CIFA Intermediate Level
Corporate Finance glossary
Every term this guide defines, A to Z, each with the chapter that teaches it. Open it when a word in a question is unfamiliar, and test yourself on it in the last week: cover the definition and say it in one sentence.
2 terms from the free first chapter
C
- Compensation and incentives
Linking pay to share price or economic value added performance (as in CIFA Introduction to Finance and Investment) is the standard resolution to the agency problem above, aligning what management is rewarded for with what actually creates shareholder wealth.
Taught in Overview of corporate finance
P
- Performance measurement
Return-based measures (ROA, ROE, ROIC; covered in CIFA Financial Statements Analysis, under profitability analysis), residual income and EVA (covered in CIFA Equity Investments Analysis, under residual income valuation), and total shareholder return, each assessing managerial performance from a different angle.
Taught in Overview of corporate finance
The full glossary adds every term from the other 12 chapters, A to Z, each with the chapter that teaches it.