Future value is the value of a current asset at a specific time in the future calculated based on an assumed growth rate.

CAPM is a measure used by investors to evaluate the expected return on investments. It allows investors to diversify their investments to achieve the desired return based on the risk of each investment.

Equity-risk premium is the difference between expected returns from the stock market and the expected returns from risk-free investments.

Modern Portfolio Theory is a theory presented in 1952 by Harry Markowitz on how risk-averse investors can create portfolios to maximize the return on investments based on the optimal levels of risk.

The Modigliani-Miller Theorem suggests that a company’s capital structure and the average cost of capital does not have an impact on its overall value.

The Arbitrage Pricing Theory is a method used to estimate the returns on assets and portfolios. It is a model based on the linear relationship between an asset’s expected risk and return.

Within corporate finance, the agency problem is considered as the conflict of interest between the company’s managers and its stockholders.