Introduction

In the monograph the foundation of modern corporate finance and investment is laid. It is based on the authors’s works on modifying theory of capital cost and capital structure by Nobel Prize winners Modigliani and Miller, which led to the actual replacement of this theory by the modern theory by Brusov–Filatova–Orekhova (BFO theory) (Brusov et al. Appl Financ Econ 21:815–824, 2011a; Res J Econ Bus ICT 2:16–21, 2011b; Res J Econ Bus ICT (UK) 2:11–15, 2011c; Appl Financ Econ 22(13):1043–1052, 2012a; J Rev Glob Econ 1:106–111, 2012b; J Rev Glob Econ 2:94–116, 2013a; J Rev Glob Econ 2:183–193, 2013b; Cogent Econ Financ 2:1–13, 2014; Filatova et al. Bull FU 48:68–77, 2008). The authors have moved from the assumption of Modigliani–Miller concerning the perpetuity (infinite time of life) of companies and further elaborated quantitative theory of valuation of core parameters of financial activities of companies with arbitrary time of life. The BFO theory has been generalized to the case of variable income, to arbitrary frequency of income tax payments, to advance payments of income tax, etc., as well as to their combinations. These generalizations significantly expand the applicability of BFO theory in practice, in particular, in corporate finance, business valuation, investments, ratings, etc.