Corporate Finance Part 1

COURSE

CFA Level II

Corporate finance is spread over two study sessions. The subject of corporate finance will likely r...

**Capital Structure** - A firm’s [capital structure](https://financetrain.com/an-introduction-to-...

- Capital budgeting is the diligence process that a company performs to determine what investment ...

Two types of capital projects that a firm may consider are: - **Expansion Projects:** these are p...

- When analyzing capital projects, companies are incentivized to apply accelerated [depreciation m...

- [Inflation](https://financetrain.com/inflation-vs-deflation/ "Inflation vs Deflation?") has rami...

- It is possible for a firm to face a scenario where multiple capital projects show a positive [ne...

The EAA value represents the required size of an annual payment over an asset’s life to make the pre...

Least Common Multiple of Lives Approach process: ![](https://financetrain.com/wp-content/uploads/lc...

When only a single project is evaluated, then only its stand-alone risk is measured. The single pro...

- Stand-alone project analysis (sensitivity, scenario, and simulation analysis) looks at a project...

Real options represent a company’s rights to make chronological decisions in a capital project. Rea...

Company managers commonly make errors when evaluating capital projects. Some of these errors includ...

The discounting cash flow methods of [net present value and internal rate of return](https://finance...

Modigliani and Miller (MM) are great academics in economics and finance who broadly studied the impa...

Analysts can compare a company’s [capital structure](https://financetrain.com/an-introduction-to-cap...

While industry norms can say a lot about capital structure, other relevant variables such as taxatio...

Every year, a company three options as to what it can do with earnings in order to create value for ...

Factors that affect a company’s [dividend policy](https://financetrain.com/dividend-and-share-repurc...

- Commonly announcement of cash [dividend payment](https://financetrain.com/dividend-and-share-rep...