Corporate Finance And Asset Pricing Practice Exam
Corporate Finance And Asset Pricing Practice Exam
About Corporate Finance And Asset Pricing Exam
The Corporate Finance and Asset Pricing Exam assesses a candidate’s understanding of financial decision-making in corporations, valuation methods, capital structure, risk-return trade-offs, and pricing of financial assets. It covers theoretical and practical knowledge required for evaluating investment opportunities, funding strategies, and the valuation of stocks, bonds, and derivatives.
Who should take the Exam?
This exam is ideal for:
- Finance students and MBA graduates
- Equity and debt analysts
- Investment banking and private equity professionals
- Financial planners and portfolio managers
- Freelancers offering financial analysis services
Skills Required
- Strong quantitative and analytical skills
- Understanding of financial statements and market instruments
- Familiarity with valuation techniques and capital budgeting
- Basic knowledge of financial modeling and forecasting
- Awareness of market risk and cost of capital
Knowledge Gained
- Concepts of time value of money and discounted cash flows
- Risk-return principles and portfolio theory
- Equity and bond valuation techniques
- Capital structure and dividend policy decisions
- Asset pricing models including CAPM and APT
Course Outline
The Corporate Finance And Asset Pricing Exam covers the following topics -
Domain 1 – Time Value of Money and Capital Budgeting
- Present and future value concepts
- Net present value (NPV), IRR, and payback period
- Project evaluation and investment decision rules
Domain 2 – Capital Structure and Dividend Policy
- Cost of capital and WACC
- Optimal capital structure theories
- Dividend relevance and payout strategies
Domain 3 – Equity and Bond Valuation
- Valuing common and preferred stock
- Bond pricing and yield analysis
- Term structure of interest rates
Domain 4 – Asset Pricing Models
- Capital Asset Pricing Model (CAPM)
- Arbitrage Pricing Theory (APT)
- Risk premiums and expected returns
Domain 5 – Portfolio Management Principles
- Diversification and portfolio risk
- Efficient frontier and asset allocation
- Performance evaluation techniques
