Corporate Finance

Author:
Ross, Westerfield, Jaffe and Jordan

Publisher:
McGraw-Hill Education

Edition:
12th

ISBN:
9781259918940

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Complete Chapter - 2 Video(s)

Introduction to Corporate Finance


This video provides an introduction to the subject and scope of corporate finance. It covers important themes laid out in Section 1.1, and Section 1.2.

INtroduction to Finance Agency


This video explains what is the goal of financial management (Section 1.4), the agency problem inherent in corporate firms (Section 1.5), and the regulatory framework in which corporations operate (Section 1.6).

corporation - 1 Video(s)

Finance Core Topic #1 Section #1 The Corporation


This video covers the chapter corporation. It starts with the basic description of what corporations are and compares it with other forms of businesses. The video describes the importance of corporation and what kind of liabilities are applicable on a corporation. The video also describes different types of financial statements and compares them based on merits and demerits of each.

Complete Chapter - 2 Video(s)

Financial Statements Balance Sheet and Income Statement


The video explains the basic financial statement: The Balance Sheet (Section 2.1) and The Income Statement (Section 2.2),.

Financial Statements Statement of Cash Flows


This video explains the The Accounting Statement of Cash Flows (Section 2.6) and the related idea of determining Cash Flow of The Firm (Section 2.3). It concludes with a discussion of Cash Flow Management (Section 2.7).

The Balance Sheet - 1 Video(s)

The Balance Sheet 2 0


This video describes the typical balance sheet.

The Income Statement - 1 Video(s)

The Income Statement 2 0


This video explains the income statement, including revenues and expenses.

Cash flow of the Firm - 1 Video(s)

Cash Flows 2 0


This video discusses the difference between financial and accounting cash flows. Demonstrates extraction of cash flows from financial statements.

1. Key Chapter Concepts - 1 Video(s)

3671-EAC (equivalent annual cost for machines )


In this video two alternative machines are considered for calculating equivalent annual cost for machines. Moreover, concept of NPV is also reviewed in this section. Lastly, calculating EAC and NPV are explained using example from the chapter on a calculator.

forecasting free cash flows - 1 Video(s)

Finance Core Topic #2 Section #4 Forecasting Free Cash Flows


This video describes forcasting free chas flows. The video starts with the basic description on what is cash flows. The video describes what is the aim of commuting cash flow statement. It also describes why cash flow is important for the companies. Furthermore, the video describes the formula of calculating cash flows. Moreover, it describes why businesses hold cash.

financial ratios - 1 Video(s)

Finance Core Topic #1 Section #3 Financial Ratios


This video describes different financial ratios. The video describes the importance of financial ratios. The video also describes different types of ratios and shows the calculation of each ratio. In the video with the help of tables, it shows how to commute ratio of solvency. Furthermore, the video describes the merits and demerits of ratios of asset management.

Complete Chapter - 4 Video(s)

Financial Ratios Liquidity and Leverage Copy


This video explains some of the ways in which you can conduct Financial Statement Analysis (Section 3.1). Specifically, it explains Common-Size Balance Sheets, Common-Seize Income Statements and some of the short-term/liquidity ratios and long-term debt ratios covered in Section 3.2

Financial Ratios Efficiency


This video explains Efficiency/Turnover ratios. It also explains important concepts of Operating Cycle and Cash Conversion Cycle.

Financial Ratios Profitability


This video sheds light on how to calculate different profitability ratios. It also explains the concept of DuPont identity and how it can be used to gain insight into what is driving a firm's ROE.

Financial Ratios Market Value Ratios


This video explains how to calculate and analyze different types of market value ratios.

Financial Statement Analysis - 1 Video(s)

Financial Statement and Ratio Analysis 2 0


This video covers common size financial statements and financial ratio analysis.

The DuPont Identity - 1 Video(s)

The DuPont Identity and Problems with Financial Statement Analysis 2 0


This video discusses the DuPont Identity and how to use it to measure firm performance. Also discussed are potential issues with using financial statement analysis, including common size financial statements and financial ratio analysis.

External Financing and Growth - 1 Video(s)

Long term financial planning 2 0


This video covers the financial planning process, which begins with the sales forecast and includes determination of capital sources for new asset investment.

sales growth rates - 1 Video(s)

Finance Core Topic #2 Section #3 Sales Growth Rates and EFN


This video describes sales growth rate and external financing needs. The video starts with the basic description on what is sales growth. It describes the types of sales growth calculations. The video describes why is it important to calculate sales growth and how can it contribute towards long term sustainability.

Guided Solutions to End-of-Chapter Problems - 10 Video(s)

FIN 301 Problem 4.3


Watching this video will help you attempt Question 3 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4_4


Watching this video will help you attempt Question 4 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4_5


Watching this video will help you attempt Question 5 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4.11


Watching this video will help you attempt Question 11 at the end of the chapter (under "Questions and Problems" section).

FIn 301 Problem 4_15


Watching this video will help you attempt Question 15 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4_21


Watching this video will help you attempt Question 21 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4_28


Watching this video will help you attempt Question 28 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4_30


Watching this video will help you attempt Question 30 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4_33


Watching this video will help you attempt Question 33 at the end of the chapter (under "Questions and Problems" section).

FIN 301 Problem 4_38


Watching this video will help you attempt Question 38 at the end of the chapter (under "Questions and Problems" section).

1. Introduction - 1 Video(s)

Introduction: What is Discounted Cash Flow Valuation?


This video serves as an introduction to the over-arching theme of the entire chapter. Specifically, it explains the core idea behind discounted cash flow valuation and why it is important in evaluating any kind of long-term investment.

2. Valuation: The Single Period Case - 3 Video(s)

Present Value and Future Value: The One Period Case


This video explains the key idea behind present value and future value calculation. It is a good introduction to Section 4.1 of the chapter, and shows clearly how the concepts of present value and future value are related to each other.

Present Value (PV) and Net Present Value (NPV): The One-Period Case


This video shows how one can use the concepts of Present Value (PV) and NET Present Value (NPV) to decide whether or not to pursue an investment. The setting is a simple one in which the investment requires an upfront investment and yields a SINGLE cash inflow one year after the investment is made. After watching this video, you will also get a good understanding of Example 4.2 in the chapter.

Present Value and Opportunity Cost: Additional Insight


This is an extremely important video. It explains how the discount rate we use to calculate present value must reflect the riskiness of the cash flows. All else equal, risky cash flows must be discounted at a higher discount rate and, therefore, must have a lower present value. After watching this video, you will also get a good understanding of Example 4.2 on "Uncertainty and Valuation" in the chapter.

3. The Multiperiod Case - 4 Video(s)

Future Value and Compounding (Future Value in a Multi-Period Setting)


This video explains how to calculate the future value of a single cash flow in a MULTI-PERIOD setting. In the process, it also explains the important concept of compound interest. A

Present Value and Discounting (Present Value in a Multi-period Setting)


This video explains the concept and calculation of present value in a MULTI-PERIOD setting.

Using the Relationship Between Present Value and Future Value to Find the Number of Time Periods

How to Calculate Future Value, Present Value and Net Present Value with Multiple Cash Flows

4. Compounding Periods - 2 Video(s)

Multiple Compounding Periods in a SINGLE Year and Effective Annual Rate


This video illustrates the distinction between annual percentage rate and effective annual rate.

Multiple Compounding Periods in MULTIPLE Years

5. Simplifications: Perpetuities - 4 Video(s)

Present Value of a Perpetuity (aka Ordinary Perpetuity)


This video explains the concept of "ordinary" perpetuities. The textbook just refers to these as perpetuities (without using the term "ordinary"). Nonetheless, it would do you good to think bear this terminology in mind, as later it help you better understanding the difference between "Ordinary Annuities" and "Annuities Due".

Present Value of a Perpetuity Due


This video explain what is meant by Perpetuity "Due" and how it differs from an "ordinary" perpetuity. This is a useful video to help you get deeper understanding about the PV of Perpetuity formula.

Present Value of a Growing Perpetuity (aka Growing Ordinary Perpetuity)


This video shows how to determine the present value of a GROWING perpetuity where cash flows are growing at a constant RATE of g% (forever). Please REALLY understand this formula, as it will help you later in understanding an extremely important concept in finance called "Terminal Value". NOTE: You cannot use the growing perpetuity formula for situations where cash flows are growing by a constant DOLLAR (forever). It has to be growth by a constant PERCENTAGE.

Present Value of a Delayed Perpetuity


This video explain an EXTREMELY IMPORTANT calculation that many students find confusing. The present value of "ordinary" perpetuity formula (PV = C/r) can only be used when the FIRST cash flow is occurring one time-period into the future. However, there can be instances where the perpetuity is "delayed", i.e. the first cash flow occurs MORE than one year into the future (You will see applications of this in more advance finance classes). In such cases, the PV = C/r "ordinary" perpetuity formula needs to be augmented. This video shows you how.

6. Simplifications: Annuities - 6 Video(s)

Future Value of an Annuity Due

Present Value of an Annuity (aka Ordinary Annuity)

Present Value of an Annuity DUE (**IMPORTANT**)

Present Value of the "Infrequent" Annuity

Present Value of a DELAYED Annuity (**IMPORTANT**)

Present Value of a Growing Annuity

7. Loan Amortization - 3 Video(s)

Loan Amortization Example: Mortgage With Monthly Payments

Loan Amortization and Balloon Payments Using MS Excel


Watching this video will not only help you attempt Problem 56 at the end of the chapter but also teach you (a) how to construct an amortization schedule in Excel, and (b) how to determine your outstanding loan balance at a specific point in time during the duration of the loan.

Loan Amortization Using Present Value of Annuity Formula

Valuation - 1 Video(s)

Time Value of Money


This video introduces the concept of the time value of money.

1. Key Chapter Concepts - 1 Video(s)

Annuity Present Value Discount Factor


This video is an explanation of finding annuity factors using the table and calculator respectively. It further discusses calculation of present values of a stream of cashflows. It begins with giving a formula calculating present value using compounding through an example from the chapter.

1. End of Chapter Exercises - 10 Video(s)

FIN 301 Problem 4_28


This video shows how to solve end of chapter exercises on Excel. This video specifically provides solution to exercise 4.28 and all the necessary calculations related to it. This question is related to solving present value with frequency, first payment year and last payment year are provided.

FIN 301 Problem 4_21


This video gives solutions to end of chapter exercises on Excel. This video specifically provides solution to exercise 4.21 and all the necessary calculations related to it. This question is related to calculation of future value of a cashflow compounded annually for different terms.

FIN 301 Problem 4.11


This video provides solutions to end of chapter exercises on Excel. This video specifically provides solution to exercise 4.11 and all the necessary calculations related to it. This question is related to calculation of present value of a real firm's cash flows in an investment project.

FIN 301 Problem 4_5


In this video, end of chapter exercises are solved on Excel. This video specifically provides solution to exercise 4.5 and all the necessary calculations related to it. This question is about solving for the unknown number of years when present values and future values are provided.

FIN 301 Problem 4_4


This video shows how to solve end of chapter exercises on Excel. This video specifically provides solution to exercise 4.4 and all the necessary calculations related to it. This question is related to solving interest rate when future values and present values are provided.

FIN 301 Problem 4.3


In this video, end of chapter exercises are solved on Excel. This video specifically provides solution to exercise 4.3 and all the necessary calculations related to it. This question is related to computing present values when future values are provided.

FIn 301 Problem 4_15


In this video, end of chapter exercises are solved on Excel. This video specifically provides solution to exercise 4.15 and all the necessary calculations related to it. This question is about solving for the effective annual interest rate when APRs and frequency are provided.

FIN 301 Problem 4_38


This video provides solutions to end of chapter exercises on Excel. This video specifically gives solution to exercise 4.38 alongwith the calculations related to it. This question is related to calculation of balloon payment while keeping a constant monthly payment for an investment.

FIN 301 Problem 4_33


In this video, end of chapter exercises are solved on Excel. This video specifically provides solution to exercise 4.33 and all the necessary calculations related to it. This question is related to computing present values along with cost of revising their decision.

FIN 301 Problem 4_30


In this video, end of chapter exercises are solved on Excel. This video specifically provides solution to exercise 4.3 and all the necessary calculations related to it. This question is related to computing present values when future values are provided.

annuities and perpetuities - 1 Video(s)

Finance Core Topic #3 Section #2 Annuities and Perpetuities


This video describes annuities and perpetuities. The video with the help of examples describes what is annuities. It shows how annuities is different from perpetuities and with the help of examples it describes the calculations of perpetuities. The video further describes the concept of franchise. Moreover, the videod describes what is present value of perpetuities and how to calculate growth perpetuities.

1. Introduction - 1 Video(s)

Introduction


This video serves as an introduction to the chapter. It gives an overall perspective on what the entire chapter is all about.

2. Why Use Net Present Value - 1 Video(s)

Net Present Value (NPV)


This video explains the core concept behind Net Present Value calculation. It also shows a simple example that illustrates how you can implement the NPV formula.

3. The Payback Period - 1 Video(s)

Payback Period: Calculation, Advantages and Disadvantages


This video explains what is meant by Payback Period and how it can be used to evaluate investments. It also sheds light on the various advantages and disadvantages of using the technique.

4. The Discounted Payback Period - 1 Video(s)

Discounted Payback Period Method

5. The Internal Rate of Return - 2 Video(s)

The Internal Rate of Return (IRR) - Part 1

The Internal Rate of Return (IRR) - Part 2

6. Problems with the IRR Approach - 5 Video(s)

Drawback of IRR Approach to Investment Evaluation: Investing Vs. Financing Decisions


In this video I explain how and why the IRR decision rule needs to be modified when one is considering financing projects, or investments in which cash inflow occurs first and outflows happen later (An example of such an investment would be in the construction industry, where a contractor may receive funds from the customer first and THEN make all the investments later).

Drawback of IRR Approach to Investment Evaluation: Multiple IRRs


In this video I explain the conditions under which a project can have multiple IRRs, and how, therefore, one cannot reliably use the IRR decision rule to make an investment decision.

Modified Internal Rate of Return (MIRR) And The Multiple IRR Problem


When a project has multiple IRRs, we can modify the original cash flows to calculate a single, "modified" internal rate of return (MIRR) for the project. In this video, I show three different ways in which you can calculate the MIRR to resolve the multiple IRR problem: (a) The Discounting Approach, (b) The Reinvestment Approach, and (c) The Combination Approach. I also show how you can calculate the MIRR in Excel using the =MIRR function in Excel.

Drawback of IRR When Investments are Mutually Exclusive: The Scale Problem


Would you rather make a 100% return on a $1 investment, or a 10% return on a $1 million investment? If you are like most people, you'd choose making 10% on a $1 million investment. And yet, if you had based your decision on IRR, you would have chosen the investment with the higher IRR, which is 100% (as opposed to 10%) on a $1 investment. That, essentially, is the scale problem - if you have to pick between two competing ("mutually exclusive") investments, picking the one with the higher IRR may not be the value-maximizing thing to do.

Drawback of IRR When Investments Are Mutually Exclusive: The Timing Problem


When choosing between competing, mutually exclusive investments, picking the project with the higher IRR may may not be the right thing to do. In this video, I illustrate this point by calculating and comparing the IRR and NPV of two competing project which differ with respect to the timing of their cash flows.

Complete Chapter - 3 Video(s)

NPV and Other Investment Rules Pt1


This video explains the concept of Net Present Value (NPV) and also sheds on some of alternative investment decision rules, such as the Payback Period. It also briefly touches upon the important concept of Internal Rate of Return (IRR) and how it is related to NPV and NPV Profile.

NPV and Other Investment Rules Pt2


This video sheds additional light on IRR, specifically its shortcomings with respect to mutually exclusive projects.

NPV and Other Investment Rules Pt3


This video wraps up the discussion on IRR, and then discusses the important concepts of MODIFIED IRR (MIRR), Incremental IRR (when dealing with mutually exclusive projects) and Profitability Index. Some useful examples from other sources have been used to drive home important points.

Why Use Net Present Value - 1 Video(s)

Investment Decision Rules


The video details the investment decision rules commonly used in corporate finance, including NPV, Payback, IRR, and PI.

1. End of Chapter Exercises - 5 Video(s)

FIN 301 Problem 5.5


This video shows how to solve end of chapter exercises on Excel. This video specifically provides solution to exercise 5.5 and all the necessary calculations related to it. This question is related to evaluating all projects by applying the IRR rule and whether the company should accept the given interest rate.

FIN 301 Problem 5.8


This video provides solutions to end of chapter exercises on Excel. This video specifically gives solution to exercise 5.8 alongwith the calculations related to it. This question is related to calculation of profitability index of two independent investment opportunities and the choice of these projects.

FIN 301 Problem 5.10


In this video, end of chapter exercises are discussed in detail. For this purpose Excel is used to describe the calculations of exercise 5.10. It explains the calculation of IRR and NPV which further determines the choice of the investment project.

FIN 301 Problem 5.3


This video gives solutions to end of chapter exercises on Excel. This video specifically provides solution to exercise 5.3 and all the necessary calculations related to it. This question is related to calculation of discounted payback period for the given cashflows provided an initial cost.

FIN 301 Problem 5.1


In this video, end of chapter exercises are discussed in detail. For this purpose Excel is used to describe the calculations of exercise 5.10. It explains the calculation of IRR and NPV which further determines the choice of the investment project.

Complete Chapter - 2 Video(s)

Making Capital Investment Decisions Pt1


It is extremely important for you to understand how to determine a project's INCREMENTAL cash flows. This video explains what are the factors that one should consider when trying to determine a project's incremental cash flows. Important related ideas of operating cash flow, capital expenditures and depreciation are discussed. Where necessary, I have used material/examples from other sources to drive home some points.

Making Capital Investment Decisions Pt2


This video walk you through the process of calculating incremental financial (or free) cash flows of a project. It also discusses the relationship between inflation and capital budgeting, as well as how to decide between projects with unequal lives using the principle of equivalent annual cost (EAC).

Incremental Cash flows: The Key to Capital Budgeting - 2 Video(s)

Making Capital Investment Decisions


The video discusses which cash flows should be considered in capital budgeting analyses.

Baldwin Company Example Part II


This video is part 2 of 2 for the Baldwin Company Case .

6.2: The Baldwin Company: An Example - 2 Video(s)

Baldwin Company Example Part I


This video is part 1 of 2 of the Baldwin Company Case Study.

Baldwin Company Example Part II

1. Key Chapter Concepts - 1 Video(s)

3671 Set the Bidding Price in Capital Budgeting Questions


This video explains how to apply the rule of setting the bidding price. Moreover, use of Goal Seek function is also described in such a scenario. It further gives real life examples from the chapter regarding setting the bidding price and also provides solutions with it.

Complete Chapter - 2 Video(s)

Risk Analysis Real Options and Capital Budgeting Pt1


This video describes basics of risk analysis of capital investments. Topics covered include sensitivity analysis and scenario analysis.

Risk Analysis Real Options and Capital Budgeting Pt2


This video covers other risk analysis tools that financial managers can use, including accounting and financial break-even analysis. The video concludes with a discussion and importance of real options (such as option to expand, abandon, etc.) in capital budgeting projects.

Break-Even Analysis - 1 Video(s)

Break Even Analysis and Operating Leverage


This video explains break-even analysis and operating leverage.

1. Key Chapter Concepts - 1 Video(s)

3671-Sensitivity Analysis, Scenario Analysis in Capital Budgeting


This video discusses capital expenditure risk analysis and extends the investment decision analysis to assess various factors. It covers sensitivity analysis, break even analysis, scenario analysis etc. in detail. Moreover, a stepwise explanation of these analyses for several cases such as one variable or multiple variable change at a time are explained. It further describes Monte Carlo Simulation using graphical representation. Lastly, a discussion on real options and decision trees is also included.

Present and future value - 1 Video(s)

Finance Core Topic #3 Section #1 Present and Future Value


This video describes present and future value of payments. The video starts with valuation principle. It further describes the different types of value principles that define the importance of money. The video describes what is the different between future and present value of cash flows. In the video the formula and calculations required for present value and future value are illustrated with the help of examples. Moreover, the video describes the present value for multiple cash flows.

commute investment - 1 Video(s)

Finance Core Topic #5 Section #1 Compute Investment FCFFs


This video describes the chapter investments. The video starts with the basic description of investment after tax unlevered cash flows. The video with the help of examples describe what are charter unlevered cash flows.

project npv, irr and other measures - 1 Video(s)

Finance Core Topic #5 Section #2 Project NPV,IRR and other measures


This video describes NPV and IRR. It starts with the basic description of average accounting return. The video describes with the help of table which values are included in the calculation of net present value. Furthermore, the video describes the discount payback period. The video also describes the calculations for net present value. Moreover, the video describes the advantages of internal rate of return.

Bonds and Bond Valuation - 2 Video(s)

Bond Features 2 0


This video describes the features and different types of bonds.

Bonds and Bond Valuation 2 0


This video discusses bond vocabulary and the price behavior of discount and premium bonds as maturity approaches.

Present Value of Common Stocks - 1 Video(s)

Stock Features 2 0


Describes the features of common and preferred stock, including dividends and voting.

Estimates of Parameters in the Dividend Discount Model - 1 Video(s)

Stock Valuation 2 0


This video demonstrates the basic concepts behind the valuation of common and preferred stock.

Complete Chapter - 2 Video(s)

Lessons from History 1


This video describes the historical evidence on security returns. It illustrates the main idea that there is a trade-off between risk and expected return.

Lessons from History 2


This video digs deeper into the relationship between risk and expected return, and how standard deviation of returns can be used to develop confidence intervals around expected returns.

earnings at risk - 1 Video(s)

Finance Core Topic #9 Section #2 Earnings at Risk


This video describes the earnings at risk. The video starts with describing what happens when one invests in times of risk. The video shows the example of gold and how price of gold varies and risk is involved in gold purchase. In the video, the earnings at risk formula is used to calculate the risk of purchasing gold.

imm and risk measures - 1 Video(s)

Finance Core Topic #9 Section #1 IMM and Risk Measures


This video describes the IMM and risk measures. The video starts with the IMM risk management framework and describes how to use this framework to evaluate what are the different types of risks involved. The video describes this with the example of Hoffman Gold Mines company's example. The video describes each component that is used in the risk management framework.

Complete Chapter - 3 Video(s)

Return Risk and CAPM Pt1


This video shows how to calculated expected returns and standard deviation of returns. First it shows how you can do these calculation for individual securities (Section 11.1). Then the principles are extended to portfolios. In the process, the important role of covariance/correlation of returns is also discussed.

Return risk and CAPM Pt2


This video explains the concept of portfolio expected returns and variance/standard deviation in more detail. Specifically, it shows you how to form the "efficient set" of portfolios, first in a world consisting only of risky assets, and then in a world where investors can combine risky portfolios with a risk-free asset. In the process, it also explains the important distinction between systematic and non-systematic risk, and how diversification help reduce the latter.

Return risk and CAPM Pt3


This video explains how beta measures the systematic risk of a security, and how it can be used to determine the expected return by developing the capital asset pricing model (CAPM).

The Return and Risk for Portfolios - 1 Video(s)

Risk and Return of Portfolios 2 0


This video describes the methods for determining the risks and returns of portfolios, along with the benefits that diversification bring.

Relationship between Risk and Expected Return (CAPM) - 1 Video(s)

Risk and Return CAPM 2 0


This video discusses the ideas behind the Capital Asset Pricing Model.

npv and irr projects - 1 Video(s)

Finance Core Topic #6 Section #2 NPV and IRR of projects


This video describes the NPV and IRR of projects. The video starts with the description of Baldwin company and describes how it calculates its rate of return. It describes this with the help of tables and charts. The video also describes depreciation. Further, the video describes the investment analysis of Baldwin company. Moreover, it describes the example of Wall Mart and shows that what happens when it launched e stores.

npv senstivity analysis - 1 Video(s)

Finance Core Topic #6 Section #5 NPV Sensitivity Analysis


This videod describes the sensitivity analysis. It describes different situations in which this analysis is used. The video describes the example of an aircraft manufacturing company. The video describes what kind of analysis is required depending on the situation. Furthermore, the video describes the data table.

cost savings investment - 1 Video(s)

Finance Core Topic #6 Section #4 NPV of Cost Only or Cost Savings Investments


This video describes tax shields. This video starts with the difference between buy and lease. The video with the help of examples, describes what happens when someone leases something. Furthermore, the video describes what happens to taxes when someone buys or leases something.

tax shields - 1 Video(s)

Finance Core Topic #6 Section #3 Tax Shields and Lease vs Buy


This video describes tax shields. This video starts with the difference between buy and lease. The video with the help of examples, describes what happens when someone leases something. Furthermore, the video describes what happens to taxes when someone buys or leases something.

wacc and stock valuation - 1 Video(s)

Finance Core Topic #7 Section #4 WACC and Stock Valuation


This video describes WACC and stock valuation. the video describes with the help of tables how to calculate WACC. the video describes with examples to show what happens when one calculate cost of equity and cost of debt. The video also describes how to calculate weighted average.

cost of debt - 1 Video(s)

Finance Core Topic #7 Section #3 Cost of Debt


This video describes the cost of debt. The video describes different method used to calculate cost of debt. The video describes what happens when one uses different methods of cost of debt. The video also describes what happens to the value when different approach is used.

risk management strategies - 1 Video(s)

Finance Core Topic #9 Section #3 Risk Management Strategies


This video describes the risk management strategies. The video describes what are the different types of risk management strategies. the video starts with describing why should risks be managed. The video describes the process of risk management. Furthermore, the video describes different ways to mitigate the risk.

1. Key Chapter Concepts - 1 Video(s)

3671- Beta,WACC, firm valuation


This video shows how to interpret the beta of a stock. Examples of beta from actual firms are presented and interpreted. Moreover, different values of beta such as positive and negative betas with their respective cases are elaborated. It also talks about cyclicality of revenues and the difference between financial leverage and operating leverage in thorough detail.

1. Key Chapter Concepts - 3 Video(s)

3671-Chap 16(1) BreakEven EBIT


In this video, capital structure criteria and financial leverage are explained. Moreover, M+M propositions along with its mathematical proof, is briefly highlighted in this section. It further discusses the process of selecting a capital structure and elaborates the benefits and costs of using debt in case of market imperfections in financial markets.

3671- 16(2 )Homemade Leverage


This video discusses the Modigliani-Miller Theorem precisely. It also talks about break even EBIT and effect of homemade leverage and unleverage using examples from the chapter. Lastly, it compares two capital structures in elaborate detail and also describes the calculations involved.

3671-16(3) MM Theory


In this video, MM Propositions I and II are discussed in elaborate detail. It further talks about the no taxes and with taxes theory thoroughly for better understanding of the concept. Moreover, implications of these theories respectively are also described in this section.

1. Key Chapter Concepts - 1 Video(s)

FRL3671 Chap17-Capital Strucure: the Limit of Use of Debt


The video covers the topic of Debt in detail. It starts off with reiterating the costs of financial distress. It then moves on to explain the important characteristics of debt in detail along with agency costs with debt including selfish strategy 1,2 and 3 showcasing the reasoning behind selecting a debt instrument. Debt market processes are also explained using examples. Furthermore, important debt terminology and agency cost of equity i.e Free Cash Flow problem is explained in this section.

1. Key Chapter Concepts - 1 Video(s)

FRL3671-Chap 18 APV,FTE and WACC


In this video, effect of leverage on valuation is addressed. Moreover, adjusted present value approach (APV), Unlevered Cash Flow and Levered Cash Flow are also discussed using mathematical formulae. It also perpetual cash flows using the P.B Singer example in elaborate detail. Lastly, a summary for all three approaches is also provided for clarity.

1. Key Chapter Concepts - 1 Video(s)

3671- Lease vs. Buy (Net Advantage of Leasing NAL)


This video covers the concept of lease financing including its definition and reasons for consider leasing versus other forms of financing such as buying. It presents a distinction between financial versus operating leases. Apart from term and structure of a lease contract, the cashflows of leasing are also highlighted. It also gives examples of valuing financial leases from the chapter for further clarification.

Options - 1 Video(s)

Options and Corporate Finance 2 0


This video discusses different types of financial options, option pricing, and application of options to corporate finance decisions.

1. Key Chapter Concepts - 1 Video(s)

FRL3671-Chap22 Option and Corporate Finance


This video discusses options in corporate finance including its terminology, payoffs and profits. Moreover, it discusses put-call parity along with Black Scholes models including binomial models for further concretion of the concept. Lastly, applications in corporate finance such as in mergers is also described in this section.

Cash Cycle - 1 Video(s)

Tracing Cash, the Operating Cycle, and the Cash Cycle


This video explains how changes in different financial statement accounts effect the levels of cash at the firm. It also explores the operating cycle, the cash cycle, and discuss methods for reducing both.

Cash Budgeting - 1 Video(s)

Cash Budget and Short-term Borrowing


This video covers how to construct a cash budget to predict cash surpluses and deficits, and explains different methods for obtaining funding to overcome cash deficits.

Credit - 1 Video(s)

Credit and Credit Policy


This video explains what credit is and how it is administered via the credit policy. It also explain the rationale for providing credit and examine how changes in credit policy can impact profitability.

Inventory - 1 Video(s)

Inventory Management


This video covers the basics of inventory management systems, including economic order quantity, periodic order model, and continuous order model.

Mergers and Acquisitions - 1 Video(s)

Mergers and Acquisitions 2 0


This video describes the different types of corporate takeovers and the sources of gains from these takeovers. Explains the differences between stock and cash transactions.