Frequently Asked Questions
1. | What is Corporate Finance? |
2. | What are cash flows? |
3. | What alternative formats of the balance sheet may companies use? |
4. | What is the working capital and how do companies manage it? |
5. | What are the alternative formats of an income statement? |
6. | How can we perform the financial analysis of a company? |
7. | What is the operating profit? |
8. | What is the scissors effect? |
9. | How does operating leverage work? |
10. | What is CAPEX? |
11. | How can the credit risk of a company be assessed? |
12. | How do we measure the profitability of a company? |
13. | What is the financial leverage effect and how does it work? |
14. | What are efficient markets? |
15. | What do we mean by discounting a sum? |
16. | How do companies measure value creation? |
17. | What is the NPV of a project? |
18. | What is the IRR of a project? |
19. | How do companies deal with uncertainty in capital budgeting? |
20. | How can real options be used in corporate finance? |
21. | What is risk in finance? |
22. | Is there any relation between risk and return? |
23. | How are risk and return measured? |
24. | What is diversification? |
25. | What are the efficient frontier and the capital market line? |
26. | What are the CAPM and the beta coefficients? |
27. | What is the cost of capital and how can it be estimated? |
28. | What are the most important debt products for companies' financing? |
29. | What do we mean by stock market analysis of a company? |
30. | What are financial options? |
31. | What are hybrid securities? |
32. | How are securities sold on capital markets? |
33. | What are the most important corporate valuation methodologies? |
34. | What is the DCF method? |
35. | What are valuation multiples? |
36. | What does the Modigliani and Miller theorem say? |
37. | What happens to the Modigliani and Miller theorem if we consider taxes and financial distress costs? |
38. | What are the other real-world factors that affect the capital structure decision? |
39. | How do companies design their debt funding? |
40. | Can options be used for the analysis of the capital structure? |
41. | How can companies distribute their excess cash? |
42. | What are share buybacks and how do they work? |
43. | What is the dilution of control in a capital increase? |
44. | How many different types of shareholders do we know? |
45. | Why do companies go public? |
46. | How can the control of a company be strengthened? |
47. | What are holding company and conglomerate discounts? |
48. | What are control premiums and minority discounts? |
49. | What is a cascade structure? |
50. | Why is corporate governance so important? |
51. | How can companies be taken over? |
52. | What are synergies? |
53. | What are demergers and split-offs? |
54. | What is a leveraged buyout? |
55. | What is bankruptcy? |
56. | What do we mean by cash flow management? |
57. | How many types of financial risks do companies face? |
58. | How can companies hedge financial risks? |