Corporate Finance (FIN 201) Leverage, Payout Policy, and Final Exam Review
New York University
Corporate Finance (FIN 201) | Exam Review

Overview
A final review on capital structure, leverage effects, dividends, stock repurchases, and firm value reasoning.

Key topics
•capital structure basics
•operating and financial leverage
•dividend policy
•repurchases and signaling

Suggested study tasks
•compare two leverage scenarios
•interpret one payout decision in context
•connect financing choice to risk and return

Common pitfalls
•assuming more debt is always better
•mixing earnings per share with value creation
•ignoring the risk side of leverage