I would like to present to you, my paper on “Ten Badly Explained Topics in Most Corporate Finance Books”
I thought that perhaps it could be of interest for you and I would very much appreciate your opinions and criticisms.
You can download it here: http://ssrn.com/abstract=2044576
ABSTRACT. This paper addresses 10 corporate finance topics that are not well treated (or not treated at all) in many Corporate Finance Books.
The topics are: 1. Where the WACC equation comes from. 2. The WACC is not a cost. 3. How is the WACC equation when the value of debt is not equal to its nominal value. 4. Textbooks differ a lot on their recommendations regarding the equity premium. 5. The term equity premium is used to designate four different concepts. 6. Which Equity Premium do professors and practitioners use? 7. Calculated (historical) betas change dramatically from one day to the next. 8. Why many professors continue using calculated (historical) betas in class? 9. EVA does not measure Shareholder value creation. 10. The relationship between the WACC and the value of the tax shields (VTS)
Thanks and best regards,
Pablo Fernandez
Professor of Finance. IESE Business School. Madrid. Spain
PhD Business Ec (Finance). Harvard University