Long-term financial management

Free IMA CMA Part 2 (Strategic Financial Management) lesson in Corporate Finance. 10 min read, ~1,475 words.

WACC weights after-tax cost of debt, preferred, and equity at market weights. Use marginal, not historical. Bond price = PV of coupons + PV of par at YTM. Modified duration = % price change per 1% yield move. Constant-growth DDM:, valid only when. Call = right to buy at strike...

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