Book description
Merging theory and practice into a comprehensive, highly-anticipated textCorporate Finance continues its legacy as one of the most popular financial textbooks, with well-established content from a diverse and highly respected author team. Unique in its features, this valuable text blends theory and practice with a direct, succinct style and commonsense presentation. Readers will be introduced to concepts in a situational framework, followed by a detailed discussion of techniques and tools. This latest edition includes new information on venture finance and debt structuring, and has been updated throughout with the most recent statistical tables. The companion website provides statistics, graphs, charts, articles, computer models, and classroom tools, and the free monthly newsletter keeps readers up to date on the latest happenings in the field. The authors have generously made themselves available for questions, promising an answer in seventy-two hours.
Emphasizing how key concepts relate to real-world situations is what makes Corporate Finance a valuable reference with real relevance to the professional and student alike. Readers will gain insight into the methods and tools that shape the industry, allowing them to:
- Analyze investments with regard to hurdle rates, cash flows, side costs, and more
- Delve into the financing process and learn the tools and techniques of valuation
- Understand cash dividends and buybacks, spinoffs, and divestitures
- Explore the link between valuation and corporate finance
As the global economy begins to recover, access to the most current information and statistics will be required. To remain relevant in the evolving financial environment, practitioners will need a deep understanding of the mechanisms at work. Corporate Finance provides the expert guidance and detailed explanations for those requiring a strong foundational knowledge, as well as more advanced corporate finance professionals.
Table of contents
- Cover
- Praise Page
- Title Page
- Copyright
- About the authors
- Preface
- Frequently used symbols
- Section I: Financial Analysis
-
Chapter 1: What is corporate finance?
- Section 1.1 The financial manager is first and foremost a salesman …
- Section 1.2 … of financial securities …
- Section 1.3 … valued continuously by the financial markets
- Section 1.4 Most importantly, he is a negotiator …
- Section 1.5 … who never forgets to do an occasional reality check!
- Section 1.6 … he is also now a risk manager
- Summary
- Bibliography
- Part One: Fundamental concepts in financial analysis
- Chapter 2: Cash flow
- Chapter 3: Earnings
- Chapter 4: Capital employed and invested capital
- Chapter 5: Walking through from earnings to cash flow
- Chapter 6: Getting to grips with consolidated accounts
-
Chapter 7: How to cope with the most complex points in financial accounts
- Section 7.1 Accruals
- Section 7.2 Cash assets
- Section 7.3 Construction contracts
- Section 7.4 Convertible bonds and loans
- Section 7.5 Currency translation adjustments
- Section 7.6 Deferred tax assets and liabilities
- Section 7.7 Dilution profit and losses
- Section 7.8 Financial hedging instruments
- Section 7.9 Impairment losses
- Section 7.10 Intangible fixed assets
- Section 7.11 Inventories
- Section 7.12 Leases
- Section 7.13 Off-balance-sheet commitments
- Section 7.14 Pensions and other employee benefits
- Section 7.15 Preference shares17
- Section 7.16 Provisions
- Section 7.17 Stock options
- Section 7.18 Tangible assets
- Section 7.19 Treasury shares
- Bibliography
- Part Two: Financial Analysis and Forecasting
-
Chapter 8: How to perform a financial analysis
- Section 8.1 What is financial analysis?
- Section 8.2 Economic analysis of companies
- Section 8.3 An assessment of a company's accounting policy
- Section 8.4 Standard financial analysis plan
- Section 8.5 The various techniques of financial analysis
- Section 8.6 Ratings
- Section 8.7 Scoring techniques
- Section 8.8 Expert systems
- Summary
- Bibliography
- Chapter 9: Margin analysis: structure
- Chapter 10: Margin analysis: risks
- Chapter 11: Working capital and capital expenditures
- Chapter 12: Financing
- Chapter 13: Return on capital employed and return on equity
- Chapter 14: Conclusion of financial analysis
- Section II: Investors and Markets
- Part One: Investment decision rules
-
Chapter 15: The financial markets
- Section 15.1 The rise of capital markets
- Section 15.2 The functions of a financial system
- Section 15.3 The relationship between banks and companies
- Section 15.4 Theoretical framework: efficient markets
- Section 15.5 Another theoretical framework under construction: behavioural finance
- Section 15.6 Investors' behaviour
- Summary
- Bibliography
- Chapter 16: The time value of money and net present value
- Chapter 17: The internal rate of return
- Part Two: The risk of securities and the required rate of return
-
Chapter 18: Risk and return
- Section 18.1 Sources of risk
- Section 18.2 Risk and fluctuation in the value of a security
- Section 18.3 Tools for measuring return and risk
- Section 18.4 Market and specific risk
- Section 18.5 The beta coefficient
- Section 18.6 Portfolio risk
- Section 18.7 Choosing among several risky assets and the efficient frontier
- Section 18.8 Choosing between several risky assets and a risk-free asset: the capital market line
- Section 18.9 How portfolio management works
- Summary
- Bibliography
- Chapter 19: The required rate of return
- Part Three: Financial securities
- Chapter 20: Bonds
- Chapter 21: Other debt products
- Chapter 22: Shares
- Chapter 23: Options
- Chapter 24: Hybrid securities
- Chapter 25: Selling securities
- Section III: Value
- Chapter 26: Value and corporate finance
- Chapter 27: Measuring value creation
- Chapter 28: Investment criteria
- Chapter 29: The cost of capital
- Chapter 30: Risk and investment analysis
-
Chapter 31: Valuation techniques
- Section 31.1 Overview of the different methods
- Section 31.2 Valuation by discounted cash flow
- Section 31.3 Multiple approach or peer-group comparisons
- Section 31.4 The sum-of-the-parts method (SOTP) or net asset value (NAV)
- Section 31.5 Comparison of valuation methods
- Section 31.6 Premiums and discounts
- Summary
- Bibliography
- Section IV: Corporate Financial Policies
- Part One: Capital Structure Policies
- Chapter 32: Capital structure and the theory of perfect capital markets
- Chapter 33: Capital structure, taxes and organisation theories
-
Chapter 34: Debt, equity and options theory
- Section 34.1 Analysing the firm in light of options theory
- Section 34.2 Contribution of options theory to the valuation of equity
- Section 34.3 Using options theory to analyse a company's financial decisions
- Section 34.4 Resolving conflicts between shareholders and creditors
- Section 34.5 Analysing the firm's liquidity
- Section 34.6 Conclusion
- Summary
- Bibliography
- Chapter 35: Working out details: the design of the capital structure
- Part Two: Equity capital
- Chapter 36: Returning cash to shareholders
- Chapter 37: Distribution in practice: dividends and share buy-backs
- Chapter 38: Share issues
- Chapter 39: Implementing a debt policy
- Section V: Financial Management
- Part One: Corporate governance and financial engineering
-
Chapter 40: Setting up a company or financing start-ups
- Section 40.1 Financial particularities of the company being set up
- Section 40.2 Some basic principles for financing a start-up
- Section 40.3 Investors in start-ups
- Section 40.4 The organisation of relationships between the entrepreneur and the financial investors
- Section 40.5 The financial management of a start-up
- Section 40.6 The particularities of valuing young companies
- Section 40.7 Example inspired by a real case: Example.com
- Summary
- Bibliography
- Chapter 41: Choice of corporate structure
- Chapter 42: Initial public offerings (IPOs)
- Chapter 43: Corporate governance
- Chapter 44: Taking control of a company
- Chapter 45: Mergers and demergers
- Chapter 46: Leveraged buyouts (LBOs)
- Chapter 47: Bankruptcy and restructuring
- Part Two: Managing working capital, cash flows and financial risks
- Chapter 48: Managing working capital
- Chapter 49: Managing cash flows
- Chapter 50: Managing financial risks
- Epilogue – Finance and Strategy
- Top 20 Largest Listed Companies
- Index
- End User License Agreement
Product information
- Title: Corporate Finance, 4th Edition
- Author(s):
- Release date: November 2014
- Publisher(s): Wiley
- ISBN: 9781118849330
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