Corporate Finance - Harvard Online Course PDF

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Corporate Finance – Harvard Online Course Fundamentally, the study of corporate finance covers the principles, analytical tools, and institutional knowledge a manager needs to make good investment and financing decisions. Introduction :

Ratio Analysis : Equity ¿ asset ratio=

Equity Total Assets

a) Growth : Compound average growth rate (CAGR) :

b) Profitability :

ROBE = Return On Beginning Equity compares net income during a given year to owner's equity at the beginning of the year. ROBE is a popular measure of financial performance among investors and managers and will be discussed in greater detail in future chapters. Another common variant of this ratio is ROE, which compares net income during the year to end-of-year owner's equity.

c) Efficiency :

All else equal, we prefer a lower number of days in inventory, which corresponds to a higher inventory turnover. Higher turnover indicates a need for less inventory and correspondingly lower capital requirements to finance the inventory.

d) Liquidity :...