Corporate Finance Download free books at Download free eBooks at bookboon.com 2 Corporate Finance Download free eBooks at bookboon.com 3 Corporate Finance 1 st edition © 2008 bookboon.com ISBN 978-87-7681-273-7 Download free eBooks at bookboon.com Click on the ad to read more Corporate Finance 4 Contents Contents 1 Introduction 8 2 e objective of the rm 9 3 Present value and opportunity cost of capital 10 3.1 Compounded versus simple interest 10 3.2 Present value 10 3.3 Future value 11 3.4 Principle of value additivity 11 3.5 Net present value 12 3.6 Perpetuities and annuities 12 3.7 Nominal and real rates of interest 15 3.8 Valuing bonds using present value formulas 16 3.9 Valuing stocks using present value formulas 19 www.sylvania.com We do not reinvent the wheel we reinvent light. Fascinating lighting offers an infinite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges. An environment in which your expertise is in high demand. Enjoy the supportive working atmosphere within our global group and benefit from international career paths. Implement sustainable ideas in close cooperation with other specialists and contribute to influencing our future. Come and join us in reinventing light every day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Corporate Finance 5 Contents 4 e net present value investment rule 22 5 Risk, return and opportunity cost of capital 25 5.1 Risk and risk premia 25 5.2 e eect of diversication on risk 27 5.3 Measuring market risk 29 5.4 Portfolio risk and return 30 5.5 Portfolio theory 33 5.6 Capital assets pricing model (CAPM) 36 5.7 Alternative asset pricing models 38 6 Capital budgeting 40 6.1 Cost of capital with preferred stocks 40 6.2 Cost of capital for new projects 41 6.3 Alternative methods to adjust for risk 42 6.4 Capital budgeting in practise 42 6.5 Why projects have positive NPV 45 360° thinking . © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers . Corporate Finance Download free books at Download free eBooks at bookboon.com 2 Corporate Finance Download free eBooks at bookboon.com 3 Corporate Finance 1 st edition ©. bookboon.com ISBN 978-87-7681-273-7 Download free eBooks at bookboon.com Click on the ad to read more Corporate Finance 4 Contents Contents 1 Introduction 8 2 e objective of the rm 9 3 Present value and. every day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Corporate Finance 5 Contents 4 e net present value investment rule 22 5 Risk, return and opportunity