M&A Courses and Exercises – Edward Bodmer – Project and Corporate Finance

Innovations in Corporate Finance Theory

Some of the innovations in Corporate Finance Theory on this website include:

Solution to IRR problem of re-investment and ranking with Weighted Average IRR
Computing Cost of Capital with Market to Book Regression Rather than CAPM
Demonstration of Flaws in Value Driver Formula: V=Income x (1-g/ROI)/(COC-g)
Correct Evaluation of WACC using Tax Shield from Interest Expense
Use of Credit Spread to Derive Debt Beta and More Properly Derive Unlevered Beta
Evaluation of Terminal Value Adjustments for Capital Expenditures, Working Capital and Deferred Tax that Depend on Growth
Adjustments to Free Cash Flow and EV to Enterprise Value Bridge for Deferred Tax, Warranty Cost and Other Items
Development of Terminal Valuation Techniques for Financial Institutions that Use Market to Book Ratio and ROE from Financial Models
Evaluation of Political Risk Premiums from Computing Implied Probability of Default

You will also find a lot of innovations in corporate modelling. These include:

Use of Historic Switch to Make Incorporation of New Financial Statements
Evaluation of ROIC and Invested Capital Using Switches and SUMPRODUCT
Development of INTERPOLATE Function to Evaluate Assumptions
Automation of Scenario Analysis with Scenario Reporter
Effective Automation of Historic Data Graphs with Flexible Spinner Box
Resolution of Circular References Related to Interest Expense and Taxes
Deprecation Techniques that Account for Changing Growth and Implied Retirements
Development of Techniques to Automate Constant Capital Structure in Financial Models
Dynamic Goal Seek Functions for Evaluation of Cost of Capital Using P/E Ratios
User Defined Functions for Computing Stable Capital Expenditures to Depreciation and Other Items

Creation of techniques to download stock price data, financial statement data and economic data
Stock price database that allows you to evaluate IRR’s, volatility and beta for stocks, stock price indices, economic series and commodity prices.
Financial Database that allows you to extract and evaluate financial data, financial ratios, and cost of capital across companies.
Extraction of Data that Enables you to have Historic Basis for Creating Financial Models.
Interest Rate, Exchange Rate and Commodity Price Databases that Include Historic Evaluation of Term Structures, Volatility and Other Statistics.
Comprehensive Country by Country Database to Evaluate Growth and Risks Across the World.