The terms “Term Structure of Interest Rates” and “Yield Curves” intimidates most MBA students. We believe the concepts of term structure of interest rates and yield curves intimidates MBA students is because almost all MBA students encounter it in their finance courses but do not go deep into understanding what the term structure or yield curve ares, how […] Read more
Finance Tutoring with CPA, CFA PhD & MBA Tutors
This page lists recent articles related to corporate finance on this website.
An Introduction to Bonds, Bond Valuation & Bond Pricing
Bonds form a significant portion of the financial market and are a key source of capital for the corporate world. Therefore every corporate finance course in the MBA program will introduce students to bonds at varying depth. We have provided a quick outline of what a student will need to know to understand bonds and the pricing or […] Read more
Letter to a CFA Level I Student
One of our CFA tutors typed up a long email to his student to wish him a happy new year! We thought it is worth sharing his advice as it may be beneficial to most CFA Level 1 students. My dear CFA Student, Happy New Year! You have less than 6 months left for your CFA […] Read more
Signaling in Corporate Finance: What is Tesla really saying?
Tesla just announced a $500 Million Common Stock Offering. In other words Tesla is issuing new shares in return for $500 million of cash. This money is to be used for expanding its business including Tesla Energy, the development of its next car – Model 3 and building a giga-factory. The announcement also said “Elon Musk, […] Read more
Tutoring for HBS Case Studies: American Chemical Corporation & Dixon Corporation: The Collinsville Plant
“American Chemical Corp.” and the “Dixon Corporation: The Collinsville Plant.” are two wonderful HBS corporate finance case studies that covers the same Mergers & Acquisitions (M&A) transaction situation in the Chemical Industry in 1979. American Chemical Corp which is a large chemical manufacturer wants divests a sodium chlorate manufacturing plant in Collinsville, Alabama due to […] Read more
Understanding Fixed Income Securities
Fixed income securities is a term used to describe securities that have a fixed stream of payments. This is usually referring to bonds where the borrower is promising to pay a fixed interest payment at specified intervals and the principal at the end of a specified period. The opposite category can be called Variable income securities […] Read more
Modigliani & Miller’s Propositions in Finance (MM or M&M Theory)
Modigliani & Miller’s revelations on the impact of capital structure on a company’s value and cost of equity was pathbreaking in the world of finance. Modigliani & Miller’s theory (often referred to as M&M or MM ) is encountered by every finance student in the introduction to finance or foundations of finance class. Modigliani & Miller […] Read more
Valuation: The Essence of Corporate Finance
The primary objectives of management and corporate finance teams should be to maximize or increase shareholder value. To increase value, you must be able to measure value. Thus ‘valuation’ becomes a critical function of the corporate finance team in any organization. There are many ways to value a company but the most common methods of […] Read more
Time Value of Money Formulas
As a follow up to our Time Value of Money infographic, we have created an infographic with the most commonly used Time Value of Money formulas. The following infographic provides you the formulas for the present value of a perpetuity, present value of a growing perpetuity, present value of an annuity, present value of a growing annuity, and growing […] Read more
Time Value of Money – A Quick Overview
The Time Value of Money (“TVM”) is a concept on which the rest of finance theory rests on. Therefore, it is critical that students understand this concept well. We expand on the Time Value of Money under the following headings: What does the “Time Value of Money” mean or capture? Why does the Value of Money Decline? […] Read more