2025 CFA© Program Curriculum Level I Volume 3 - CORPORATE ISSUER

✍ Scribed by CFA Institute

• Publisher: CFA Institute
• Year: 2025
• Tongue: English
• Leaves: 250
• Edition: 2025
• Category: Library

✦ Table of Contents

How to Use the CFA Program Curriculum
CFA Institute Learning Ecosystem (LES)
Designing Your Personal Study Program
Errata
Other Feedback
Corporate Issuers
Learning Module 1 Organizational Forms, Corporate Issuer Features, and Ownership
Introduction
Organizational Forms of Businesses
Organizational Forms of Businesses
Sole Trader or Proprietorship
Partnerships
Limited Companies
Key Features of Corporate Issuers
Legal Identity
Owner–Manager Separation
Owner/Shareholder Liability
External Financing
Taxation
Publicly vs. Privately Owned Corporate Issuers
Exchange Listing, Liquidity, and Price Transparency
Share Issuance
Registration and Disclosure Requirements
Going from Private to Public 
Going from Public to Private
The Varieties of Corporate Owners
Practice Problems
Solutions
Learning Module 2 Investors and Other Stakeholders
Introduction
Financial Claims of Lenders and Shareholders
Debt Versus Equity
Debt Versus Equity: Risk and Return
Conflicts of Interest among Lenders and Shareholders
Corporate Stakeholders and Governance
Shareholders versus Stakeholders
Investors
Board of Directors
Managers
Employees
Customers
Suppliers
Governments
Corporate ESG Considerations
Environmental Factors
Social Factors
Governance Factors
Evaluating ESG-Related Risks and Opportunities
Practice Problems
Solutions
Learning Module 3 Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
Introduction
Stakeholder Conflicts and Management
Shareholder, Board Director, and Manager Relationships
Controlling and Minority Shareholder Relationships
Shareholder versus Creditor Interests
Corporate Governance Mechanisms
Corporate Reporting and Transparency
Shareholder Mechanisms
Creditor Mechanisms
Board and Management Mechanisms
Employee Mechanisms
Customer and Supplier Mechanisms
Government Mechanisms
Corporate Governance Risks and Benefits
Operational Risks and Benefits
Legal, Regulatory, and Reputational Risks and Benefits
Financial Risks and Benefits
Practice Problems
Solutions
Learning Module 4 Working Capital and Liquidity
Introduction
Cash Conversion Cycle
Liquidity
Primary Liquidity Sources
Secondary Liquidity Sources
Factors Affecting Liquidity: Drags and Pulls
Measuring and Evaluating Liquidity
Managing Working Capital and Liquidity
Working Capital Management
Liquidity and Short-Term Funding
Practice Problems
Solutions
Learning Module 5 Capital Investments and Capital Allocation
Introduction
Capital Investments
Going Concern Projects
Regulatory Compliance Projects
Expansion of Existing Business
New Lines of Business and Other Projects
Capital Allocation
Net Present Value (NPV)
Internal Rate of Return
Return on Invested Capital
Capital Allocation Principles and Pitfalls
Capital Allocation Principles
Capital Allocation Pitfalls
Real Options
Practice Problems
Solutions
Learning Module 6 Capital Structure
Introduction
The Cost of Capital
Factors Affecting Capital Structure
Determinants of the Amount and Type of Financing Needed
Determinants of the Costs of Debt and Equity
Modigliani–Miller Capital Structure Propositions
Capital Structure Irrelevance (MM Proposition I without Taxes)
Higher Financial Leverage Raises the Cost of Equity (MM Proposition II without Taxes)
Firm Value with Taxes (MM Proposition II with Taxes)
Cost of Capital (MM Proposition II with Taxes)
Cost of Financial Distress
Optimal Capital Structure
Target Weights and WACC
Pecking Order Theory and Agency Costs
Practice Problems
Solutions
Learning Module 7 Business Models
Introduction
Defining the Business Model
Business Model Features
Pricing and Revenue Models
The Value Proposition (Who + What + Where + How Much)
Business Organization and Capabilities
Business Model Types
Conventional Business Models
Business Model Variations
Business Model Innovation
Network Effects and Platform Business Models
Practice Problems
Solutions
Glossary