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
Innovations in Corporate Modelling
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
Innovations in Corporate Data Analysis
- 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.