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【课程分享】FINA 5120 Corporate Finance
Description: Valuation of cash flow streams (PV of cash flow streams, annuities, and perpetuities); valuation of bonds; valuation of stocks using dividend discount model; capital budgeting decisions (NPV, IRR, payback); capital structure; limits to the use of debt (trade-off models); estimation of cost of debt and equity; WACC; terminal value.
- 1.
Identify and analyze the objective of the firm.
- 2.
Apply the concept of the time value of money and discounting cash flows to situations when the cash flows and the discount rate is known.
- 3.
Analyze the pros and cons of the common methods used in firms to evaluate and pick investment projects, and explain why the net present value (NPV) rule is the only one that is consistent with maximizing firm value.
- 4.
Define the principles for identifying the cash flows that need to be discounted to calculate the NPV of a project.
- 5.
Calculate the weighted average cost of capital and apply this to a real company.
- 6.
Apply the above tools to cases that involve deciding whether to take a project and to merger decisions.
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