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

Jensenâ€™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