Corporate Finance Workbook

MICHELLE R. CLAYMAN, CFA, is Founder, Managing Partner, and Chief Investment Officer of New Amsterdam Partners LLC, an institutional money management firm in New York City. She has been published in the Financial Analysts Journal and the Journal of Investing, and is a frequent commentator for CNBC, Bloomberg, and other financial media outlets.MARTIN S. FRIDSON, CFA, is the CEO of FridsonVision LLC in New York City and is known for his innovative work in credit analysis and investment strategy. He is the author of several highly acclaimed books on financial statement analysis, high-yield debt, and financial history and is the youngest person ever inducted into the Fixed Income Analysts Society Hall of Fame.GEORGE H. TROUGHTON, CFA, is Professor Emeritus of Finance at California State University, Chico. He is a recipient of the C. Stewart Sheppard Award for the advancement of education in the investment profession as well as the Donald L. Tuttle Award for CFA Grading Excellence.

• Part I Learning Outcomes, Summary Overview, and Problems 1Chapter 1 Corporate Governance 3Learning Outcomes 3Summary Overview 3Problems 5Chapter 2 Capital Budgeting 11Learning Outcomes 11Summary Overview 12Problems 15Chapter 3 Cost of Capital 29Learning Outcomes 29Summary Overview 29Problems 31Chapter 4 Measures of Leverage 39Learning Outcomes 39Summary Overview 39Problems 40Chapter 5 Capital Structure 45Learning Outcomes 45Summary Overview 45Problems 46Chapter 6 Dividends and Share Repurchases: Basics 51Learning Outcomes 51Summary Overview 51Problems 52Chapter 7 Dividends and Share Repurchases: Analysis 57Learning Outcomes 57Summary Overview 57Problems 59Chapter 8 Working Capital Management 63Learning Outcomes 63Summary Overview 63Problems 64Chapter 9 Financial Statement Analysis 67Learning Outcomes 67Summary Overview 67Problems 68Chapter 10 Mergers and Acquisitions 73Learning Outcomes 73Summary Overview 74Problems 75Part II Solutions 83Chapter 1 Corporate Governance 85Solutions 85Chapter 2 Capital Budgeting 87Solutions 87Chapter 3 Cost of Capital 99Solutions 99Chapter 4 Measures of Leverage 103Solutions 103Chapter 5 Capital Structure 107Solutions 107Chapter 6 Dividends and Share Repurchases: Basics 111Solutions 111Chapter 7 Dividends and Share Repurchases: Analysis 113Solutions 113Chapter 8 Working Capital Management 115Solutions 115Chapter 9 Financial Statement Analysis 119Solutions 119Chapter 10 Mergers and Acquisitions 125Solutions 125About the CFA Program 131