Corporate Finance

Notes and tools on corporate finance.
This class is taught by my favorite finance lecturer - Dr. Paulina Roszkowska.

Class 1 - Introduction to corporate finance

Class 2 - Cost of capital

Class 3 - Financial planning

Class 4 - Payout policy

Class 5 - Raising capital

Class 8 - Capital structure

Class 9 - Capital Budgeting

Class 10 - Valuations and MA

Structure and more practices for exam (Class 11): Exam focus edition

Big Picture Overview

Click on flows (A–F) to learn about each step, or hover over components to see details.

Interactive

Key Concepts to Understand

Cost of Capital

The return rate firms must pay to raise funds. Weighted average of debt and equity costs (WACC).

Payout Policy

Decision on how much cash to return to shareholders (dividends) vs. retain for growth.

Firm Valuation

Market value equals present value of expected future cash flows discounted at the cost of capital.

Capital Structure

The mix of debt and equity financing. Affects risk, return, and firm value through tax benefits and financial distress costs.

The Complete Cycle

1. Firms raise capital from investors (A) → 2. Invest in assets and projects (B) → 3. Generate cash flows from operations (C) → 4. Pay taxes to government (D) → 5. Return cash to investors (E) and/or → 6. Reinvest retained earnings back into the business (F) → Repeat!

Note: these notes are created with the help of AI, don't blame me if you still cannot pass the exam. Maybe should've turned up to class. :)