Corporate finance is one of the most important subjects in the financial domain. It is deep rooted in our daily...
Read moreThe previous article was an introduction about the two basic decisions that corporate finance helps a corporation in making. Prima-facie,...
Read moreCorporate finance is based on two fundamental rules. All tools and techniques of corporate finance are mere ways and means...
Read moreValue of Money Depends Upon Time In the previous article we learned about the concept of nominal and real values...
Read moreThe net present value (NPV) is the most important concept in corporate finance. It is on the basis of this...
Read moreTheoretically there are two types of interest rates, simple and compounding. However, in finance the word interest usually refers to...
Read moreThe Bank of Japan has recently decided that it will cut its rate below the zero percent mark. Bank of...
Read moreWarren Buffet once told that interest rates are like gravity. If there is no gravitational pull on asset values, then...
Read moreOpportunity cost of a capital is a term unique to economics and finance. It is unique in the sense that...
Read moreCash flows vary from project to project. In some cases cash flows will occur evenly over time. There might be...
Read morePerpetuity is a very important concept in corporate finance. The concept of perpetuity makes it possible to value stocks, real...
Read moreWe have seen that a perpetuity represents an infinite stream of future cash flows. However, we have also seen that...
Read moreAn annuity, just like a perpetuity, is a shortcut used while making present value calculations. Unlike the perpetuity, which is...
Read moreAnnuities can be divided into two types based on the exact time when the payments occur in a given period....
Read moreIn the articles on present value, we learnt that the value of a dollar today is not the same as...
Read moreOne of the Most Important Uses of Discounting The present value of a bond is the sum of all the...
Read moreWhile calculating present values of bonds, one may observe that some of the information required to compute the present value...
Read moreInterest rates are one of the most important factors while determining the bond value. All other factors like payments, number...
Read moreEver since the inception of corporation as a separate legal entity, the common stock has become one of the most...
Read moreIn the past article we have seen how Discounted Cash Flow (DCF) is the most appropriate method of stock valuation...
Read moreEstimating the value of equity stock of a company is not an easy proposition. This is because while estimating the...
Read moreTheoretical Concept The cost of equity concept is very important when it comes to valuing shares on the stock market....
Read moreWe have earlier discussed the fact that Net present Value (NPV) is considered to be the gold standard when it...
Read moreThe Internal Rate of Return (IRR) is another very important metric that can be used to determine whether or not...
Read moreIn the past article we discussed about the concept of internal rate of return. We discussed how it could be...
Read moreIn the previous few articles we have come across different metrics that can be used to choose amongst competing projects....
Read moreAs discussed in the previous article, capital rationing is a form of capital budgeting. In capital rationing we change the...
Read moreWhat are Capital Controls ? Capital controls are when the governments of nations restrict the inflow and outflow of capital...
Read morePrima facie, capital budgeting may seem like a very simple task. After all, it has just 3 steps. The first...
Read moreWe have seen in the previous article that estimating cash flows can be quite confusing and counterintuitive. This is not...
Read moreContinuing from the previous two articles, we will look at some more counterintuitive steps that need to be taken to...
Read moreForecasts Spread Over a Period of Time Inflation is an ever persistent condition in today’s economy. The purchasing power of...
Read moreDepreciation is an important concept in capital budgeting. This is because it is a non cash expense and ideally should...
Read moreIn the previous articles we have seen how we can convert a possible future stream of cash flows to its...
Read moreWe have already seen that there are a lot of differences that arise between what we have learned in accounting...
Read moreFrom the past few articles, it may seem like capital budgeting has a pre-determined procedure. All the possible scenarios that...
Read moreThere is a widely held view that creative destruction is the cause of all business cycles. This explanation is used...
Read moreIn the past module, we concentrated on calculating the returns part of the project. All our articles were focused on...
Read moreThe Debt Bomb and its Implications The world is in crisis and one of the reasons for that is the...
Read moreDomestic Funds Transfer It is common for individuals and entities to transfer funds to their friends, family, business partners, and...
Read moreFollow the Money Trail In recent months, there has been a spate of disclosures around the world about how banks...
Read moreThe Difference between Retail, Corporate, and Investment Banking Most of us when dealing with banks usually walk into the branch...
Read moreWhy Geography matters for Banking With the world economy being integrated and interconnected due to the process of globalization, the...
Read moreA central bank is an institution that is mandated by constitutional decree to function along certain principles and entrusted with...
Read moreMany corporations and individuals earn a significant portion of their income from rents that they derive from their immovable properties....
Read moreBusiness and personal lending is dominated by tangible assets. The simple reason behind this is that they make good collateral....
Read moreA couple of years ago India as a country, was facing a huge divide. The government of India had passed...
Read moreThe decision to take a company public is a huge one. When a company gets listed on an exchange, it...
Read moreProfitability was always the core reason behind the existence of a company. For many businesses it still is. There is...
Read moreSome of the well-paid engineers in companies like Amazon pay about 45% of their income in taxes. They do so...
Read moreIf mere numbers are considered, Panaya is a small blip on the radar of the global Information technology behemoth Infosys....
Read moreFlipkart is amongst the largest unicorns in the Indian startup ecosystem. Wal-Mart is a known international retailer with revenues upwards...
Read moreWe all know about initial public offerings. These events are held to issue new stock and sell them to the...
Read moreMergers and acquisitions are often used by conglomerates to create value. However, in some cases, demergers have also been effectively...
Read moreThe holding company-subsidiary company corporate structure is extremely popular all across the world. All large companies serve as holding companies....
Read moreThe United States of America takes pride in its judicial system. According to most American economists, the judicial system of...
Read moreThe Wal-Mart Flipkart deal has become historic in many aspects. Firstly, this is the biggest, most valued takeover of a...
Read moreThe American energy sector has really taken off in the past few years. The discovery of “fracking” or hydraulic fracturing...
Read moreThe Fed has decided to raise interest rates steeply. One rate hike has already been announced this year (2018). It...
Read moreThe automobile industry sales have been stagnant for the past couple of years. However, this is bad news. This is...
Read moreWall Street is very sensitive to communication. Every quarter, executives from top companies communicate their results to the street. Based...
Read moreElon Musk cracked an April 1st joke on his investors. He first claimed that Tesla had gone completely bankrupt. Later,...
Read moreToys R Us is an iconic American company. According to recent surveys, Toys R Us has a market share of...
Read moreSugary beverages manufactured by companies such as Coca-Cola and Pepsi are colloquially called “soda” in the United States. Americans consume...
Read moreXiaomi is considered to be one of the most valuable startup firms in the world now. This firm, which has...
Read moreAlmost everybody knows that Whatsapp messages are often used to spread false information. A lot of times this information is...
Read morePeople who invest their money in stocks can be split up into two categories. One category of people actively decide...
Read moreSears has been one of the largest retailers in the world for many years now. The company has been in...
Read moreJoseph Stiglitz is one of the most renowned economists of our time. He once criticized the current economic system after...
Read moreThe Infrastructure Leasing and Financial Services (IL&FS) corporation were one of the bellwethers of India’s infrastructure sector. Ever since the...
Read moreWhat the Resignation of Urjit Patel Means for the Corporate Regulator Tussle in India Recently, in India, the RBI or...
Read moreHow Countries Worldwide Handle Bankruptcies As part of the normal boom and bust cycles of Free Market Capitalism, businesses do...
Read moreAlibaba is a Chinese online retail company. This company started as an Amazon wannabe in the Chinese economy. However, today...
Read moreUber is already a well-known brand across the world. Technically, the company is still a startup. However, Uber has a...
Read moreThe 1MDB scandal is a scandal of epic proportions that was uncovered in Malaysia almost five years ago. This scandal...
Read moreThe Indian equity markets are at an all-time high. This can be largely attributed to the large inflow of savings...
Read moreAmazon has become the poster-child of the e-commerce growth story across the world. For many years, retail executives across the...
Read moreIn the previous article, we talked about Facebook’s plan of becoming a social media conglomerate by merging different apps like...
Read moreFacebook, Instagram, and Whatsapp are three major social media applications. These three applications have a combined user base of about...
Read moreIn the recent past, the economy of India has been hit by one corporate marauder after another. It is surprising...
Read moreThe fracking industry has had a huge impact on the financial situation of the world in the past decade or...
Read moreThe Indian government has been defensive about opening up its retail sector to global companies such as Wal-Mart and Amazon....
Read moreJaguar Land Rover (JLR) produces some of the most exquisite and high-end luxury vehicles in the world. The company is...
Read moreKraft foods and Heinz, two Fortune 500 giants, merged in 2016 to form one of the largest companies in the...
Read moreIn 2017, a top European Union court has ruled that since Uber’s drivers provide transport services to customers, it should...
Read moreDhirubhai Ambani was the perfect rags to riches story that India had ever seen. He had started out with nothing....
Read moreLegal costs have long been a deterrent for people wanting to file lawsuits. In a country like America, the legal...
Read moreThe plastic problem has become a major talking point across the entire world. Almost every country in the world is...
Read moreThe global payments processing market is dominated by only two major players viz. MasterCard and Visa. Many experts find this...
Read moreLyft is one of the most famous tech unicorns in the world. There was tremendous amount of buzz in the...
Read moreAutomobile companies in India have been facing tough competition amongst themselves. Firstly, increasing traffic congestion in the cities is making...
Read moreIn April 2019, the stock price of Amazon had taken a beating because of the news of the divorce of...
Read moreSpotify, which is one of the largest music streaming websites in the world, has filed an anti-trust lawsuit against Apple...
Read moreThe Indian stock market is abuzz with the news of a hostile takeover. Larsen and Toubro, which is one of...
Read moreMany tech-based companies are lined up for initial public offerings (IPOs) in 2019. Many companies such as Uber and Lyft...
Read moreDownturns are part of an economic cycle. Every few years or so, the economy stops growing at a rapid speed....
Read moreFacebook is one of the largest social media firms in the world. The Facebook family of apps, i.e. Facebook, WhatsApp,...
Read moreApple Inc. is the largest and the most profitable company in the entire world. However, of late, it has also...
Read moreThe geographical boundaries drawn by nation states are blurring in the 21st century. In many parts of the world, free...
Read moreThe Icelandic budget airline “Wow airline” became the latest airline to go bankrupt in Europe. Of late, Europe has seen...
Read moreThe name WeWork is now a known brand name for millennials around the world. This is a remarkable feat given...
Read moreThe average person believes that they are legally allowed to make any investment that a rich person can. However, this...
Read moreAmazon and FedEx have traditionally had a love-hate relationship. On the one hand, Amazon is one of the biggest customers...
Read moreThe era of big corporations started during the industrial revolution. The past couple of centuries have witnessed the rise of...
Read moreEconomies of scale provide a significant advantage in the retail industry. This is the reason why all retail companies try...
Read moreApple is one of the largest manufacturers of mobile phones in the world. The company is the largest in the...
Read moreThe nature of mergers and acquisition activity has drastically changed over the past few years. Earlier, most of the mergers...
Read moreCorporate America is flush with cash! Collectively, the Amazons’, Apples’ and other such publicly traded mega corporations account for close...
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