Investment Decisions
Identify the incremental cash flows of a project, discount them, and decide whether the capital commitment increases the value of the firm.
RicherFin Education16 courses
Corporate Finance
Investment decisions, financing, capital structure and value creation.
Discipline courses
16 coursesIRR and Investment Criteria
Interpret the internal rate of return and understand why NPV remains the decision criterion when projects differ in size, timing, or cash flow patterns.
Risk in Investment Projects
Link business plan uncertainty to investment decisions through sensitivities, scenarios, thresholds, and contingent decisions.
The Cost of Capital
Understand the required return on corporate assets and link the cost of equity, the cost of debt, and market-value weights.
Estimating the Cost of Capital
Construct a defensible cost of capital when beta, cost of debt, target structure, currency, or country risk are not directly observable.
Capital Structure
Understand how debt and equity allocate risk, tax benefits, distress costs, incentives, and financial flexibility.
Debt Capacity
Assess the debt a company can service over time based on its cash flows, liquidity, maturities, and covenants.
Equity Financing
Analyze a share issuance, shareholder rights, ownership dilution, and economic dilution without confluting issue price with value creation.
Payout Policy
Determine when to retain cash, pay dividends, repurchase shares, or reduce capital without confusing distribution with value creation.
Working Capital and Corporate Liquidity
Manage receivables, inventory, payables, and cash flow as an operational investment, without confusing working capital reduction with sustainable value creation.
Value Creation
Link invested capital return, cost of capital, growth, and reinvestment to distinguish accounting performance from economic value creation.
Real Options
Value the flexibility to defer, expand, reduce, or abandon an investment as uncertainty resolves over time.
Governance and Agency Problems
Analyze conflicts between managers, shareholders, creditors, and minority holders, then link governance mechanisms to financial decisions.
Mergers, Acquisitions and Value Creation
Evaluate an acquisition as an investment decision by separating standalone value, synergies, control premium, financing, and integration risk.
Corporate Restructuring
Compare divestiture, spin-off, refocusing, and debt restructuring based on going-concern value, claim priorities, and distress costs.
Financial Planning and Strategy
Translate strategy into forecasted statements, funding requirements, scenarios, and capital allocation rules while preserving financial consistency.