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? |