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📖 DAILY BOOK SUMMARIES 📖 🔗 DIRECT FREE E-BOOK DOWNLOAD LINK AVAILABLE — https://drive.google.com/file/d/1i50x1Zx4uVjKiArsV39GRDvhyrPzbGM3/view?usp=drivesdk 🔥 Corporate Finance 🔥 🚀 27 Lessons by 👉 ✨ Jonathan Berk and Peter DeMarzo ✨ 1. Fundamentals of Corporate Finance: • Emphasizes foundational concepts, such as time value of money, cost-benefit analysis, and the role of finance in decision-making. 2. Valuation Principles: • Explains valuation techniques, particularly Discounted Cash Flow (DCF), to assess the worth of assets, investments, and firms. 3. Risk and Return: • Introduces the relationship between risk and return, including CAPM (Capital Asset Pricing Model), beta, and the risk-free rate. 4. Investment Decision Rules: • Covers methods for evaluating projects and investments, including Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. 5. Capital Budgeting: • Provides strategies for selecting profitable investments, assessing cash flows, and conducting scenario and sensitivity analysis. 6. Capital Structure Decisions: • Analyzes the optimal mix of debt and equity, the benefits of leverage, and the trade-off theory vs. pecking order theory. 7. Cost of Capital: • Discusses calculating the Weighted Average Cost of Capital (WACC) and understanding its impact on financing decisions and valuation. 8. Financial Statement Analysis: • Reviews interpreting financial statements for cash flow analysis, identifying trends, and forecasting financial performance. 9. Payout Policy: • Examines factors influencing dividend and share buyback decisions, considering tax implications and shareholder preferences. 10. Efficient Markets Hypothesis (EMH): • Explains market efficiency, exploring its implications for corporate finance and the impact on investment and financing choices. 11. Working Capital Management: • Focuses on managing short-term assets and liabilities, including inventory, accounts receivable, and accounts payable. 12. Mergers and Acquisitions (M&A): • Covers M&A valuation, strategic motives, financing deals, and the complexities of integration. 13. International Corporate Finance: • Discusses challenges in global finance, such as exchange rates, political risk, and managing international operations. 14. Derivatives and Risk Management: • Explores the use of derivatives, hedging strategies, and risk management techniques to mitigate financial risks. 15. Behavioral Finance: • Introduces how psychological factors and biases can impact financial decisions, providing a contrast to traditional finance theories. 16. Real Options in Investment Decisions: • Examines the concept of real options—the flexibility in decision-making for investments, such as delaying, expanding, or abandoning projects.