Corporate Finance12 [Corporate Finance] Foundation of Finance Topics (6): Capital Budgeting and Discounted Cash Flow Analysis Capital Budgeting is a crucial aspect of corporate finance and investment decision-making. This process helps companies evaluate and decide on potential major projects or investments. It involves the analysis of future cash inflows and outflows to determine whether a project is viable and worth pursuing. This process is crucial for a company's long-term strategic planning and investment decision.. 2024. 1. 16. [Corporate Finance] Foundation of Finance Topics (5): Capital market equilibrium and the CAPM According to Portfolio Theory, by diversifying, investors can eliminate unsystematic risk (also known as diversifiable risk or specific risk) related to individual stocks, but not systematic risk (market risk, or the general perils of investing). The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets/stocks. Capital Market Equilib.. 2024. 1. 16. [Corporate Finance] Foundation of Finance Topics (4): Portfolio Theory Portfolio Theory, also known as Modern Portfolio Theory (MPT), was developed by Harry Markowitz in the 1950s. It's a fundamental concept in financial economics that deals with the ways in which investors can construct portfolios to maximize expected return based on a given level of market risk. Risk-Return Trade-Off Fundamental Premise: Investors are risk-averse; they prefer a less risky portfol.. 2024. 1. 16. [Corporate Finance] Foundation of Finance Topics (3): Arbitrage & the Law of One Price 4. Arbitrage & the Law of One Price Arbitrage Arbitrage is a fundamental concept in economics and finance that involves taking advantage of a price difference between two or more markets. It's a strategy used by traders and investors to profit from market inefficiencies. (금융과 경제에서 "Arbitrage"는 한글로 "차익거래"라고 한다. 이 용어는 시장 간의 가격 차이를 이용해 이익을 얻는 거래 방식을 의미한다.) How It Works: Identifying Price Difference.. 2024. 1. 6. [Corporate Finance] Foundation of Finance Topics (2): Equilibrium One Period Yields 3. Equilibrium One Period Yields Overview This concept relates to the idea that, in a well-functioning market, the yield of a security for a single period will adjust to a point where demand and supply for the security are in balance (equilibrium). It’s crucial in understanding how interest rates and yields are set in financial markets. Note: The Connection between Interest Rate and Yield Intere.. 2024. 1. 5. [Corporate Finance] Foundation of Finance Topics (1): Market Structure, Present Value, Yields, Returns 1. Market Structure In finance, market structure refers to the organizational characteristics of a market, including: the number and size of participants (like firms and consumers) the level of competition product differentiation ease of entering and exiting the market Common market structures include: perfect competition monopolistic competition oligopoly monopoly 2. Present Value, Yields & Ret.. 2023. 12. 23. 이전 1 2 다음
