Turn money into value,
one decision at a time.

Every decision in this course reduces to one idea: a dollar today is worth more than a dollar tomorrow. Learn to move cash flows through time, add them up with net present value, and judge projects with the NPV rule — plus its flawed rivals, IRR and payback. This is the machinery everything else runs on.

1. ⏳
   Level 1 · ▶ NEXT The Time Value of Money ★★★ ◆
2. 🧮
   Level 2 Net Present Value ★★★ ◆◆ 🧩 Builds on L01
3. 🔁
   Level 3 IRR & Payback ★★★ ◆◆ 🧩 Builds on L02
4. 🏦
   Level 4 Annuities & Perpetuities ★★★ ◆◆ 🧩 Builds on L01
5. 🏗️
   Level 5 Capital Budgeting: Project Cash Flows ★★★ ◆◆◆ 🧩 Builds on L03, L04
6. 🎓 👑
   Level 6 · EXAM Value & Time Exam ★★★ ◆◆◆ 🧩 Builds on L05

Now point the discounting machine at real securities. Price a bond from its coupons and find its yield; value a share as the present value of its dividends with the Gordon growth model; and see where growth, payout and free cash flow fit. A bond and a stock are just two cash-flow streams wearing different clothes.

1. 📜
   Level 7 Valuing Bonds ★★★ ◆◆ 🧩 Builds on L06
2. 📐
   Level 8 Yields & Interest-Rate Risk ★★★ ◆◆◆ 🧩 Builds on L07
3. 📈
   Level 9 Valuing Stocks: The Dividend Discount Model ★★★ ◆◆◆ 🧩 Builds on L07
4. 🌱
   Level 10 Growth, Payout & Free Cash Flow ★★★ ◆◆◆ 🧩 Builds on L09
5. 🎓 👑
   Level 11 · EXAM Valuing Cash Flows Exam ★★★ ◆◆◆ 🧩 Builds on L08, L10

Discount rates don't fall from the sky — they're the price of risk. Learn what history says about risk and return, why diversification is a free lunch, how beta measures the risk that survives it, and how the Capital Asset Pricing Model turns beta into a required return: the cost of equity.

1. 🎢
   Level 12 Risk, Return & the Historical Record ★★★ ◆◆ 🧩 Builds on L11
2. 🧺
   Level 13 Diversification & Portfolio Risk ★★★ ◆◆◆ 🧩 Builds on L12
3. 📊
   Level 14 Beta & the CAPM ★★★ ◆◆◆ 🧩 Builds on L13
4. 🎯
   Level 15 The Cost of Equity & the SML ★★★ ◆◆◆ 🧩 Builds on L14
5. 🎓 👑
   Level 16 · EXAM Risk & Return Exam ★★★ ◆◆◆◆ 🧩 Builds on L15

Where does the firm's money come from, and does the mix matter? Blend the cost of debt and equity into a weighted-average cost of capital, then confront the great debate: Modigliani–Miller says capital structure is irrelevant in a perfect market — so which imperfection (taxes, distress) makes leverage worth it?

1. 🧊
   Level 17 The Cost of Capital & WACC ★★★ ◆◆◆ 🧩 Builds on L16
2. ⚖️
   Level 18 Capital Structure & Leverage ★★★ ◆◆◆ 🧩 Builds on L17
3. 🧩
   Level 19 Modigliani–Miller Propositions ★★★ ◆◆◆◆ 🧩 Builds on L18
4. 🛡️
   Level 20 Taxes, Distress & the Trade-off ★★★ ◆◆◆◆ 🧩 Builds on L19
5. 🎓 👑
   Level 21 · EXAM Financing Exam ★★★ ◆◆◆◆ 🧩 Builds on L20

The last question: the firm has cash — now what? Compare dividends with share repurchases, weigh the payout-irrelevance argument against the frictions that break it, and manage the short-term cash the business runs on day to day. Then face the capstone that ties all five worlds together.

1. 💸
   Level 22 Payout Policy: Dividends vs Repurchases ★★★ ◆◆◆ 🧩 Builds on L21
2. 🔀
   Level 23 The Payout Irrelevance Debate ★★★ ◆◆◆◆ 🧩 Builds on L22
3. 🔄
   Level 24 Working Capital & the Cash Cycle ★★★ ◆◆◆ 🧩 Builds on L21
4. 🏆 👑
   Level 25 · EXAM The Corporate Finance Capstone ★★★ ◆◆◆◆ 🧩 Builds on L23, L24