Corporate Finance

Corporate finance refers to the financial management of companies and their operations. It encompasses a wide range of functions, including financial planning and analysis, investment management, treasury and cash management, and capital budgeting.

Valuing Bonds

How to Calculate the Yield of a Zero Coupon Bond Using Forward Rates?

Calculating the Yield of a Zero Coupon Bond using Forward Rates In a…

Forward Rate – All about Forward Rate, How to calculate Forward Rate?

Calculating the Forward Rate In this article, we’re going to talk about how…

How to Calculate the Yield of a Zero Coupon Bond?

Calculating the Yield of a Zero Coupon Bond In this article, we’re going…

Yield of a Coupon Bond calculation using Excel. How to calculate Yield of a Coupon Bond?

Calculating the Yield of a Coupon Bond using Excel In this article, we’re…

Valuing Stocks

How do you use multiples in valuation? Valuation using Multiples.

In this article, we’re going to talk about how to value a firm…

How to value a firm using Total Payout Model? Overviw, Explanations & Calculation

In this article, we’re gonna talk about the total payout model for valuing…

How to Calculate the Total Return on a Stock? Explanation & Overview

The expected total return is the complete return that investors receive throughout the…

How to use Dividend discount model? Overview & Explanation.

Dividend discount models are one of the easiest ways to value a company…

Capital Market & Pricing of Risk

How to Calculate The Market Risk Premium?

The market risk premium is the amount by which the market return exceeds…

How to calculate Beta with Regression Analysis?

Remember that beta is the expected percentage change in a securities return given…

How to Calculate Beta using Correlation and Volatility. Overview and Explanation

Table of Content 1. Calculation of Covariance 2. Calculation of Variance 3. Calculation…

How to Calculate Beta using Covariance and Variance. Explanation and Overview

In this article, I want to show you how to calculate the beta…

Difference Between Beta and Volatility.

Sometimes people get confused between beta and volatility because both are measures of…

How to Calculate the Beta of a Portfolio? Overview and Explanation

How to calculate the beta of an entire portfolio? Let’s say that you…

Optimal Portfolio Choice & CAPM

What is The Security Market Line

The security Market line is the line that we get when we plot…

The Capital Market Line. Overview and Explanation

Let’s say we have an investor who’s going to invest in a portfolio…

Assumptions of Capital Asset Pricing Model (CAPM)

There are several assumptions of the capital asset pricing model. So just a…

How to Calculate Cost of Equity using CAPM? Overview and Example

In our capital asset pricing model formula, we’ve got the risk-free rate (Rf), that’s…

How to Calculate the Capital Asset Pricing Model (CAPM)

The capital asset pricing model is often called CAPM for short. It is…

How to Calculate The Treynor Ratio. Overview and Explanation

The Treynor ratio is a percentage that measures the reward to risk of…

Multifactor Models of Risk

What is Multifactor Models?

The most widely known model for estimating the expected return of a security…

Fama French Carhart Model

We start by looking at the capital asset pricing model and we modeled…

What is Fama French Three Factor Model?

If we go back to the capital asset pricing model, you’ll see that…

How Alpha of a Stock Affects Decision of a Investor

Alpha is just the difference between a securities return and the return that’s…

Difference Between the Alpha and the Active Return

Here we’re going to discuss the difference between the alpha and the active…

What is Jensen’s alpha?

Jensen’s alpha is the portion of the excess return of a security or…

Valuing The Investment

How to Use the Profitability Index?

In a perfect world, the company would accept all the positive NPV projects…

Limitations of The Dividend Discount Model

As we discussed in the last article, the dividend discount model could be…

Discounted Cash Flow Model (DFC). Formula and Example

So previously we talked about the dividend discount model and that was how…

All about Weighted Average Cost of Capital (WACC)

We’re going to talk about what the weighted average cost of capital is and…

Mergers & Acquisition

Carryover Method, How to account, Example

What is Carryover Method? When it comes to accounting, businesses have different methods…

Bargain purchase in an acquisition

What is a bargain purchase in an acquisition? A bargain purchase in an…

The negotiation process of merger and acquisition

In the negotiation process for a typical merger, we’re going to go through…

Financing mergers and acquisitions with examples.

Mergers could be financed with securities cash or a combination thereof, and in…

Considerations in mergers and acquisitions.

If you’ve ever heard the term “Consideration” in the context of mergers and…

Types of merger with example.

Here we’re gonna discuss three types of mergers,  Horizontal Mergers Vertical Mergers Conglomerate Mergers Horizontal Mergers:…