Corporate Issuers: CFA® Level I

It is 6–9% of the 2027 Level I exam. 24 learning outcomes across 7 learning modules.

240 practice questions and 8 formula cards on this topic in the app.

Organizational Forms, Corporate Issuer Features, and Ownership

• Explain the legal forms a business can take and what each means for its owners
• Contrast corporate issuers that are publicly owned with those held privately

Investors and Other Stakeholders

• Say why debt covenants exist and what they do
• Explain how environmental and social considerations feed into investment analysis
• Contrast what lenders and shareholders are entitled to and what drives each group

Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits

• Outline the main stakeholder groups and the governance tools that serve them
• Weigh the upsides and risks of managing stakeholder relationships

Working Capital and Liquidity

• Explain how firms manage working capital
• Set out where firms can raise short-term funds
• Explain how a firm handles its cash and marketable securities
• Work out the cash conversion cycle and explain what it shows

Capital Investments and Capital Allocation

• Explain the kinds of capital investment a firm makes and how it allocates capital
• Work out a project's internal rate of return and net present value, and explain each
• Set out frequent mistakes in capital allocation and explain real options
• Work out return on invested capital and explain what it reveals

Capital Structure

• Set out what drives a firm's capital structure
• Trace how a firm's capital structure shifts as it moves through its life cycle
• Set out the Modigliani-Miller propositions and what they imply for the financing mix
• Explain what target and optimal capital structures mean
• Work out a firm's weighted average cost of capital
• Work out what debt costs a firm after tax
• Work out the cost of both common and preferred equity

Business Models

• Set out what makes up a business model
• Outline the usual kinds of business model and how they set prices