Corporate Finance  Introduction
The material set forth in this chapter will comprise approximately 8% of the questions on your upcoming CFA Level 1 examination. Keep in mind that CFA Institute's exam questions are comprehensive. Be sure to know not only what these topics are, but how they relate to each other.
Within this section, we will discuss the agency problems associated with the agentprincipal relationship, the calculations and uses of the cost of capital in capital budgeting, the calculations and applications of Net Present Value (NPV), the types of risks and risk analysis techniques, the effect of leverage on a company or project's return, and the various dividend theories and related calculations.
AgentPrinciple Relationship
Within this section, we will discuss the agency problems associated with the agentprincipal relationship, the calculations and uses of the cost of capital in capital budgeting, the calculations and applications of Net Present Value (NPV), the types of risks and risk analysis techniques, the effect of leverage on a company or project's return, and the various dividend theories and related calculations.
AgentPrinciple Relationship
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RELATED TERMS

Net Present Value  NPV
Net Present Value (NPV) is the difference between the present ... 
Net Present Value Rule
A rule stating that an investment should be accepted if its net ... 
CFA Institute
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Chartered Financial Analyst  CFA
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