Explore core concepts in corporate finance through interactive calculators and visualizations
The periodic rate is the fundamental object. Set a rate per period, compound it, and watch value grow. EAR is just the periodic rate compounded up to a year.
Open DemoThe AIR is a convention, not a calculation. See how multiplying instead of compounding systematically understates the true annual cost -- and why it persists.
Open DemoCalculate present and future values of annuities and perpetuities. Understand the mechanics of regular payment streams and their valuation.
Open DemoApply net present value analysis to investment decisions. Compare NPV, IRR, and payback period rules for project evaluation.
Open DemoExplore the A = L + E identity interactively. Adjust line items and see how the income statement flows into retained earnings.
Open DemoPrice bonds based on coupon rates and yield to maturity. Observe how bond prices move inversely with interest rates and why duration matters.
Open DemoExamine different yield curve shapes and what they signal about economic conditions. Explore normal, flat, and inverted curves interactively.
Open DemoStudy the relationship between risk (volatility) and expected return. Understand standard deviation, Sharpe ratios, and risk premiums.
Open DemoSee why geometric mean is always less than arithmetic mean and how volatility drives the gap. Track growth of $1 under actual vs averaged returns.
Open DemoExplore how combining assets with different correlation patterns reduces portfolio risk. Build and optimize diversified portfolios interactively.
Open DemoValue stocks using the dividend discount model. Estimate intrinsic value based on expected dividends and required returns.
Open DemoApply the capital asset pricing model to estimate required returns. Explore the security market line and how beta influences return expectations.
Open DemoEstimate beta via OLS regression of excess returns. Scatter plot with regression line, R-squared, alpha, and Security Market Line comparison.
Open DemoSee why YTM overstates the true cost of debt for risky firms. Decompose credit spreads into expected loss and risk premium components.
Open DemoStep through the complete capital budgeting process from project identification to decision. Calculate cash flows, NPV, and make investment decisions.
Open DemoCompute the weighted average cost of capital for a firm. Understand how the cost of equity and debt combine to determine the discount rate for projects.
Open DemoIdentify which cash flows matter for capital budgeting decisions. Distinguish incremental from sunk costs, opportunity costs, and side effects.
Open DemoCompare MACRS depreciation schedules with straight-line. See how accelerated depreciation creates NPV-positive tax shield timing differences.
Open DemoExplore MM propositions on capital structure. See how financial leverage affects firm value in perfect and imperfect markets.
Open DemoApply adjusted present value to value firms with complex capital structures. Account for tax shields and other financing side effects.
Open DemoBuild a complete discounted cash flow model to value a company. Project cash flows, estimate terminal value, and derive intrinsic stock price.
Open DemoVisualize how interest tax deductibility creates value. Compare levered vs unlevered firm values and explore the PV of the tax shield.
Open DemoExplore how financial distress costs offset tax shield benefits. Find the optimal leverage point where firm value is maximized.
Open DemoDebunk common misconceptions about Modigliani-Miller. Interactive scenarios showing why cheap debt doesn't lower WACC in a perfect market.
Open Demo