Fundamentals of Corporate Finance and Valuation

Revision sheet excerpt

📋 Course Outline

  1. Corporate Finance Fundamentals
  2. Balance Sheet Structure
  3. Financial Ratios
  4. Investment Analysis
  5. Cost of Capital
  6. Time Value of Money
  7. Capital Budgeting
  8. Debt and Equity Financing
  9. Valuation Models
  10. ESG and Corporate Governance

📖 1. Corporate Finance Fundamentals

🔑 Key Concepts & Definitions

Corporate finance (from Vernimmen et al., 2025): The field of finance that focuses on how companies raise, allocate, and manage financial resources to achieve their strategic objectives, primarily ensuring sufficient funding for expansion and obligations while maximizing shareholder value.

Role of corporate finance (from Vernimmen et al., 2025): It involves two key missions: (1) securing adequate funds for growth and meeting financial obligations, and (2) efficiently using investor resources to generate returns at least equal to investors’ required rates, thus creating value over the long term.

Coordination of financial and economic data (from Vernimmen et al., 2025): The process of integrating financial information (cash flows, capital structure, valuation) with economic data (investment projects, operational performance) to support sound financial management and strategic decision-making.

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Quiz preview

1. What is the primary focus of corporate finance?

2. According to the balance sheet structure described in the course, which of the following best defines current assets?

3. What is the primary role of financial ratios in corporate finance?

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Flashcards preview

Corporate finance — definition?

Managing resources to maximize shareholder value.

Role of corporate finance?

Secure funds and optimize resource use.

Balance sheet — structure?

Assets = claims; assets classified into current and fixed.

Assets — types?

Current and fixed assets.

Liabilities — division?

Current liabilities and long-term debt.

Equity — components?

Shareholders’ residual interest, including retained earnings.

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The quiz contains 10 multiple-choice questions with detailed corrections and explanations for each answer. Ideal for testing your knowledge and identifying gaps.

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