Long-term financial management

Free IMA CMA Part 2 (Strategic Financial Management) lesson in Corporate Finance. 11 min read, ~1,641 words.

WACC weights after-tax cost of debt, preferred, and equity at market weights. Use marginal cost, not historical. Bond price = PV of coupons + PV of par at YTM. Modified duration = % price change per 1% yield move; longer maturity and lower coupon raise it. DCF prices every security...