Book Value Corporate Finance Equity 
Musings on Markets
JANUARY 10, 2025
In corporate finance and investing, which are areas that I work in, I find myself doing double takes as I listen to politicians, market experts and economists making statements about company and market behavior that are fairy tales, and data is often my weapon for discerning the truth. Return on Equity 1. Beta & Risk 1.
Musings on Markets
JULY 18, 2025
In my classes and writing on corporate finance, I look at the motives for businesses retaining cash, as well as how much cash is too much cash. The Motives for holding Cash In my introductory finance classes, there was little discussion of cash holdings in companies, outside of the sessions on working capital.
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Musings on Markets
AUGUST 19, 2024
In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. In 2022, I decided that I had hit critical mass, in terms of corporate life cycle content, and that the material could be organized as a book.
Musings on Markets
JANUARY 5, 2024
In my corporate finance class, I describe all decisions that companies make as falling into one of three buckets – investing decisions, financing decision and dividend decisions. Return on Equity 1. Equity Risk Premiums 2. Costs of equity & capital 4. Financing Flows 5. Return on Equity 2.
Musings on Markets
JANUARY 31, 2024
In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.
Musings on Markets
FEBRUARY 27, 2022
After paying taxes on this income, the residual amount represents net income, the final measure of equity earnings, and the basis for computing earnings per share and other widely used measures of profitability used by equity investors.
Brian DeChesare
SEPTEMBER 13, 2023
Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”
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