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How Debt Investors Are Influencing Corporate Governance

Reynolds Holding

Since the global financial crisis of 2007-2008, the corporate finance markets have been dramatically transformed. Most notable has been the rise of non-traditional providers of debt finance such as private credit funds, which now aggressively compete with traditional finance providers like commercial banks.

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The School Bell Rings: Time for Class!

Musings on Markets

The six classes that I prepped for in those two years ranged from banking to investments to corporate finance, and while I have never worked harder, much of what I teach today came out of those classes. I describe my corporate finance class as an applied, big-picture class.

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Boards’ Dilemma: The Compounding Problem Hidden in Share Buyback Execution Products

Reynolds Holding

As a capital allocation decision, share buybacks intersect all three of the main corporate finance activities of investing, financing, and dividends [1]. Buybacks for Financing A company can alter the debt-to-equity ratio of its capital structure by issuing debt and/or buying back shares.

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How to Value My Business to Sell

Sun Acquisitions

Business valuation, according to the Corporate Finance Institute , is the “process of determining the present value of a company or an asset.”. Your business’ capital structure makeup. How much is your business worth? It’s not how much you think or hope the business is worth. Future earnings. Company assets.

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Leveraged Buyouts

Andrew Stolz

Leveraged Buyout (“LBO”) is a quite common term in Corporate Finance field. It refers to acquiring a company (or its part) and financing it with debt. Capital Structure of an LBO. This is a Valuation Master Class student essay by Jana Kristofova from October 4, 2018. References. Chambers, D. Macabus (2018).

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Moonshots

Reynolds Holding

The most innovative part of the economy, the venture capital (VC) market, has evolved structures to address these agency problems. A startup’s capital structure solves the motivation problem. I call it the “venture carveout.”

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. The WACC can be calculated by weighting these components appropriately: WACC = (.4 What are the Limitations of WACC?