[Verse 1] Money today is worth more than tomorrow That's the golden rule you need to follow Present value brings the future back in time Discounting cash flows, dollar by dollar, dime by dime Compound interest makes your money grow Future value shows you where your wealth will go [Chorus] NPV is king, IRR can mislead Time value of money is all that you need WACC it up, discount the cash flow Corporate finance, this is what you need to know Beta times the market premium Plus the risk-free rate, that's your requiem [Verse 2] Free cash flow to firm, that's FCFF Subtract your taxes, add depreciation free Terminal value at the end of time Perpetuity growth or exit multiple's fine Enterprise value minus net debt Equals equity value, don't forget [Chorus] NPV is king, IRR can mislead Time value of money is all that you need WACC it up, discount the cash flow Corporate finance, this is what you need to know Beta times the market premium Plus the risk-free rate, that's your requiem [Verse 3] Modigliani-Miller said structure don't matter In perfect markets, it's just financial chatter But tax shields make debt attractive While bankruptcy costs are subtractive Pecking order says use internal funds first Then debt, then equity when financing's worst [Bridge] Principal-agent problems arise When managers' goals don't align Board oversight and compensation ties Keep shareholders' interests in line Real options give you flexibility To abandon, expand, or wait and see [Chorus] NPV is king, IRR can mislead Time value of money is all that you need WACC it up, discount the cash flow Corporate finance, this is what you need to know Beta times the market premium Plus the risk-free rate, that's your requiem [Outro] From DCF to trading comps we compare Precedent transactions show what markets bear Dividends signal, buybacks return cash M&A creates value if integration doesn't crash Corporate finance, now you understand The Wharton way to make your money grand
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