Dividend Policy: Why Firms Don’t Pay out all Their Earnings as Dividends
Calculating the Enterprise Value of a Firm
Net Present Value (NPV)
NPV with Taxes
NPV and Mutually Exclusive Investments
Selling a Stock Short
Free Cash Flow
Calculating Free Cash Flow for Walmart
IRR (Internal Rate of Return)
How to calculate IRR when there is a single cash inflow
NPV vs IRR
When IRR Fails: The Case of Delayed Investments
When IRR Fails: The Case of Multiple IRRs for the Same Project
When IRR Fails: The Case of a Nonexistent IRR
The Payback Method
Calculating the Payback Period
NPV vs. The Payback Method
Incremental IRR
Calculating the Yield of a Coupon Bond
Calculating the Yield of a Zero Coupon Bond
Calculating the Forward Rate
Calculating the Yield of a Zero Coupon Bond using Forward Rates
Dividend Discount Model (DDM)
Calculating the Total Return on a Stock
Total Payout Model (for valuing a firm)
Valuation using Multiples
Volatility as a Measure of Risk for a Single Stock
Volatility using Expected Returns
Volatility using Historical Returns
Arithmetic Return of a Stock
Geometric Return of a Stock
Arithmetic vs. Geometric Return
Diversification
Introduction to Beta
Systematic vs. Unsystematic Risk
Interpreting Beta
Calculating the Beta of a Portfolio
Beta vs. Volatility
Calculating Beta using Covariance & Variance
Calculating Beta using Correlation and Volatility
Estimating Beta with Regression Analysis
Market Risk Premium
Efficient vs. Inefficient Portfolios
Sharpe Ratio
Treynor Ratio
Capital Asset Pricing Model
Calculating Cost of Equity using CAPM
CAPM Assumptions
Capital Market Line
Security Market Line
Jensen’s Alpha
Alpha vs. Active Return
The Alpha of a Stock
Multifactor Models
Fama French Three-factor Model
Fama French Carhart Model
Weighted Average Cost of Capital (WACC)
Discounted Cash Flow Model
Limitations of the Dividend Discount Model
Profitability Index
The 3 Types of Mergers
Merger Consideration
Financing Mergers and Acquisitions
The Merger Negotiation Process
M&A Term Sheet Example
Material Adverse Event Clause
Earnouts
Fairness Opinion
Short-form Merger
Tender Offer
One-step vs. Two-step Merger
Toehold
Proxy Fight
The Williams Act
Ways to Prevent a Hostile Takeover
Dual-class Structure
Greenmail
White Knight & White Squire Defense
Pac-Man Defense
Motives for Mergers
Revenue Synergies
Cost Synergies
Financial Synergies
Tax Issues in Mergers & Acquisitions
Special Purpose Acquisition Company (SPAC)
Poison Pill
Staggered Board of Directors
Modified Duration
Macaulay Duration
