FIN229 Fundamentals of Corporate Finance

Fundamentals of Corporate Finance notes

6 chapter notes, in syllabus order. Each starts with the key points.

Unit 1

Corporate Finance: Goals, Functions & StakeholdersUnit 1 of Fundamentals of Corporate Finance introduces the core principles of corporate finance, explaining its definition, objectives, functions, and the key stakeholders involved in financial decision-making, with practical applications in Nepali businesses.8 min read

Unit 2

Financial Statements and Analysis · note coming

Unit 3

Time Value of Money: Concepts, Calculations & ApplicationsUnit 3 of Fundamentals of Corporate Finance explores the core principle that money today is worth more than money in the future due to its earning potential, covering present value, future value, annuities, and practical applications in corporate finance decisions.10 min read

Unit 4

Risk and Return · note coming

Unit 5

Valuation of Bonds & Stocks: Methods, Models & Real CasesUnit 5 of Fundamentals of Corporate Finance covers how to value debt (bonds) and equity (stocks) using discounted cash flow models, dividend discount models, and market-based approaches, with worked examples in Nepali rupees for NEPSE-listed companies and global tech firms.9 min read

Unit 6

Cost of Capital: WACC, Sources, Trade-offs & Real-World UseUnit 6 of Fundamentals of Corporate Finance explores how companies determine their cost of capital—including debt, equity, and preferred stock costs—and how to compute the Weighted Average Cost of Capital (WACC). It covers the Modigliani-Miller (MM) propositions, capital structure trade-offs, and practical applications14 min read

Unit 7

Capital Budgeting Techniques · note coming

Unit 8

Capital Structure & Leverage: Optimal Mix, Trade-offs & Real-World ImpactUnit 8 of Fundamentals of Corporate Finance explores how firms structure debt vs. equity financing, the trade-offs between risk and return, and how leverage amplifies both. Covers MM propositions, capital structure theories, leverage effects, and practical applications in Nepali businesses like banks and retail chains.11 min read

Unit 9

Dividend Policy: Types, Theories, Factors & Decision-MakingUnit 9 of Fundamentals of Corporate Finance explores dividend policy—how firms decide how much profit to distribute as dividends vs. reinvest, key theories (residual, bird-in-hand, signaling), legal constraints, and real-world trade-offs between shareholder value and growth. Includes worked examples using Nepali compan14 min read

Unit 10

Working Capital Management · note coming