Corporate finance is concerned with how to make capital investment decisions (capital budgeting); how to finance company activities, including new investments; and how to make dividend payment decisions. This book will lecture on important topics for corporate finance, which will cover methods, theory, and policy decisions. The topics which will be addressed in this book include how streams of cash flows are valued, how financial managers evaluate investment opportunities, how financial statements are used to evaluate a company's financial condition and its market value, how a manager chooses between mutually exclusive opportunities, and how they evaluate different types of investment. This book will also discuss the treatment of risk when evaluating a project and the required returns on a project. Alternative sources of funds used to finance new projects, which include internal and external sources of funds, will be theoretically and empirically demonstrated. Lastly, long-term financial planning will be discussed.
Contents:
Overview and Background:Introduction and Overview of Financial ManagementInformation and Environment for Financial ManagementDeveloping a Long-term Financial PlanValuation Principles and Applications:Present Values: Concepts and MethodsValuation of Bonds and StocksCapital Budgeting and Risk Return Trade-off:Capital Budgeting Under CertaintyRisk Estimation and DiversificationRisk and Return Trade-off AnalysisCapital Budgeting Under UncertaintyCost of Capital, Financing Choices, and Dividend Decisions:The Cost of CapitalCapital Structure and ValuationThe Dividend PuzzleInteraction of Financing, Investment, and Dividend PoliciesLong-term Financing:Long-term Debt FinancingCommon Stock, Preferred Stock, and Financing DecisionsWarrants and Convertible SecuritiesLeasing: Theory and PracticeShort-term Financing and Financial Planning:Short-term Financial Analysis and PlanningCredit ManagementCash, Marketable Securities, and Inventory ManagementFinancial Planning and StrategyOptions, Futures, and Corporate Finance:Options, Futures, Swaps, and Risk ManagementOption Pricing Theory and Firm ValuationPortfolio Insurance and Synthetic OptionsOther Topics:Mergers and Divestitures: Theory and EvidenceBankruptcy, Workouts, and Corporate ReorganizationInternational Financial ManagementAppendices:ProjectsStandard Normal Table (Z)Some Useful FormulasSolutions to Select End-of-Chapter Problems
Readership: Undergraduate and graduate students specialising in corporate finance and general business students taking finance courses.
Key Features:
This book combines corporate finance with strategyThis book contains a lot of examples of real company analysisThis book uses an interdisciplinary approach to integrate corporate finance with accounting, statistics, and ExcelThis book integrates investment analysis to teach students to analyze the fundamental value of a firm
