Corporate Finance Outline
1. Introduction; Financial Statements and Accounting Principles
a. Exam = essays and short answer
b. Equity = Assets Liabilities
c. Assets = Liabilities + Equity
d. GAAP Generally Accepted Accounting Principles
e. FASB Financial
CORPORATE FINANCE OUTLINE
1. Accounting and Valuation
i. It is often important to know the value of a business as a going concern, and though it is not
normally a lawyers job to determine that value, lawyers often have to have a working
Measuring Firm Output
a. Historic Cost Principle
i. Assets are reported on accounting statements at cost acquired at some earlier point
1. Why? Mark value fluctuates
1. Assets held for sale (inventory): value at lower of histo
Brealey Principles 12e
All input values are shown in yellow. Only these values need changed to review algo versions.
Answers are displayed in red.
Assumptions and other problem notes are displayed at the very bottom.
WACC Debt 22.64%
WACC Prefe 5.42%
WACC Com 71.93%