1165: 1164: 1111:Private banking 1081:Islamic banking 1061:Hedge (finance) 984:Ethical banking 954:Economic bubble 929:Climate finance 904:Bank regulation 868: 860: 859: 818:Instant payment 764: 756: 755: 679: 662: 661: 497: 461: 394:Financial asset 348:Too big to fail 338:Systematic risk 233:Economic bubble 223:Cost of capital 28: 23: 22: 15: 12: 11: 5: 5710: 5700: 5699: 5682: 5681: 5679: 5678: 5668: 5657: 5654: 5653: 5651: 5650: 5645: 5643:Terminal value 5640: 5635: 5630: 5625: 5620: 5615: 5610: 5605: 5600: 5595: 5590: 5585: 5584: 5583: 5576:Free cash flow 5573: 5568: 5563: 5558: 5553: 5548: 5547: 5546: 5536: 5531: 5526: 5521: 5516: 5510: 5508: 5502: 5501: 5498: 5497: 5495: 5494: 5489: 5487:Private equity 5484: 5479: 5474: 5469: 5464: 5459: 5454: 5448: 5446: 5440: 5439: 5437: 5436: 5431: 5430: 5429: 5419: 5414: 5409: 5404: 5399: 5394: 5389: 5384: 5379: 5374: 5369: 5364: 5359: 5354: 5349: 5344: 5339: 5334: 5329: 5324: 5319: 5314: 5309: 5304: 5298: 5296: 5288: 5287: 5285: 5284: 5279: 5274: 5269: 5264: 5259: 5254: 5249: 5244: 5243: 5242: 5232: 5227: 5222: 5217: 5212: 5207: 5202: 5197: 5192: 5186: 5184: 5175: 5167: 5166: 5164: 5163: 5158: 5153: 5148: 5143: 5138: 5133: 5128: 5123: 5118: 5116:Mezzanine debt 5113: 5108: 5102: 5100: 5094: 5093: 5082: 5081: 5074: 5067: 5059: 5053: 5052: 5043: 5042: 5036: 5035: 5024: 5023: 5021: 5020:External links 5018: 5017: 5016: 4999: 4965: 4962: 4961: 4960: 4954: 4936: 4930: 4914: 4908: 4894:, ed. (2003). 4888: 4869:978-0078034770 4868: 4848: 4843:978-1119975588 4842: 4825: 4820:978-8120336117 4819: 4804: 4799:978-0130915689 4798: 4785: 4783:978-1119610885 4769: 4763: 4750: 4745:978-0471076803 4744: 4726: 4706: 4691: 4686:978-0321127211 4685: 4672: 4667:978-0071120432 4666: 4653: 4648:978-1119743767 4647: 4631: 4626:978-0078034763 4625: 4611:Franklin Allen 4599: 4593: 4577: 4572:978-0132992473 4571: 4549: 4546: 4544: 4543: 4531: 4528:978-0976609704 4511: 4490: 4466: 4463:978-0814417447 4439: 4422: 4406: 4397:2012-07-31 at 4383: 4371: 4349: 4318: 4305: 4289: 4266: 4250: 4237: 4209: 4197: 4182: 4147: 4131: 4120:Dan Latimore: 4113: 4096: 4082: 4059: 4031: 4018: 4006: 3990: 3973: 3942: 3929: 3899: 3891: 3873: 3864: 3854:Quantum Online 3845: 3833: 3809: 3770: 3746: 3727: 3720: 3698: 3691: 3671: 3662: 3638: 3631: 3612: 3605: 3585: 3578: 3555: 3548: 3528: 3521: 3501: 3494: 3474: 3467: 3447: 3438:|journal= 3407: 3400: 3380: 3355: 3330: 3314: 3293: 3269: 3248: 3223: 3221: 3218: 3217: 3216: 3215: 3214: 3209: 3199: 3194: 3182: 3181: 3176: 3171: 3166: 3161: 3156: 3154:Private equity 3151: 3146: 3141: 3140: 3139: 3134: 3124: 3119: 3114: 3109: 3104: 3099: 3094: 3089: 3084: 3079: 3074: 3069: 3063: 3061: 3058: 3057: 3056: 3041:interest rate- 3021: 2994:economic value 2947:Main article: 2944: 2941: 2921:United Kingdom 2906: 2903: 2901: 2898: 2897: 2896: 2878: 2871:credit scoring 2852: 2832: 2803:current assets 2797: 2794: 2793: 2792: 2777: 2762:loan covenants 2741: 2738: 2684:Main article: 2681: 2678: 2614:Main article: 2611: 2608: 2525:David B. Hertz 2462:exchange rates 2454:scenario based 2447:Stress testing 2430:annual revenue 2377: 2374: 2373: 2372: 2285: 2208:or average or 2174: 2171: 1999: 1996: 1970:interest rates 1934: 1931: 1930: 1929: 1906:interest rate- 1898:securitization 1858: 1836:cost of equity 1808: 1805: 1804: 1803: 1800: 1797: 1794: 1791: 1756: 1753: 1747: 1746:Equity capital 1744: 1712: 1709: 1707: 1704: 1662:Main article: 1659: 1656: 1604: 1601: 1551:Dutch Republic 1501: 1498: 1452:current assets 1396: 1395: 1393: 1392: 1385: 1378: 1370: 1367: 1366: 1365: 1364: 1354: 1344: 1331: 1330: 1327: 1326: 1323: 1322: 1317: 1312: 1307: 1302: 1297: 1292: 1287: 1282: 1277: 1275:Public finance 1272: 1267: 1262: 1257: 1252: 1251: 1250: 1245: 1240: 1235: 1230: 1220: 1215: 1210: 1205: 1200: 1195: 1190: 1185: 1183:Bond (finance) 1180: 1174: 1172:Related topics 1171: 1170: 1167: 1166: 1161: 1160: 1159: 1158: 1153: 1148: 1143: 1138: 1133: 1128: 1123: 1118: 1116:Sustainability 1113: 1108: 1103: 1101:Money creation 1098: 1096:Mobile banking 1093: 1088: 1083: 1078: 1073: 1068: 1063: 1058: 1053: 1048: 1043: 1038: 1037: 1036: 1031: 1026: 1021: 1016: 1011: 1006: 1001: 996: 986: 981: 976: 971: 966: 961: 956: 951: 946: 941: 936: 931: 926: 921: 916: 911: 906: 901: 896: 891: 890: 889: 884: 869: 866: 865: 862: 861: 858: 857: 852: 847: 842: 837: 836: 835: 825: 820: 815: 810: 809: 808: 803: 793: 792: 791: 786: 776: 771: 765: 763:Funds transfer 762: 761: 758: 757: 752: 751: 750: 749: 744: 739: 734: 726: 725: 721: 720: 716: 715: 710: 705: 700: 695: 693:Christmas club 687: 686: 680: 668: 667: 664: 663: 658:Lists of banks 655: 654: 649: 644: 639: 634: 629: 624: 619: 614: 612:Postal savings 609: 604: 599: 594: 589: 587:Mutual savings 584: 579: 574: 569: 564: 559: 554: 549: 544: 539: 534: 529: 524: 519: 514: 509: 504: 498: 496:Types of banks 495: 494: 491: 490: 482: 481: 475: 474: 463: 462: 460: 459: 452: 445: 437: 434: 433: 432: 431: 426: 421: 416: 411: 406: 401: 396: 391: 386: 378: 377: 376:Related topics 373: 372: 371: 370: 365: 360: 355: 350: 345: 340: 335: 330: 325: 320: 315: 310: 305: 300: 295: 290: 285: 280: 275: 270: 265: 260: 258:Financial risk 255: 250: 245: 240: 235: 230: 225: 220: 215: 210: 205: 203:Bond (finance) 200: 195: 193:Angel investor 187: 186: 182: 181: 180: 179: 174: 169: 164: 159: 158: 157: 152: 147: 142: 132: 127: 119: 118: 114: 113: 112: 111: 106: 101: 96: 91: 86: 84:Financial plan 81: 76: 71: 66: 61: 53: 52: 46: 45: 37: 36: 26: 9: 6: 4: 3: 2: 5709: 5698: 5695: 5694: 5692: 5677: 5669: 5667: 5659: 5658: 5655: 5649: 5646: 5644: 5641: 5639: 5636: 5634: 5631: 5629: 5626: 5624: 5621: 5619: 5616: 5614: 5611: 5609: 5606: 5604: 5601: 5599: 5596: 5594: 5591: 5589: 5586: 5582: 5579: 5578: 5577: 5574: 5572: 5569: 5567: 5564: 5562: 5559: 5557: 5554: 5552: 5549: 5545: 5542: 5541: 5540: 5537: 5535: 5532: 5530: 5527: 5525: 5522: 5520: 5517: 5515: 5512: 5511: 5509: 5507: 5503: 5493: 5490: 5488: 5485: 5483: 5480: 5478: 5475: 5473: 5470: 5468: 5465: 5463: 5460: 5458: 5455: 5453: 5450: 5449: 5447: 5445: 5441: 5435: 5432: 5428: 5425: 5424: 5423: 5420: 5418: 5415: 5413: 5410: 5408: 5405: 5403: 5400: 5398: 5395: 5393: 5390: 5388: 5385: 5383: 5380: 5378: 5375: 5373: 5370: 5368: 5365: 5363: 5360: 5358: 5355: 5353: 5350: 5348: 5345: 5343: 5340: 5338: 5335: 5333: 5330: 5328: 5325: 5323: 5320: 5318: 5315: 5313: 5310: 5308: 5305: 5303: 5300: 5299: 5297: 5295: 5289: 5283: 5280: 5278: 5275: 5273: 5270: 5268: 5265: 5263: 5260: 5258: 5255: 5253: 5250: 5248: 5245: 5241: 5238: 5237: 5236: 5233: 5231: 5228: 5226: 5223: 5221: 5218: 5216: 5213: 5211: 5208: 5206: 5203: 5201: 5198: 5196: 5195:Book building 5193: 5191: 5188: 5187: 5185: 5183: 5179: 5176: 5168: 5162: 5159: 5157: 5154: 5152: 5149: 5147: 5144: 5142: 5139: 5137: 5134: 5132: 5129: 5127: 5124: 5122: 5119: 5117: 5114: 5112: 5109: 5107: 5104: 5103: 5101: 5099: 5095: 5091: 5087: 5080: 5075: 5073: 5068: 5066: 5061: 5060: 5057: 5051: 5048: 5047: 5041: 5038: 5037: 5032: 5027: 5013: 5009: 5005: 5000: 4998: 4994: 4990: 4984: 4980: 4976: 4972: 4968: 4967: 4957: 4955:9780984004928 4951: 4947: 4946: 4941: 4937: 4933: 4927: 4923: 4919: 4915: 4911: 4909:9781405107815 4905: 4901: 4897: 4893: 4892:Joel M. Stern 4889: 4885: 4879: 4871: 4865: 4861: 4857: 4853: 4849: 4845: 4839: 4835: 4831: 4826: 4822: 4816: 4812: 4811: 4805: 4801: 4795: 4791: 4786: 4784: 4780: 4776: 4775: 4770: 4766: 4764:9780691087948 4760: 4756: 4751: 4747: 4741: 4737: 4736: 4731: 4727: 4723: 4717: 4709: 4707:9781951693541 4703: 4699: 4698: 4692: 4688: 4682: 4678: 4673: 4669: 4663: 4659: 4654: 4650: 4644: 4640: 4636: 4635:CFA Institute 4632: 4628: 4622: 4618: 4617: 4612: 4608: 4607:Stewart Myers 4604: 4600: 4596: 4590: 4586: 4582: 4578: 4574: 4568: 4564: 4560: 4556: 4555:Jonathan Berk 4552: 4551: 4541: 4535: 4529: 4525: 4521: 4515: 4507: 4501: 4493: 4491:9781951693541 4487: 4483: 4482: 4475: 4470: 4464: 4460: 4456: 4452: 4446: 4444: 4436: 4432: 4426: 4420: 4419:1-4390-8050-X 4416: 4410: 4404: 4400: 4399:archive.today 4396: 4393: 4387: 4380: 4375: 4368: 4364: 4361: 4356: 4354: 4346: 4342: 4339: 4335: 4331: 4328: 4322: 4315: 4309: 4303: 4299: 4293: 4286: 4282: 4278: 4275: 4270: 4263: 4257: 4255: 4247: 4241: 4234: 4230: 4227: 4223: 4219: 4216:For example, 4213: 4206: 4201: 4194: 4189: 4187: 4180: 4176: 4172: 4168: 4165: 4161: 4157: 4151: 4144: 4138: 4136: 4129: 4125: 4124: 4117: 4110: 4106: 4100: 4085: 4079: 4074: 4073: 4063: 4057: 4056:0-13-199048-9 4053: 4049: 4045: 4041: 4035: 4028: 4022: 4016: 4010: 4004: 4000: 3994: 3987: 3983: 3977: 3969: 3965: 3961: 3957: 3953: 3946: 3939: 3933: 3927: 3923: 3919: 3915: 3911: 3908: 3903: 3894: 3888: 3884: 3877: 3868: 3862: 3858: 3855: 3849: 3843: 3837: 3830: 3826: 3822: 3819: 3813: 3805: 3801: 3797: 3793: 3789: 3785: 3781: 3774: 3760: 3756: 3750: 3742: 3738: 3731: 3723: 3721:9780060423360 3717: 3712: 3711: 3702: 3694: 3688: 3684: 3683: 3675: 3666: 3659: 3655: 3652: 3648: 3642: 3634: 3628: 3624: 3623: 3616: 3608: 3602: 3598: 3597: 3589: 3581: 3575: 3571: 3570: 3562: 3560: 3551: 3549:9781861978585 3545: 3541: 3540: 3532: 3524: 3518: 3514: 3513: 3505: 3497: 3491: 3487: 3486: 3478: 3470: 3464: 3460: 3459: 3451: 3443: 3430: 3422: 3418: 3411: 3403: 3401:9780521655361 3397: 3393: 3392: 3384: 3377: 3373: 3372:9781412929806 3369: 3365: 3359: 3352: 3348: 3347:9780226764047 3344: 3340: 3334: 3327: 3323: 3318: 3311: 3307: 3303: 3297: 3290: 3286: 3282: 3278: 3273: 3266: 3262: 3258: 3252: 3246: 3242: 3238: 3234: 3228: 3224: 3213: 3210: 3208: 3205: 3204: 3203: 3200: 3198: 3195: 3193: 3190: 3189: 3188: 3187: 3180: 3177: 3175: 3172: 3170: 3167: 3165: 3162: 3160: 3157: 3155: 3152: 3150: 3147: 3145: 3142: 3138: 3135: 3133: 3130: 3129: 3128: 3125: 3123: 3120: 3118: 3115: 3113: 3110: 3108: 3105: 3103: 3102:Corporate tax 3100: 3098: 3095: 3093: 3090: 3088: 3085: 3083: 3080: 3078: 3075: 3073: 3070: 3068: 3065: 3064: 3054: 3050: 3046: 3042: 3038: 3034: 3030: 3026: 3022: 3019: 3015: 3011: 3008:. (See also 3007: 3003: 2999: 2995: 2991: 2990: 2989: 2987: 2983: 2979: 2975: 2971: 2967: 2963: 2959: 2955: 2950: 2940: 2938: 2934: 2930: 2926: 2922: 2918: 2917:United States 2912: 2894: 2893:trade finance 2890: 2886: 2882: 2879: 2876: 2872: 2868: 2864: 2860: 2859:credit policy 2856: 2853: 2850: 2846: 2842: 2838: 2837: 2833: 2830: 2829: 2825: 2824: 2823: 2821: 2817: 2813: 2809: 2805: 2804: 2790: 2786: 2782: 2778: 2775: 2771: 2770: 2769: 2765: 2763: 2759: 2758:risk appetite 2755: 2751: 2746: 2737: 2735: 2731: 2727: 2723: 2719: 2713: 2711: 2707: 2703: 2699: 2693: 2687: 2677: 2674: 2670: 2665: 2663: 2659: 2655: 2651: 2650:share buyback 2647: 2643: 2638: 2636: 2631: 2626: 2624: 2617: 2607: 2605: 2604:credit crunch 2601: 2597: 2593: 2589: 2585: 2581: 2577: 2573: 2569: 2565: 2560: 2557: 2553: 2549: 2545: 2542: 2538: 2534: 2530: 2526: 2522: 2518: 2517:deterministic 2514: 2513:probabilistic 2510: 2505: 2503: 2499: 2495: 2491: 2487: 2483: 2479: 2475: 2471: 2467: 2463: 2459: 2455: 2450: 2448: 2444: 2440: 2436: 2431: 2427: 2423: 2422: 2417: 2413: 2409: 2405: 2399: 2395: 2391: 2387: 2383: 2370: 2366: 2362: 2358: 2357:Stewart Myers 2354: 2350: 2349:Black–Scholes 2346: 2343:or a bespoke 2342: 2338: 2334: 2330: 2326: 2322: 2318: 2317:mining rights 2314: 2310: 2306: 2302: 2298: 2297: 2292: 2291: 2286: 2283: 2279: 2275: 2271: 2270:decision tree 2266: 2262: 2258: 2257: 2252: 2248: 2247: 2242: 2241: 2240: 2238: 2234: 2229: 2227: 2223: 2219: 2215: 2211: 2207: 2203: 2199: 2195: 2190: 2184: 2183:decision tree 2180: 2170: 2168: 2167: 2162: 2161:Stewart Myers 2158: 2154: 2150: 2146: 2142: 2138: 2134: 2130: 2126: 2122: 2118: 2114: 2110: 2106: 2102: 2097: 2095: 2091: 2087: 2083: 2079: 2075: 2071: 2070:discount rate 2066: 2064: 2060: 2056: 2052: 2048: 2047: 2046:present value 2042: 2038: 2035: 2031: 2027: 2023: 2019: 2013: 2009: 2005: 1995: 1993: 1989: 1984: 1982: 1978: 1973: 1971: 1967: 1963: 1959: 1958:Stewart Myers 1955: 1950: 1948: 1944: 1940: 1927: 1923: 1919: 1915: 1911: 1907: 1903: 1899: 1895: 1891: 1887: 1883: 1879: 1875: 1871: 1867: 1863: 1859: 1856: 1852: 1851: 1846: 1842: 1838: 1837: 1832: 1827: 1822: 1821: 1820: 1813: 1801: 1798: 1795: 1792: 1789: 1788: 1787: 1784: 1780: 1778: 1774: 1769: 1767: 1763: 1752: 1743: 1741: 1737: 1732: 1728: 1722: 1718: 1703: 1701: 1697: 1696:Balance sheet 1693: 1689: 1685: 1681: 1677: 1671: 1665: 1655: 1652: 1648: 1647: 1642: 1637: 1635: 1629: 1627: 1623: 1618: 1614: 1611: 1600: 1598: 1594: 1590: 1589:United States 1586: 1581: 1579: 1575: 1571: 1570:share capital 1567: 1563: 1559: 1554: 1552: 1548: 1547:capital stock 1544: 1540: 1536: 1532: 1527: 1525: 1524:low countries 1521: 1515: 1511: 1507: 1497: 1495: 1491: 1487: 1483: 1479: 1474: 1472: 1468: 1463: 1461: 1457: 1453: 1449: 1445: 1441: 1437: 1433: 1429: 1424: 1422: 1418: 1414: 1410: 1406: 1402: 1391: 1386: 1384: 1379: 1377: 1372: 1371: 1369: 1368: 1363: 1359: 1355: 1353: 1345: 1343: 1335: 1334: 1333: 1332: 1325: 1324: 1321: 1320:Watered stock 1318: 1316: 1313: 1311: 1308: 1306: 1303: 1301: 1300:Systemic risk 1298: 1296: 1293: 1291: 1288: 1286: 1283: 1281: 1278: 1276: 1273: 1271: 1268: 1266: 1263: 1261: 1260:List of banks 1258: 1256: 1253: 1249: 1246: 1244: 1241: 1239: 1236: 1234: 1231: 1229: 1226: 1225: 1224: 1221: 1219: 1216: 1214: 1211: 1209: 1206: 1204: 1201: 1199: 1196: 1194: 1191: 1189: 1186: 1184: 1181: 1179: 1178:Asset pricing 1176: 1175: 1169: 1168: 1157: 1154: 1152: 1149: 1147: 1144: 1142: 1139: 1137: 1134: 1132: 1129: 1127: 1124: 1122: 1119: 1117: 1114: 1112: 1109: 1107: 1104: 1102: 1099: 1097: 1094: 1092: 1089: 1087: 1084: 1082: 1079: 1077: 1074: 1072: 1069: 1067: 1064: 1062: 1059: 1057: 1054: 1052: 1049: 1047: 1044: 1042: 1039: 1035: 1032: 1030: 1027: 1025: 1022: 1020: 1017: 1015: 1012: 1010: 1007: 1005: 1002: 1000: 997: 995: 992: 991: 990: 987: 985: 982: 980: 977: 975: 972: 970: 967: 965: 962: 960: 957: 955: 952: 950: 949:Eco-investing 947: 945: 942: 940: 939:Disinvestment 937: 935: 932: 930: 927: 925: 922: 920: 919:Capital asset 917: 915: 912: 910: 907: 905: 902: 900: 897: 895: 892: 888: 885: 883: 880: 879: 878: 875: 874: 873: 872: 864: 863: 856: 853: 851: 848: 846: 843: 841: 838: 834: 831: 830: 829: 826: 824: 821: 819: 816: 814: 811: 807: 804: 802: 799: 798: 797: 794: 790: 787: 785: 782: 781: 780: 777: 775: 772: 770: 767: 766: 760: 759: 748: 745: 743: 740: 738: 735: 733: 730: 729: 728: 727: 723: 722: 719: 714: 711: 709: 706: 704: 701: 699: 696: 694: 691: 690: 689: 688: 684: 683: 678: 675: 671: 666: 665: 660: 659: 653: 650: 648: 645: 643: 640: 638: 635: 633: 630: 628: 625: 623: 620: 618: 615: 613: 610: 608: 605: 603: 602:Participation 600: 598: 595: 593: 590: 588: 585: 583: 582:Middle market 580: 578: 575: 573: 570: 568: 565: 563: 560: 558: 555: 553: 550: 548: 545: 543: 540: 538: 535: 533: 530: 528: 525: 523: 520: 518: 515: 513: 512:Bulge bracket 510: 508: 505: 503: 500: 499: 493: 492: 488: 484: 483: 480: 477: 476: 473: 469: 468: 458: 453: 451: 446: 444: 439: 438: 436: 435: 430: 427: 425: 422: 420: 417: 415: 412: 410: 407: 405: 402: 400: 397: 395: 392: 390: 387: 385: 382: 381: 380: 379: 375: 374: 369: 368:Watered stock 366: 364: 361: 359: 356: 354: 351: 349: 346: 344: 343:Systemic risk 341: 339: 336: 334: 331: 329: 326: 324: 321: 319: 316: 314: 311: 309: 306: 304: 301: 299: 296: 294: 291: 289: 286: 284: 281: 279: 276: 274: 271: 269: 266: 264: 261: 259: 256: 254: 251: 249: 246: 244: 241: 239: 236: 234: 231: 229: 228:Eco-investing 226: 224: 221: 219: 216: 214: 211: 209: 206: 204: 201: 199: 196: 194: 191: 190: 189: 188: 184: 183: 178: 175: 173: 170: 168: 165: 163: 160: 156: 153: 151: 148: 146: 143: 141: 138: 137: 136: 133: 131: 128: 126: 123: 122: 121: 120: 116: 115: 110: 107: 105: 102: 100: 97: 95: 92: 90: 87: 85: 82: 80: 77: 75: 72: 70: 67: 65: 64:Business plan 62: 60: 57: 56: 55: 54: 51: 48: 47: 43: 39: 38: 35: 32: 31: 19: 5618:Real options 5434:Tender offer 5294:acquisitions 5282:Underwriting 5267:Rights issue 5170:Transactions 5085: 5030: 5003: 4988: 4974: 4944: 4921: 4895: 4855: 4852:Stephen Ross 4833: 4809: 4789: 4772: 4754: 4734: 4696: 4676: 4657: 4638: 4615: 4584: 4558: 4548:Bibliography 4534: 4514: 4480: 4476:. Ch. 20 in 4469: 4450: 4425: 4409: 4386: 4374: 4321: 4308: 4302:Investopedia 4292: 4269: 4240: 4212: 4200: 4150: 4122: 4116: 4108: 4099: 4087:. Retrieved 4071: 4062: 4043: 4034: 4021: 4009: 3993: 3976: 3959: 3955: 3945: 3932: 3902: 3882: 3876: 3871:Drinkard, T. 3867: 3848: 3842:Investopedia 3836: 3812: 3790:(1): 15–32. 3787: 3783: 3773: 3762:. Retrieved 3758: 3749: 3740: 3730: 3709: 3701: 3681: 3674: 3665: 3641: 3621: 3615: 3595: 3588: 3568: 3538: 3531: 3511: 3504: 3484: 3477: 3457: 3450: 3429:cite journal 3410: 3390: 3383: 3363: 3358: 3338: 3333: 3325: 3317: 3301: 3296: 3280: 3272: 3256: 3251: 3227: 3185: 3184: 3164:Stock market 3144:Growth stock 2952: 2925:Commonwealth 2914: 2880: 2862: 2854: 2834: 2826: 2802: 2799: 2766: 2750:time horizon 2747: 2743: 2714: 2701: 2695: 2666: 2641: 2639: 2635:growth stock 2627: 2619: 2561: 2540: 2537:Crystal Ball 2536: 2532: 2506: 2500:. 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See also 2408:sensitivity 2404:uncertainty 2333:call option 2206:most likely 2034:incremental 1922:Credit risk 1874:liabilities 1777:liquidation 1740:liquidation 1646:stakeholder 1641:shareholder 1492:. However, 1460:inventories 1450:balance of 1265:Market risk 1156:Toxic asset 1126:Speculation 1014:engineering 552:Development 532:Cooperative 358:Toxic asset 328:Super angel 323:Speculation 288:Market risk 155:engineering 5638:Tax shield 5598:Mismarking 5402:Stock swap 5352:Pitch book 5322:Divestment 5200:Bookrunner 5121:Pari passu 4997:0070591091 4931:0691125562 4042:; Ch 5 in 3764:2023-04-17 3495:0191608599 3310:1480825042 3289:1465415858 3265:0123704782 3220:References 3045:commodity- 2863:vice versa 2690:See also: 2596:spot price 2592:underlying 2568:triangular 2556:volatility 2509:stochastic 2482:discussion 2474:unit costs 2470:as well as 2402:Given the 2337:put option 2290:contingent 2235:(DTA) and 2149:Joel Stern 2135:, include 2082:volatility 2041:discounted 2037:cash flows 1975:Also, the 1890:short-term 1736:collateral 1717:Bankruptcy 1610:"projects" 1504:See also: 1238:regulation 887:management 882:allocation 779:Electronic 572:Industrial 567:Investment 547:Depository 522:Commercial 185:Investment 140:accounting 117:Accounting 5613:Pure play 5506:Valuation 5372:Sell side 5235:Greenshoe 4940:Ivo Welch 4878:cite book 4738:. Wiley. 4716:cite book 4500:cite book 3982:Valuation 3926:Citigroup 3804:2038-5498 3002:analytics 2889:factoring 2648:or via a 2646:dividends 2552:histogram 2305:viability 2265:outsource 2030:Joel Dean 1945:with the 1826:liability 1802:Nonvoting 1643:value or 1539:dividends 1448:operating 1442:capital. 1218:Financial 1009:economics 989:Financial 855:BRICS PAY 647:Wholesale 642:Universal 542:Custodian 135:Financial 5691:Category 5444:Leverage 5422:Takeover 5317:Demerger 5302:Buy side 4942:(2017). 4920:(2006). 4832:(2011). 4732:(1996). 4637:(2022). 4613:(2013). 4395:Archived 4363:Archived 4341:Archived 4330:Archived 4277:Archived 4229:Archived 4167:Archived 4050:, 2007. 3910:Archived 3857:Archived 3821:Archived 3654:Archived 3324:(2002). 3107:FP&A 3060:See also 3010:FP&A 2708:and its 2586:NPV and 2541:thousand 2490:unbiased 2468:, etc.) 2347:, while 2325:ore body 2214:modelled 1882:duration 1831:dilution 1773:dividend 1731:interest 1574:listings 1522:and the 1417:maximize 1342:Category 1034:services 1019:forecast 994:analysis 899:Bad debt 685:Accounts 670:Accounts 607:Payments 597:Offshore 577:Merchant 502:Advising 145:analysis 69:Clawback 5427:Reverse 5412:Synergy 5252:Pre-IPO 5240:Reverse 5161:Warrant 4563:Pearson 2865:); see 2820:debtors 2722:operate 2630:returns 2584:average 2435:surface 2433:"value- 2321:develop 2293:on the 2222:further 2218:payoffs 2189:R&D 2088:or the 2018:project 1902:hedging 1688:hybrid- 1603:Outline 1595:and of 1500:History 1432:funding 1352:Commons 1029:planner 999:analyst 747:Prepaid 708:Savings 698:Deposit 632:Savings 617:Private 592:Neobank 517:Central 479:Banking 150:analyst 5028:about 5012:220251 5010: 4995: 4983:244161 4981: 4952: 4928: 4906: 4866: 4840: 4817: 4796: 4781: 4761: 4742: 4704: 4683: 4664: 4645: 4623: 4591: 4569: 4526: 4488: 4461: 4417: 4177:& 4080: 4054: 3889: 3802: 3718: 3689: 3629: 3603: 3576: 3546: 3519: 3492: 3465: 3421:244161 3419: 3398: 3370: 3345: 3308: 3287: 3263: 3186:Lists: 3051:; see 2673:value- 2623:profit 2544:random 2396:, and 2367:under 2309:mining 2251:states 2224:under 2155:) and 2127:, and 2074:return 2057:. 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