Evaluate your understanding of corporate finance with practice for today’s professional
Corporate Finance: Economic Foundations and Financial Modeling Workbook, 3rd Edition offers the key component of effective learning - practice. Designed for both students and investment professionals, this companion workbook aligns with the latest Corporate Finance text chapter-by-chapter. To improve your comprehension of core concepts, this book includes brief chapter summaries before diving into challenging practice questions and their solutions, while also laying out learning objectives so you can understand the “why” of each exercise.
Corporate Finance: Economic Foundations and Financial Modeling Workbook, 3rd Edition will help you:
- Synthesize essential material from the main Corporate Finance text using real-world applications.
- Understand the key fundamentals of the corporate finance discipline.
- Work toward specific chapter objectives to internalize important information.
CFA Institute is the world’s premier association for investment professionals, and the governing body for the CFA® Program, CIPM® Program, CFA Institute ESG Investing Certificate, and Investment Foundations® Program. Those seeking a deeper understanding of corporate finance and its overall impact on organizational growth will value the level of expertise CFA Institute brings to the discussion as well as the extra practice delivered in the third edition Corporate Finance: Economic Foundations and Financial Modeling Workbook based on real scenarios investors face every day.
Table of Contents
Part I Learning Outcomes, Summary, and Practice Problems 1
Chapter 1 Corporate Structures and Ownership 3
Learning Outcomes 3
Summary 3
Practice Problems 4
Chapter 2 Introduction to Corporate Governance and Other ESG Considerations 7
Learning Outcomes 7
Summary 7
Practice Problems 9
Chapter 3 Working Capital & Liquidity 11
Learning Outcomes 11
Summary 11
Practice Problems 11
Chapter 4 Capital Investments 15
Learning Outcomes 15
Summary 15
Practice Problems 16
Chapter 5 Capital Structure 21
Learning Outcomes 21
Summary 21
Practice Problems 22
Chapter 6 Measures of Leverage 27
Learning Outcomes 27
Summary 27
Practice Problems 28
Chapter 7 Cost of Capital: Foundational Topics 33
Learning Outcomes 33
Summary 33
Practice Problems 35
Chapter 8 Cost of Capital: Advanced Topics 43
Learning Outcomes 43
Practice Problems 43
Chapter 9 Analysis of Dividends and Share Repurchases 45
Learning Outcomes 45
Summary 45
Practice Problems 47
Chapter 10 Business Models & Risks 53
Learning Outcomes 53
Summary 53
Practice Problems 54
Chapter 11 The Firm and Market Structures 57
Learning Outcomes 57
Summary 57
Practice Problems 58
Chapter 12 Introduction to Industry and Company Analysis 63
Learning Outcomes 63
Summary 63
Practice Problems 67
Chapter 13 Financial Statement Modeling 71
Learning Outcomes 71
Summary 71
Practice Problems 72
Chapter 14 Corporate Restructurings 79
Learning Outcomes 79
Summary 79
Practice Problems 80
Chapter 15 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis 85
Learning Outcomes 85
Summary 85
Practice Problems 86
Chapter 16 Intercorporate Investments 89
Learning Outcomes 89
Summary 89
Practice Problems 90
Part II Solutions 101
Chapter 1 Corporate Structures and Ownership 103
Solutions 103
Chapter 2 Introduction to Corporate Governance and Other ESG Considerations 105
Solutions 105
Chapter 3 Working Capital & Liquidity 107
Solutions 107
Chapter 4 Capital Investments 109
Solutions 109
Chapter 5 Capital Structure 113
Solutions 113
Chapter 6 Measures of Leverage 117
Solutions 117
Chapter 7 Cost of Capital: Foundational Topics 121
Solutions 121
Chapter 8 Cost of Capital: Advanced Topics 125
Solutions 125
Chapter 9 Analysis of Dividends and Share Repurchases 129
Solutions 129
Chapter 10 Business Models & Risks 133
Solutions 133
Chapter 11 The Firm and Market Structures 137
Solutions 137
Chapter 12 Introduction to Industry and Company Analysis 139
Solutions 139
Chapter 13 Financial Statement Modeling 143
Solutions 143
Chapter 14 Corporate Restructurings 149
Solutions 149
Chapter 15 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis 153
Solutions 153
Chapter 16 Intercorporate Investments 157
Solutions 157
About the CFA Program 163
