Corporate Finance, 6th Edition

Corporate Finance, 6th Edition

by Pierre Vernimmen, Pascal Quiry, Yann Le Fur
Released February 2022
Publisher(s): Wiley
ISBN: 9781119841623

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Book description

Get a distinctly European take on corporate finance

The newly revised Sixth Edition of Corporate Finance: Theory and Practice delivers a uniquely European perspective on the foundations and latest trends in corporate finance, including the marked shifts brought about by sustainability, environmental, and social concerns.

Containing updated statistics and graphs, the book covers the latest innovations in financial practice, like the rise of private equity investment, the continuous decline in listed companies, and the dramatic surge of sustainability-linked financing products. Readers get access to an accompanying website that offers regularly updated statistics, graphs, and charts, direct email access to the authors, quizzes, case studies, articles, and more.

The book also includes:

  • A balanced blend of theory and practice from an author team with a presence in academia and business
  • Access to The Vernimmen.com Newsletter, which provides monthly updates on corporate finance to over 60,000 subscribers
Ideal for students studying corporate finance as part of an MBA or a master's level programme in Finance, Corporate Finance: Theory and Practice is also required reading for practicing professionals in the UK and continental Europe seeking a distinctly European treatment of a critically important subject.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. About the Authors
  5. Preface
  6. Frequently used symbols
  7. Chapter 1: TOWARDS A GREEN, RESPONSIBLE AND SUSTAINABLE CORPORATE FINANCE
    1. Section 1.1 AN UNPRECEDENTED CHANGE UNDERWAY
    2. Section 1.2 A DECISIVE IMPETUS FROM INVESTORS
    3. Section 1.3 BUSINESS BEHAVIOUR AND THEIR FINANCING ARE GRADUALLY CHANGING
    4. Section 1.4 THE THREE ROLES OF THE FINANCIAL MANAGER
    5. SUMMARY
    6. QUESTIONS
    7. ANSWERS
    8. BIBLIOGRAPHY
    9. NOTES
  8. Section I: FINANCIAL ANALYSIS
    1. PART ONE: FUNDAMENTAL CONCEPTS IN FINANCIAL ANALYSIS
      1. Chapter 2: CASH FLOW
        1. Section 2.1 CLASSIFYING COMPANY CASH FLOWS
        2. Section 2.2 OPERATING AND INVESTMENT CYCLES
        3. Section 2.3 FINANCIAL RESOURCES
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISES
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      2. Chapter 3: EARNINGS
        1. Section 3.1 ADDITIONS TO WEALTH AND DEDUCTIONS FROM WEALTH
        2. Section 3.2 DIFFERENT INCOME STATEMENT FORMATS
        3. SUMMARY
        4. QUESTIONS
        5. EXERCISES
        6. ANSWERS
        7. BIBLIOGRAPHY
        8. NOTES
      3. Chapter 4: CAPITAL EMPLOYED AND INVESTED CAPITAL
        1. Section 4.1 THE BALANCE SHEET: DEFINITIONS AND CONCEPTS
        2. Section 4.2 A CAPITAL-EMPLOYED ANALYSIS OF THE BALANCE SHEET
        3. Section 4.3 A SOLVENCY-AND-LIQUIDITY ANALYSIS OF THE BALANCE SHEET
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISE
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      4. Chapter 5: WALKING THROUGH FROM EARNINGS TO CASH FLOW
        1. Section 5.1 ANALYSIS OF EARNINGS FROM A CASH FLOW PERSPECTIVE
        2. Section 5.2 CASH FLOW STATEMENT
        3. SUMMARY
        4. QUESTIONS
        5. EXERCISE
        6. ANSWERS
        7. BIBLIOGRAPHY
        8. NOTES
      5. Chapter 6: GETTING TO GRIPS WITH CONSOLIDATED ACCOUNTS
        1. Section 6.1 CONSOLIDATION METHODS
        2. Section 6.2 CONSOLIDATION-RELATED ISSUES
        3. Section 6.3 TECHNICAL ASPECTS OF CONSOLIDATION
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISE
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      6. Chapter 7: HOW TO COPE WITH THE MOST COMPLEX POINTS IN FINANCIAL ACCOUNTS
        1. Section 7.1 ACCRUALS
        2. Section 7.2 CASH ASSETS
        3. Section 7.3 CONSTRUCTION CONTRACTS
        4. Section 7.4 CONVERTIBLE BONDS AND LOANS
        5. Section 7.5 CURRENCY TRANSLATION ADJUSTMENTS
        6. Section 7.6 DEFERRED TAX ASSETS AND LIABILITIES
        7. Section 7.7 DILUTION PROFIT AND LOSSES
        8. Section 7.8 FINANCIAL HEDGING INSTRUMENTS
        9. Section 7.9 IMPAIRMENT LOSSES
        10. Section 7.10 INTANGIBLE FIXED ASSETS
        11. Section 7.11 INVENTORIES
        12. Section 7.12 LEASES
        13. Section 7.13 OFF-BALANCE-SHEET COMMITMENTS
        14. Section 7.14 PENSIONS AND OTHER EMPLOYEE BENEFITS
        15. Section 7.15 PREFERENCE SHARES17
        16. Section 7.16 PROVISIONS
        17. Section 7.17 STOCK OPTIONS
        18. Section 7.18 TANGIBLE ASSETS
        19. Section 7.19 TREASURY SHARES
        20. BIBLIOGRAPHY
        21. NOTES
    2. PART TWO: FINANCIAL ANALYSIS AND FORECASTING
      1. Chapter 8: HOW TO PERFORM A FINANCIAL ANALYSIS
        1. Section 8.1 WHAT IS FINANCIAL ANALYSIS?
        2. Section 8.2 ECONOMIC ANALYSIS OF COMPANIES
        3. Section 8.3 AN ASSESSMENT OF A COMPANY'S ACCOUNTING POLICY
        4. Section 8.4 STANDARD FINANCIAL ANALYSIS PLAN
        5. Section 8.5 THE VARIOUS TECHNIQUES OF FINANCIAL ANALYSIS
        6. Section 8.6 RATINGS
        7. Section 8.7 SCORING TECHNIQUES
        8. Section 8.8 ARTIFICIAL INTELLIGENCE APPLIED TO FINANCIAL ANALYSIS
        9. SUMMARY
        10. QUESTIONS
        11. EXERCISES
        12. ANSWERS
        13. BIBLIOGRAPHY
        14. NOTE
      2. Chapter 9: MARGIN ANALYSIS: STRUCTURE
        1. Section 9.1 HOW OPERATING PROFIT IS FORMED
        2. Section 9.2 HOW OPERATING PROFIT IS ALLOCATED
        3. Section 9.3 STANDARD INCOME STATEMENTS (INDIVIDUAL AND CONSOLIDATED ACCOUNTS)
        4. Section 9.4 FINANCIAL ASSESSMENT
        5. Section 9.5 CASE STUDY: ARCELORMITTAL
        6. SUMMARY
        7. QUESTIONS
        8. EXERCISES
        9. ANSWERS
        10. NOTES
      3. Chapter 10: MARGIN ANALYSIS: RISKS
        1. Section 10.1 HOW OPERATING LEVERAGE WORKS
        2. Section 10.2 A MORE REFINED ANALYSIS PROVIDES GREATER INSIGHT
        3. Section 10.3 FROM ANALYSIS TO FORECASTING: THE CONCEPT OF NORMATIVE MARGIN
        4. Section 10.4 CASE STUDY: ARCELORMITTAL4
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISES
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
      4. Chapter 11: WORKING CAPITAL AND CAPITAL EXPENDITURES
        1. Section 11.1 THE NATURE OF WORKING CAPITAL
        2. Section 11.2 WORKING CAPITAL TURNOVER RATIOS
        3. Section 11.3 READING BETWEEN THE LINES OF WORKING CAPITAL
        4. Section 11.4 ANALYSING CAPITAL EXPENDITURES (CAPEX)
        5. Section 11.5 CASE STUDY: ARCELORMITTAL
        6. SUMMARY
        7. QUESTIONS
        8. EXERCISES
        9. ANSWERS
        10. BIBLIOGRAPHY
        11. NOTES
      5. Chapter 12: FINANCING
        1. Section 12.1 A DYNAMIC ANALYSIS OF THE COMPANY'S FINANCING
        2. Section 12.2 A STATIC ANALYSIS OF THE COMPANY'S FINANCING
        3. Section 12.3 CASE STUDY: ARCELORMITTAL
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISES
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      6. Chapter 13: RETURN ON CAPITAL EMPLOYED AND RETURN ON EQUITY
        1. Section 13.1 ANALYSIS OF CORPORATE PROFITABILITY
        2. Section 13.2 LEVERAGE EFFECT
        3. Section 13.3 USES AND LIMITATIONS OF THE LEVERAGE EFFECT
        4. Section 13.4 CASE STUDY: ARCELORMITTAL
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISES
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
      7. Chapter 14: CONCLUSION OF FINANCIAL ANALYSIS
        1. Section 14.1 SOLVENCY
        2. Section 14.2 VALUE CREATION
        3. Section 14.3 FINANCIAL ANALYSIS WITHOUT THE RELEVANT ACCOUNTING DOCUMENTS
        4. Section 14.4 CASE STUDY: ARCELORMITTAL
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISE
        8. ANSWERS
        9. EXERCISE
        10. NOTES
  9. Section II: INVESTORS AND MARKETS
    1. PART ONE: INVESTMENT DECISION RULES
      1. Chapter 15: THE FINANCIAL MARKETS
        1. Section 15.1 THE ROLE OF CAPITAL MARKETS
        2. Section 15.2 PRIMARY, SECONDARY AND DERIVATIVE MARKETS
        3. Section 15.3 THE FUNCTIONS OF A FINANCIAL SYSTEM
        4. Section 15.4 THE RELATIONSHIP BETWEEN BANKS AND COMPANIES
        5. Section 15.5 THEORETICAL FRAMEWORK: EFFICIENT MARKETS
        6. Section 15.6 ANOTHER THEORETICAL FRAMEWORK UNDER CONSTRUCTION: BEHAVIOURAL FINANCE
        7. Section 15.7 INVESTORS' BEHAVIOUR
        8. SUMMARY
        9. QUESTIONS
        10. ANSWERS
        11. BIBLIOGRAPHY
        12. NOTES
      2. Chapter 16: THE TIME VALUE OF MONEY AND NET PRESENT VALUE
        1. Section 16.1 CAPITALISATION
        2. Section 16.2 DISCOUNTING
        3. Section 16.3 PRESENT VALUE AND NET PRESENT VALUE OF A FINANCIAL SECURITY
        4. Section 16.4 WHAT DOES NET PRESENT VALUE DEPEND ON?
        5. Section 16.5 SOME EXAMPLES OF SIMPLIFICATION OF PRESENT VALUE CALCULATIONS
        6. SUMMARY
        7. QUESTIONS
        8. EXERCISES
        9. ANSWERS
        10. BIBLIOGRAPHY
        11. NOTE
      3. Chapter 17: THE INTERNAL RATE OF RETURN
        1. Section 17.1 CALCULATING YIELD TO MATURITY
        2. Section 17.2 YIELD TO MATURITY AS AN INVESTMENT CRITERION
        3. Section 17.3 THE LIMITS OF YIELD TO MATURITY OR IRR
        4. Section 17.4 EFFECTIVE ANNUAL RATE, NOMINAL RATES AND PROPORTIONAL RATES
        5. Section 17.5 SOME MORE FINANCIAL MATHEMATICS: LOAN REPAYMENT TERMS
        6. SUMMARY
        7. QUESTIONS
        8. EXERCISES
        9. ANSWERS
        10. BIBLIOGRAPHY
        11. NOTE
    2. PART TWO: THE RISK OF SECURITIES AND THE REQUIRED RATE OF RETURN
      1. Chapter 18: RISK AND RETURN
        1. Section 18.1 SOURCES OF RISK
        2. Section 18.2 RISK AND FLUCTUATION IN THE VALUE OF A SECURITY
        3. Section 18.3 TOOLS FOR MEASURING RETURN AND RISK
        4. Section 18.4 MARKET AND SPECIFIC RISK
        5. Section 18.5 THE BETA COEFFICIENT
        6. Section 18.6 PORTFOLIO RISK
        7. Section 18.7 CHOOSING AMONG SEVERAL RISKY ASSETS AND THE EFFICIENT FRONTIER
        8. Section 18.8 CHOOSING BETWEEN SEVERAL RISKY ASSETS AND A RISK-FREE ASSET: THE CAPITAL MARKET LINE
        9. Section 18.9 HOW PORTFOLIO MANAGEMENT WORKS
        10. SUMMARY
        11. QUESTIONS
        12. EXERCISES
        13. ANSWERS
        14. BIBLIOGRAPHY
        15. NOTE
      2. Chapter 19: THE REQUIRED RATE OF RETURN
        1. Section 19.1 RETURN REQUIRED BY INVESTORS: THE CAPM
        2. Section 19.2 THE SECURITY MARKET LINE
        3. Section 19.3 LIMITS OF THE CAPM
        4. Section 19.4 MULTIFACTOR MODELS
        5. Section 19.5 FRACTALS AND OTHER LEADS
        6. Section 19.6 TERM STRUCTURE OF INTEREST RATES
        7. SUMMARY
        8. QUESTIONS
        9. EXERCISES
        10. ANSWERS
        11. BIBLIOGRAPHY
        12. NOTES
    3. PART THREE: FINANCIAL SECURITIES
      1. Chapter 20: BONDS
        1. Section 20.1 BASIC CONCEPTS
        2. Section 20.2 THE YIELD TO MATURITY
        3. Section 20.3 FLOATING-RATE BONDS
        4. Section 20.4 GREEN AND SOCIALLY RESPONSIBLE BONDS
        5. Section 20.5 THE VOLATILITY OF DEBT SECURITIES
        6. Section 20.6 DEFAULT RISK AND THE ROLE OF RATING
        7. SUMMARY
        8. QUESTIONS
        9. EXERCISES
        10. ANSWERS
        11. BIBLIOGRAPHY
        12. NOTES
      2. Chapter 21: OTHER DEBT PRODUCTS
        1. Section 21.1 MARKETABLE DEBT SECURITIES
        2. Section 21.2 BANK DEBT PRODUCTS
        3. Section 21.3 ASSET-BASED FINANCING
        4. Section 21.4 OTHER DEBT PRODUCTS
        5. SUMMARY
        6. QUESTIONS
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      3. Chapter 22: SHARES
        1. Section 22.1 BASIC CONCEPTS
        2. Section 22.2 MULTIPLES
        3. Section 22.3 KEY MARKET DATA
        4. Section 22.4 HOW TO PERFORM A STOCK MARKET ANALYSIS
        5. Section 22.5 ADJUSTING PER SHARE DATA FOR TECHNICAL FACTORS
        6. SUMMARY
        7. QUESTIONS
        8. EXERCISES
        9. ANSWERS
        10. BIBLIOGRAPHY
        11. NOTES
      4. Chapter 23: OPTIONS
        1. Section 23.1 DEFINITION AND THEORETICAL FOUNDATION OF OPTIONS
        2. Section 23.2 MECHANISMS USED IN PRICING OPTIONS
        3. Section 23.3 ANALYSING OPTIONS
        4. Section 23.4 PARAMETERS TO VALUE OPTIONS
        5. Section 23.5 METHODS FOR PRICING OPTIONS
        6. Section 23.6 TOOLS FOR MANAGING AN OPTIONS POSITION
        7. SUMMARY
        8. QUESTIONS
        9. EXERCISES
        10. ANSWERS
        11. BIBLIOGRAPHY
      5. Chapter 24: HYBRID SECURITIES
        1. Section 24.1 WARRANTS
        2. Section 24.2 CONVERTIBLE BONDS
        3. Section 24.3 PREFERENCE SHARES
        4. Section 24.4 OTHER HYBRID SECURITIES
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISE
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
      6. Chapter 25: SELLING SECURITIES
        1. Section 25.1 GENERAL PRINCIPLES IN THE SALE OF SECURITIES
        2. Section 25.2 INITIAL PUBLIC OFFERINGS
        3. Section 25.3 ICOS
        4. Section 25.4 CAPITAL INCREASES
        5. Section 25.5 BLOCK TRADES OF SHARES
        6. Section 25.6 BONDS
        7. Section 25.7 CONVERTIBLE AND EXCHANGEABLE BONDS
        8. Section 25.8 SYNDICATED LOANS
        9. SUMMARY
        10. QUESTIONS
        11. EXERCISES
        12. ANSWERS
        13. BIBLIOGRAPHY
        14. NOTES
  10. Section III: VALUE
    1. Chapter 26: VALUE AND CORPORATE FINANCE
      1. Section 26.1 THE FINANCIAL PURPOSE OF A COMPANY IS TO CREATE VALUE
      2. Section 26.2 VALUE CREATION AND MARKETS IN EQUILIBRIUM
      3. Section 26.3 VALUE AND ORGANISATION THEORIES
      4. Section 26.4 HOW CAN WE CREATE VALUE?
      5. Section 26.5 VALUE AND TAXATION
      6. Section 26.6 A BREAK BEFORE MOVING TO THE NEXT STEP
      7. SUMMARY
      8. QUESTIONS
      9. EXERCISE
      10. ANSWERS
      11. BIBLIOGRAPHY
      12. NOTES
    2. Chapter 27: MEASURING VALUE CREATION
      1. Section 27.1 OVERVIEW OF THE DIFFERENT CRITERIA
      2. Section 27.2 NPV, THE ONLY RELIABLE CRITERION
      3. Section 27.3 FINANCIAL/ACCOUNTING CRITERIA
      4. Section 27.4 MARKET CRITERIA
      5. Section 27.5 ACCOUNTING CRITERIA
      6. Section 27.6 SYNTHESIS
      7. SUMMARY
      8. QUESTIONS
      9. EXERCISES
      10. ANSWERS
      11. BIBLIOGRAPHY
      12. NOTES
    3. Chapter 28: INVESTMENT CRITERIA
      1. Section 28.1 THE PREDOMINANCE OF NPV AND THE IMPORTANCE OF IRR
      2. Section 28.2 THE MAIN LINES OF REASONING
      3. Section 28.3 WHICH CASH FLOWS ARE RELEVANT?
      4. Section 28.4 OTHER INVESTMENT CRITERIA
      5. SUMMARY
      6. QUESTIONS
      7. EXERCISES
      8. ANSWERS
      9. BIBLIOGRAPHY
    4. Chapter 29: THE COST OF CAPITAL
      1. Section 29.1 THE COST OF CAPITAL AND THE RISK OF ASSETS
      2. Section 29.2 COMPUTING THE COST OF CAPITAL
      3. Section 29.3 SOME PRACTICAL APPLICATIONS
      4. Section 29.4 CAN CORPORATE MANAGERS INFLUENCE THE COST OF CAPITAL?
      5. SUMMARY
      6. QUESTIONS
      7. EXERCISES
      8. ANSWERS
      9. BIBLIOGRAPHY
      10. NOTES
    5. Chapter 30: RISK AND INVESTMENT ANALYSIS
      1. Section 30.1 ASSESSING RISK THROUGH THE BUSINESS PLAN
      2. Section 30.2 ASSESSING RISK THROUGH A MATHEMATICAL APPROACH
      3. Section 30.3 THE CONTRIBUTION OF REAL OPTIONS
      4. Section 30.4 WHAT IF THE RISK WAS YOU?
      5. SUMMARY
      6. QUESTIONS
      7. EXERCISE
      8. ANSWERS
      9. BIBLIOGRAPHY
      10. NOTE
    6. Chapter 31: VALUATION TECHNIQUES
      1. Section 31.1 OVERVIEW OF THE DIFFERENT METHODS
      2. Section 31.2 VALUATION BY DISCOUNTED CASH FLOW
      3. Section 31.3 MULTIPLE APPROACH OR PEER-GROUP COMPARISONS
      4. Section 31.4 THE SUM-OF-THE-PARTS METHOD (SOTP) OR NET ASSET VALUE (NAV)
      5. Section 31.5 COMPARISON OF VALUATION METHODS
      6. Section 31.6 PREMIUMS AND DISCOUNTS
      7. SUMMARY
      8. QUESTIONS
      9. EXERCISES
      10. ANSWERS
      11. BIBLIOGRAPHY
      12. NOTES
  11. Section IV: CORPORATE FINANCIAL POLICIES
    1. PART ONE: CAPITAL STRUCTURE POLICIES
      1. Chapter 32: CAPITAL STRUCTURE AND THE THEORY OF PERFECT CAPITAL MARKETS
        1. Section 32.1 THE ENTERPRISE VALUE
        2. Section 32.2 DEBT AND EQUITY
        3. Section 32.3 WHAT OUR GREAT-GRANDPARENTS THOUGHT
        4. Section 32.4 THE CAPITAL STRUCTURE POLICY IN PERFECT FINANCIAL MARKETS
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISES
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
      2. Chapter 33: CAPITAL STRUCTURE, TAXES AND ORGANISATION THEORIES
        1. Section 33.1 THE BENEFITS OF DEBT OR THE TRADE-OFF MODEL
        2. Section 33.2 DEBT TO CONTROL MANAGEMENT
        3. Section 33.3 SIGNALLING AND DEBT POLICY
        4. Section 33.4 INFORMATION ASYMMETRIES AND THE PECKING ORDER THEORY
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISES
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
      3. Chapter 34: DEBT, EQUITY AND OPTIONS THEORY
        1. Section 34.1 ANALYSING THE FIRM IN LIGHT OF OPTIONS THEORY
        2. Section 34.2 CONTRIBUTION OF OPTIONS THEORY TO THE VALUATION OF EQUITY
        3. Section 34.3 USING OPTIONS THEORY TO ANALYSE A COMPANY'S FINANCIAL DECISIONS
        4. Section 34.4 RESOLVING CONFLICTS BETWEEN SHAREHOLDERS AND CREDITORS
        5. Section 34.5 ANALYSING THE FIRM'S LIQUIDITY
        6. Section 34.6 CONCLUSION
        7. SUMMARY
        8. QUESTIONS
        9. EXERCISES
        10. ANSWERS
        11. BIBLIOGRAPHY
        12. NOTES
      4. Chapter 35: WORKING OUT DETAILS: THE DESIGN OF THE CAPITAL STRUCTURE
        1. Section 35.1 THE MAJOR CONCEPTS
        2. Section 35.2 HOW TO CHOOSE A CAPITAL STRUCTURE
        3. Section 35.3 EFFECTS OF THE FINANCING CHOICE ON ACCOUNTING AND FINANCIAL CRITERIA
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISE
        7. ANSWERS
        8. BIBLIOGRAPHY
    2. PART TWO: EQUITY CAPITAL
      1. Chapter 36: RETURNING CASH TO SHAREHOLDERS
        1. Section 36.1 REINVESTED CASH FLOW AND THE VALUE OF EQUITY
        2. Section 36.2 INTERNAL FINANCING AND FINANCIAL CRITERIA
        3. Section 36.3 WHY RETURN CASH TO SHAREHOLDERS?
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISES
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      2. Chapter 37: DISTRIBUTION IN PRACTICE: DIVIDENDS AND SHARE BUY-BACKS
        1. Section 37.1 DIVIDENDS
        2. Section 37.2 EXCEPTIONAL DIVIDENDS, SHARE BUY-BACKS AND CAPITAL REDUCTION
        3. Section 37.3 THE CHOICE BETWEEN DIVIDENDS, SHARE BUY-BACKS AND CAPITAL REDUCTION
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISES
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      3. Chapter 38: SHARE ISSUES
        1. Section 38.1 A DEFINITION OF A SHARE ISSUE
        2. Section 38.2 CURRENT AND NEW SHAREHOLDERS
        3. Section 38.3 SHARE ISSUES AND ACCOUNTING CRITERIA
        4. Section 38.4 SHARE ISSUES AND FINANCE THEORY
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISES
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
    3. PART THREE: DEBT CAPITAL
      1. Chapter 39: IMPLEMENTING A DEBT POLICY
        1. Section 39.1 DEBT STRUCTURE
        2. Section 39.2 COVENANTS
        3. Section 39.3 RENEGOTIATING DEBT
        4. Section 39.4 WHY KEEP CASH ON THE BALANCE SHEET?
        5. Section 39.5 THE LEVERS OF A GOOD DEBT POLICY
        6. SUMMARY
        7. QUESTIONS
        8. EXERCISE
        9. ANSWERS
        10. BIBLIOGRAPHY
        11. NOTE
  12. Section V: FINANCIAL MANAGEMENT
    1. PART ONE: CORPORATE GOVERNANCE AND FINANCIAL ENGINEERING
      1. Chapter 40: SETTING UP A COMPANY AND FINANCING START-UPS
        1. Section 40.1 FINANCIAL PARTICULARITIES OF THE COMPANY BEING SET UP
        2. Section 40.2 SOME BASIC PRINCIPLES FOR FINANCING A START-UP
        3. Section 40.3 INVESTORS IN START-UPS
        4. Section 40.4 THE ORGANISATION OF RELATIONSHIPS BETWEEN THE ENTREPRENEUR AND THE FINANCIAL INVESTORS
        5. Section 40.5 THE FINANCIAL MANAGEMENT OF A START-UP
        6. Section 40.6 THE PARTICULARITIES OF VALUING YOUNG COMPANIES
        7. Section 40.7 EXAMPLE INSPIRED BY A REAL CASE: EXAMPLE.COM
        8. SUMMARY
        9. QUESTIONS
        10. EXERCISES
        11. ANSWERS
        12. BIBLIOGRAPHY
        13. NOTES
      2. Chapter 41: SHAREHOLDERS
        1. Section 41.1 SHAREHOLDER STRUCTURE
        2. Section 41.2 HOW TO STRENGTHEN CONTROL OVER A COMPANY
        3. Section 41.3 STOCK MARKET OR INVESTMENT FUND SHAREHOLDING?
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISE
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      3. Chapter 42: CHOOSING A CORPORATE STRUCTURE
        1. Section 42.1 ORGANISING A DIVERSIFIED COMPANY
        2. Section 42.2 TO BE OR NOT TO BE LISTED
        3. Section 42.3 HAVING MINORITY SHAREHOLDERS IN SUBSIDIARIES?
        4. Section 42.4 JOINT VENTURES
        5. Section 42.5 BEING IN THE MINORITY
        6. Section 42.6 THE FINANCIAL STRUCTURE WITHIN THE GROUP
        7. Section 42.7 THE LEGAL STRUCTURE WITHIN THE GROUP
        8. SUMMARY
        9. QUESTIONS
        10. EXERCISE
        11. ANSWERS
        12. BIBLIOGRAPHY
        13. NOTES
      4. Chapter 43: CORPORATE GOVERNANCE
        1. Section 43.1 WHAT IS CORPORATE GOVERNANCE?
        2. Section 43.2 CORPORATE GOVERNANCE AND FINANCIAL THEORIES
        3. Section 43.3 VALUE AND CORPORATE GOVERNANCE
        4. SUMMARY
        5. QUESTIONS
        6. ANSWERS
        7. BIBLIOGRAPHY
        8. NOTES
      5. Chapter 44: INITIAL PUBLIC OFFERINGS (IPOS)
        1. Section 44.1 PREPARATION OF AN IPO
        2. Section 44.2 EXECUTION OF THE IPO
        3. Section 44.4 UNDERPRICING OF IPOS
        4. Section 44.5 HOW TO CARRY OUT A SUCCESSFUL IPO
        5. Section 44.6 PUBLIC TO PRIVATE
        6. SUMMARY
        7. QUESTIONS
        8. ANSWERS
        9. BIBLIOGRAPHY
      6. Chapter 45: TAKING CONTROL OF A COMPANY
        1. Section 45.1 THE RISE OF MERGERS AND ACQUISITIONS
        2. Section 45.2 CHOOSING A NEGOTIATING STRATEGY
        3. Section 45.3 TAKING OVER A LISTED COMPANY
        4. SUMMARY
        5. QUESTIONS
        6. ANSWERS
        7. BIBLIOGRAPHY
        8. NOTES
      7. Chapter 46: MERGERS AND DEMERGERS
        1. Section 46.1 ALL-SHARE DEALS
        2. Section 46.2 THE MECHANICS OF ALL-SHARE TRANSACTIONS
        3. Section 46.3 DEMERGERS AND SPLIT-OFFS
        4. SUMMARY
        5. QUESTIONS
        6. EXERCISES
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      8. Chapter 47: LEVERAGED BUYOUTS (LBOs)
        1. Section 47.1 LBO STRUCTURES
        2. Section 47.2 THE PLAYERS
        3. Section 47.3 LBOS AND FINANCIAL THEORY
        4. Section 47.4 THE LBO MARKET: A WELL-ESTABLISHED MARKET
        5. SUMMARY
        6. QUESTIONS
        7. ANSWERS
        8. BIBLIOGRAPHY
        9. NOTES
      9. Chapter 48: BANKRUPTCY AND RESTRUCTURING
        1. Section 48.1 CAUSES OF BANKRUPTCY
        2. Section 48.2 THE DIFFERENT BANKRUPTCY PROCEDURES
        3. Section 48.3 BANKRUPTCY AND FINANCIAL THEORY
        4. Section 48.4 RESTRUCTURING PLANS
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISES
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTE
    2. PART TWO: MANAGING WORKING CAPITAL, CASH FLOWS, FINANCIAL RISKS AND REAL ESTATE
      1. Chapter 49: MANAGING WORKING CAPITAL
        1. Section 49.1 A BIT OF COMMON SENSE
        2. Section 49.2 MANAGING RECEIVABLES
        3. Section 49.3 MANAGING TRADE PAYABLES
        4. Section 49.4 INVENTORY MANAGEMENT
        5. Section 49.5 CONCLUSION
        6. SUMMARY
        7. QUESTIONS
        8. EXERCISES
        9. ANSWERS
        10. BIBLIOGRAPHY
        11. NOTES
      2. Chapter 50: CASH MANAGEMENT
        1. Section 50.1 THE BASICS
        2. Section 50.2 CASH MANAGEMENT
        3. Section 50.3 CASH MANAGEMENT WITHIN A GROUP
        4. Section 50.4 INVESTING CASH BALANCES
        5. Section 50.5 THE CHANGING ROLE OF THE TREASURER
        6. SUMMARY
        7. QUESTIONS
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
      3. Chapter 51: MANAGING FINANCIAL RISKS
        1. Section 51.1 INTRODUCTION TO RISK MANAGEMENT
        2. Section 51.2 MEASURING FINANCIAL RISKS
        3. Section 51.3 PRINCIPLES OF FINANCIAL RISK MANAGEMENT
        4. Section 51.4 ORGANISED MARKETS – OTC MARKETS
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISES
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
      4. Chapter 52: MANAGING OPERATIONAL REAL ESTATE
        1. Section 52.1 METHODS FOR FINANCING REAL ESTATE
        2. Section 52.2 CRITERIA FOR CHOOSING REAL-ESTATE FINANCING
        3. Section 52.3 VALUE CREATION AND INVESTOR PERCEPTION
        4. Section 52.4 AN IDEAL WAY OF ORGANISING REAL ESTATE?
        5. SUMMARY
        6. QUESTIONS
        7. EXERCISE
        8. ANSWERS
        9. BIBLIOGRAPHY
        10. NOTES
  13. Epilogue – Finance and Strategy
    1. Section 1 CORPORATE STRATEGIES
    2. Section 2 SHAREHOLDERS
    3. Section 3 THE MACROECONOMIC ENVIRONMENT
    4. NOTE
  14. Top 20 Largest Listed Companies
  15. Index
  16. End User License Agreement

Product information

  • Title: Corporate Finance, 6th Edition
  • Author(s): Pierre Vernimmen, Pascal Quiry, Yann Le Fur
  • Release date: February 2022
  • Publisher(s): Wiley
  • ISBN: 9781119841623