The Modigliani-Miller (M&M) theorem is a cornerstone of modern corporate finance theory, developed by economists Franco Modigliani and Merton Miller in the 1950s.1
Posts tagged as “Cost of Capital”
Discounted Cash Flow (DCF) Analysis is a fundamental valuation method used in finance to estimate the intrinsic value of an investment, project, company, or asset.
Innovation is the lifeblood of competitive organizations, driving growth, efficiency, and resilience. It is no longer confined to the Research and Development (R&D) department; instead, it is an essential mindset woven into the fabric of every major business function.
Wise investors know that a company's market price can be influenced by all sorts of things, from market sentiment to temporary news cycles. The real question is: Is the stock's price reflective of its actual worth?
The Capital Asset Pricing Model (CAPM), developed in the 1960s by William Sharpe, John Lintner, and Jan Mossin, provides a framework to evaluate the expected return of an investment relative to its risk.
Capacity planning is a crucial strategic and operational process in the production of products, and it determines an organization's ability to meet current and future customer demand.
Valuation is at the heart of many financial decisions. Whether you're buying or selling a company, assessing the worth of an investment, or determining whether a stock is under or overvalued, knowing how to properly value assets is crucial.
The Modified Internal Rate of Return (MIRR) is a capital budgeting tool that addresses some of the significant limitations of the traditional Internal Rate of Return (IRR) method.
The profitability index (PI), also known as the profit investment ratio (PIR) or value investment ratio (VIR), is a capital budgeting tool used to evaluate the attractiveness of a project or investment.
Capital budgeting is the process companies use to evaluate and decide on potential investments or projects that require large capital expenditures.
Corporate finance is a crucial branch of finance that focuses on how corporations manage their financial resources to achieve their strategic goals, primarily maximizing shareholder wealth.