Concept Guide
Time value of money
Why ₹100 today is worth more than ₹100 next year: future value, present value, NPV, annuities, compounding and perpetuities, with the formulas.
8 min readRead more
Corporate finance
Time value, cost of capital, capital structure, and capital budgeting.
5 guides. Read in order, or jump to what you need.
Concept Guide
Cost of capital (debt, equity, WACC)
Estimating the cost of equity with CAPM, the after-tax cost of debt and WACC for an Indian company, with a worked example.
11 min readRead more
Concept Guide
Capital structure
How companies choose between debt and equity: Modigliani-Miller, trade-off and pecking order theories, leverage metrics and the Indian context.
9 min readRead more
Concept Guide
Working capital
Operating working capital and the cash conversion cycle: how to work out DIO, DSO and DPO, sector benchmarks, negative working capital and manipulation.
8 min readRead more
Concept Guide
Capital budgeting (NPV, IRR, payback)
How companies decide which long-term investments to make: NPV, IRR and payback, incremental cash flows, MIRR, real options and capital rationing.
9 min readRead more