Corporate Financial Management Notes

I will write down what I think are the key takeaways from this course here.

1.Modern financial theory (including DCF models) is built entirely upon two fundamental axioms: -Cash today is worth more than that same cash tomorrow (i.e., time) Opportunity cost of capital -Variability of cash flows must be taken into account because investors are (assumed to be) risk-averse

DCF is the fundamental equation of finance: In a perfect world (with perfect and complete markets), it is the one true valuation methodology.