Assignment Writing Help on Essentials of Corporate Finance

Chapter 7 equips the student with valuable information on equity markets and stock valuation. There are different approaches the authors have employed to achieve their objectives in this subject. This is evident from the thorough coverage of non-constant and constant growth models on stock valuation. Students can make easy comparison from the characteristic that emanate in zero, constant and non-constant growth patterns of the stocks. In addition, the authors provide necessary features that are exhibited in common and preferred stocks including cumulative voting, straight voting and proxy voting among other rights. The authors have also presented the use of market and stock valuation in real life situations including the New York Stock Exchange (NYSE).

The main lesson learned in Chapter 8 revolves around capital budgeting. The authors have presented a detailed approach to this area due to the sensitivity and value that capital budgeting hold on the stability, success and viability of every business. Students learn the importance of “green” businesses that are rapidly growing and becoming embraced by companies that want a competitive edge against their rivals. In addition, there are criteria towards effective capital budgeting including accounting rate of return, MIRR, NPV, IRR, Payback, and Discounted Payback. Authors have provided a clear and informative comparison between the advantages and disadvantages of every criterion making it easier for the students.

Chapter 9 majorly teaches students how to make effective decision on investments using the different analyses. The used analysis depends on a number of factors that a person needs to evaluate before making a decision on any investment such as risk involved, the time aspect  and the yields/percentage of returns. Some of the highlighted analyses that students can employ project cash flow and incremental cash flow. There is also the evaluation of NPV estimates, what-if analysis and contingency planning among others.

Works Cited

Ross, Stephen A., Randolph W. Westerfield, and Bradford D. Jordan. Essentials of Corporate Finance. 8th ed. New York, NY: McGraw-Hill Irwin, 2014. Print.