Is the Corporate Finance final cumulative?

Usually, but the earlier material tends to appear inside larger questions rather than on its own: a WACC feeds an NPV, a bond's YTM becomes the cost of debt. The later chapters often carry most of the marks.

Can I bring a crib sheet to a corporate finance final?

It depends on your course. One page of your own formulas is common in North American courses; UK and Australian papers usually print a formulae sheet instead. Check the syllabus for this exam specifically.

What do students lose points on in WACC questions?

Using book instead of market weights, forgetting the tax adjustment on the cost of debt, and using the coupon rate instead of the yield to maturity as the pre-tax cost of debt.

What should go on the final formula sheet that was not on the midterm one?

Expected return and variance from scenarios, CAPM, the WACC formula with the after-tax cost of debt, Modigliani-Miller with taxes, and a reminder of which discount rate fits which project. Keep the annuity and bond formulas, compressed.

Corporate FinanceFinal exam7 topics

Corporate Finance final exam study sheet

The Corporate Finance final usually pulls the course together: you estimate a discount rate with CAPM and WACC and then use it in an NPV problem from the first half. Many finals are cumulative but weighted toward risk, cost of capital and capital structure. Time value is rarely tested alone at this point; it is the machinery inside every larger question.

Call it a formula sheet, a crib sheet, an exam aid sheet or revision notes; for this final it is one page that connects the discount rate to the valuation formulas.

Make this from your notes Read the reference sheet

Preview of the Corporate Finance reference sheet — the reference sheet for this exam

The scope

What this exam usually covers

These are the topics a typical cumulative corporate finance final grades. The later chapters vary most between courses, so confirm them on the review sheet.

Risk and return Expected return, variance and standard deviation from scenarios, portfolio return, and the idea that diversification removes firm-specific risk but not market risk.
CAPM and beta Required return equals the risk-free rate plus beta times the market risk premium; reading the security market line and judging whether a stock is under- or overpriced.
Cost of capital and WACC Cost of equity from CAPM or the dividend growth model, after-tax cost of debt from a bond's YTM, market-value weights, and when a project needs its own rate.
Capital budgeting with WACC Full project analysis: operating cash flow, capital spending, working capital and salvage, discounted at the WACC. Often the largest single question on the final.
Capital structure Modigliani-Miller with and without taxes, the interest tax shield, financial leverage and return on equity, and the trade-off between tax benefits and distress costs.
Valuation review Bond pricing and yields, the dividend discount model, and annuity and perpetuity formulas reappear inside cost-of-capital and project problems.
Payout policy Cash dividends versus repurchases, dividend dates, and why payout policy may not change firm value in perfect markets. Covered on some finals only.

Usually later

Options, real options, mergers and international finance appear on some finals and not others, often as short conceptual questions. Portfolio optimization beyond two assets and the derivation of the efficient frontier usually belong to investments courses. Check the review sheet for which of the last chapters made it in.

The rules

What a note sheet is usually allowed to include

Finance finals are among the more likely exams to permit a sheet: one page of formulas, sometimes front and back, plus a financial calculator, is a common rule, and a provided formula sheet is the other common rule. UK and Australian finance papers usually print the formulae and tables they expect you to use, so bringing a crib sheet is not normally an option. A Canadian aid sheet, where allowed, comes with stated dimensions. Policies for the final can differ from the midterm, so read the syllabus again. This page is a study sheet either way.

The sheet

The matching library sheet

A one-page reference for the whole topic, fact-checked, with the first part free to read. This exam page does not repeat it. Use it to see the material, then make a shorter study sheet from the notes your section actually used.

Corporate Finance reference sheet — the free part in text.
Unlock the full reference sheet to edit, print or save it as a PDF.

Make your own for this exam

Upload the slides or problem sets for the whole course, or start from your midterm sheet and add the risk, WACC and capital structure chapters. In the focus step, name what the review session stressed, such as WACC with market-value weights or MM with taxes. Choose one page or front and back to match the rule for the final.

Make this from your notes

FAQ

Questions

Is the Corporate Finance final cumulative?: Usually, but the earlier material tends to appear inside larger questions rather than on its own: a WACC feeds an NPV, a bond's YTM becomes the cost of debt. The later chapters often carry most of the marks.
Can I bring a crib sheet to a corporate finance final?: It depends on your course. One page of your own formulas is common in North American courses; UK and Australian papers usually print a formulae sheet instead. Check the syllabus for this exam specifically.
What do students lose points on in WACC questions?: Using book instead of market weights, forgetting the tax adjustment on the cost of debt, and using the coupon rate instead of the yield to maturity as the pre-tax cost of debt.
What should go on the final formula sheet that was not on the midterm one?: Expected return and variance from scenarios, CAPM, the WACC formula with the after-tax cost of debt, Modigliani-Miller with taxes, and a reminder of which discount rate fits which project. Keep the annuity and bond formulas, compressed.

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