[Verse 1] Money travels through time like light bends space Present value shrinks what future holds Discount rates determine the exchange Annuities stream, perpetuities unfold Calculate backwards from tomorrow's gold [Chorus] WACC weighs the capital cost Beta measures systematic risk Debt or equity, count what's lost CAPM builds the pricing disc Time value, cost structure, working capital twist [Verse 2] Modigliani-Miller cuts through noise Perfect markets make structure irrelevant But taxes, bankruptcy change our choice Optimal leverage finds the relevant Trade-off between shield and distress descent [Chorus] WACC weighs the capital cost Beta measures systematic risk Debt or equity, count what's lost CAPM builds the pricing disc Time value, cost structure, working capital twist [Verse 3] Dividends signal or just redistribute Miller says irrelevant in perfect world But clienteles and taxes contribute Stock splits cosmetic, repurchases curled Back to shareholders, value unfurled [Bridge] Cash conversion cycles spin around Receivables, inventory, payables dance Days sales outstanding can be found Subtract days payable in the finance Working capital needs advance [Verse 4] Bonds price inverse to interest rates Duration measures price sensitivity Options asymmetric risk creates Forwards lock future delivery Swaps exchange cash flow activity [Chorus] WACC weighs the capital cost Beta measures systematic risk Debt or equity, count what's lost CAPM builds the pricing disc Time value, cost structure, working capital twist [Outro] Corporate finance weaves the threads Capital allocation decisions spread Through markets where the money treads
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