Fundamentals of Corporate Finance and Valuation

From the study guide

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.

Read the full study guide →

Practice 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?

Take the quiz (10 questions) →

Flashcard 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.

See all 20 flashcards →

Frequently asked questions

What does the Fundamentals of Corporate Finance and Valuation study guide cover?

It covers the core concepts of Fundamentals of Corporate Finance and Valuation, organized by topic with the key definitions, explanations and takeaways, so it's easier to learn and remember.

Read the full study guide →

How many questions are in the Fundamentals of Corporate Finance and Valuation quiz?

The practice quiz has 10 multiple-choice questions, each with an explanation. Use it to check what you know and find your gaps.

Take the quiz (10 questions) →

How do I study Fundamentals of Corporate Finance and Valuation with flashcards?

There are 20 flashcards on Fundamentals of Corporate Finance and Valuation, with a question on the front and the answer on the back. Try to recall each answer before you flip, and let spaced repetition bring back the ones you miss.

See all 20 flashcards →

Related classes

Turn your own class notes into a study guide

Upload a PDF or paste your notes. Revizly writes a study guide, a practice quiz and flashcards in about a minute.