**Author: **

Ross, Westerfield, Jaffe and Jordan

**Publisher: **

McGraw-Hill Education

**Edition: **

12th

**ISBN: **

9781259918940

Playlists By :

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.

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.

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.

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.

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

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.

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.

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.

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 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.

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.

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.

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_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.

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.

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).

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.

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 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.

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 5.3

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.