Corporate finance : theory and practice

Corporate finance theory and practice

"Corporate Finance: Theory and Practice continues to hold sway as one of the most popular financial textbooks, thanks to its four unique features: A balanced blend of theory and practice: authors hold academic positions at top ranking universities and business schools and are also investment b...

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Detalles Bibliográficos
Otros Autores: Vernimmen, Pierre, author (author)
Formato: Libro electrónico
Idioma:Inglés
Publicado: Hoboken : Wiley 2018.
Edición:Fifth edition
Colección:THEi Wiley ebooks.
Materias:
Business enterprises > Finance.
Corporations > Finance.
Ver en Biblioteca Universitat Ramon Llull:https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009684435206719
Tabla de Contenidos:
  • Intro
  • Corporate Finance
  • About the Authors
  • Summary
  • Preface
  • Frequently used symbols
  • 1 WHAT IS CORPORATE FINANCE?
  • 1.1 THE FINANCIAL MANAGER IS FIRST AND FOREMOST A SALESMAN . . .
  • 1.2 ... OF FINANCIAL SECURITIES . . .
  • 1.3 ... VALUED CONTINUOUSLY BY THE FINANCIAL MARKETS
  • 1.4 MOST IMPORTANTLY, HE IS A NEGOTIATOR . . .
  • 1.5 ... WHO NEVER FORGETS TO DO AN OCCASIONAL REALITY CHECK!
  • 1.6 ... HE IS ALSO NOW A RISK MANAGER
  • Section I Financial analysis
  • Part One Fundamental concepts in financial analysis
  • 2 CASH FLOW
  • 2.1 CLASSIFYING COMPANY CASH FLOWS
  • 2.2 OPERATING AND INVESTMENT CYCLES
  • 2.3 FINANCIAL RESOURCES
  • 3 EARNINGS
  • 3.1 ADDITIONS TO WEALTH AND DEDUCTIONS FROM WEALTH
  • 3.2 DIFFERENT INCOME STATEMENT FORMATS
  • 4 CAPITAL EMPLOYED AND INVESTED CAPITAL
  • 4.1 THE BALANCE SHEET: DEFINITIONS AND CONCEPTS
  • 4.2 A CAPITAL-EMPLOYED ANALYSIS OF THE BALANCE SHEET
  • 4.3 A SOLVENCY-AND-LIQUIDITY ANALYSIS OF THE BALANCE SHEET
  • 4.4 A DETAILED EXAMPLE OF A CAPITAL-EMPLOYED BALANCE SHEET
  • 5 WALKING THROUGH FROM EARNINGS TO CASH FLOW
  • 5.1 ANALYSIS OF EARNINGS FROM A CASH FLOW PERSPECTIVE
  • 5.2 CASH FLOW STATEMENT
  • 6 GETTING TO GRIPS WITH CONSOLIDATED ACCOUNTS
  • 6.1 CONSOLIDATION METHODS
  • 6.2 CONSOLIDATION-RELATED ISSUES
  • 6.3 TECHNICAL ASPECTS OF CONSOLIDATION
  • 7 HOW TO COPE WITH THE MOST COMPLEX POINTS IN FINANCIAL ACCOUNTS
  • 7.1 ACCRUALS
  • 7.2 CASH ASSETS
  • 7.3 CONSTRUCTION CONTRACTS
  • 7.4 CONVERTIBLE BONDS AND LOANS
  • 7.5 CURRENCY TRANSLATION ADJUSTMENTS
  • 7.6 DEFERRED TAX ASSETS AND LIABILITIES
  • 7.7 DILUTION PROFIT AND LOSSES
  • 7.8 FINANCIAL HEDGING INSTRUMENTS
  • 7.9 IMPAIRMENT LOSSES
  • 7.10 INTANGIBLE FIXED ASSETS
  • 7.11 INVENTORIES
  • 7.12 LEASES
  • 7.13 OFF-BALANCE-SHEET COMMITMENTS
  • 7.14 PENSIONS AND OTHER EMPLOYEE BENEFITS
  • 7.15 PREFERENCE SHARES
  • 7.16 PROVISIONS.
  • 7.17 STOCK OPTIONS
  • 7.18 TANGIBLE ASSETS
  • 7.19 TREASURY SHARES
  • Part Two Financial analysis and forecasting
  • 8 How TO PERFORM A FINANCIAL ANALYSIS
  • 8.1 WHAT IS FINANCIAL ANALYSIS?
  • 8.2 ECONOMIC ANALYSIS OF COMPANIES
  • 8.3 AN ASSESSMENT OF A COMPANY'S ACCOUNTING POLICY
  • 8.4 STANDARD FINANCIAL ANALYSIS PLAN
  • 8.5 THE VARIOUS TECHNIQUES OF FINANCIAL ANALYSIS
  • 8.6 RATINGS
  • 8.7 SCORING TECHNIQUES
  • 8.8 EXPERT SYSTEMS
  • 9 MARGIN ANALYSIS: STRUCTURE
  • 9.1 How OPERATING PROFIT IS FORMED
  • 9.2 How OPERATING PROFIT IS ALLOCATED
  • 9.3 STANDARD INCOME STATEMENTS (INDIVIDUAL AND CONSOLIDATED ACCOUNTS)
  • 9.4 FINANCIAL ASSESSMENT
  • 9.5 CASE STUDY: ARCELORMITTAL
  • 10 MARGIN ANALYSIS: RISKS
  • 10.1 HOW OPERATING LEVERAGE WORKS
  • 10.2 A MORE REFINED ANALYSIS PROVIDES GREATER INSIGHT
  • 10.3 FROM ANALYSIS TO FORECASTING: THE CONCEPT OF NORMATIVE MARGIN
  • 10.4 CASE STUDY: ARCELORMITTAL
  • 11 WORKING CAPITAL AND CAPITAL EXPENDITURES
  • 11.1 THE NATURE OF WORKING CAPITAL
  • 11.2 WORKING CAPITAL TURNOVER RATIOS
  • 11.3 READING BETWEEN THE LINES OF WORKING CAPITAL
  • 11.4 ANALYSING CAPITAL EXPENDITURES (CAPEX)
  • 11.5 CASE STUDY: ARCELORMITTAL
  • 12 FINANCING
  • 12.1 A DYNAMIC ANALYSIS OF THE COMPANY'S FINANCING
  • 12.2 A STATIC ANALYSIS OF THE COMPANY'S FINANCING
  • 12.3 CASE STUDY: ARCELORMITTAL
  • 13 RETURN ON CAPITAL EMPLOYED AND RETURN ON EQUITY
  • 13.1 ANALYSIS OF CORPORATE PROFITABILITY
  • 13.2 LEVERAGE EFFECT
  • 13.3 USES AND LIMITATIONS OF THE LEVERAGE EFFECT
  • 13.4 CASE STUDY: ARCELORMITTAL
  • 14 CONCLUSION OF FINANCIAL ANALYSIS
  • 14.1 SOLVENCY
  • 14.2 VALUE CREATION
  • 14.3 FINANCIAL ANALYSIS WITHOUT THE RELEVANT ACCOUNTING DOCUMENTS
  • 14.4 CASE STUDY: ARCELORMITTAL
  • Section II Investors and markets
  • Part One Investment decision rules
  • 15 THE FINANCIAL MARKETS
  • 15.1 THE RISE OF CAPITAL MARKETS.
  • 15.2 THE FUNCTIONS OF A FINANCIAL SYSTEM
  • 15.3 THE RELATIONSHIP BETWEEN BANKS AND COMPANIES
  • 15.4 THEORETICAL FRAMEWORK: EFFICIENT MARKETS
  • 15.5 ANOTHER THEORETICAL FRAMEWORK UNDER CONSTRUCTION: BEHAVIOURAL FINANCE
  • 15.6 INVESTORS' BEHAVIOUR
  • 16 THE TIME VALUE OF MONEY AND NET PRESENT VALUE
  • 16.1 CAPITALISATION
  • 16.2 DISCOUNTING
  • 16.3 PRESENT VALUE AND NET PRESENT VALUE OF A FINANCIAL SECURITY
  • 16.4 WHAT DOES NET PRESENT VALUE DEPEND ON?
  • 16.5 SOME EXAMPLES OF SIMPLIFICATION OF PRESENT VALUE CALCULATIONS
  • 17 THE INTERNAL RATE OF RETURN
  • 17.1 How IS INTERNAL RATE OF RETURN DETERMINED?
  • 17.2 INTERNAL RATE OF RETURN AS AN INVESTMENT CRITERION
  • 17.3 THE LIMITS OF THE INTERNAL RATE OF RETURN
  • 17.4 SOME MORE FINANCIAL MATHEMATICS: INTEREST RATE AND YIELD TO MATURITY
  • Part Two The risk of securities and the required rate of return
  • 18 RISK AND RETURN
  • 18.1 SOURCES OF RISK
  • 18.2 RISK AND FLUCTUATION IN THE VALUE OF A SECURITY
  • 18.3 TOOLS FOR MEASURING RETURN AND RISK
  • 18.4 MARKET AND SPECIFIC RISK
  • 18.5 THE BETA COEFFICIENT
  • 18.6 PORTFOLIO RISK
  • 18.7 CHOOSING AMONG SEVERAL RISKY ASSETS AND THE EFFICIENT FRONTIER
  • 18.8 CHOOSING BETWEEN SEVERAL RISKY ASSETS AND A RISK-FREE ASSET: THE CAPITAL MARKET LINE
  • 18.9 How PORTFOLIO MANAGEMENT WORKS
  • 19 THE REQUIRED RATE OF RETURN
  • 19.1 RETURN REQUIRED BY INVESTORS: THE CAPM
  • 19.2 PROPERTIES OF THE CAPM
  • 19.3 LIMITS OF THE CAPM
  • 19.4 MULTIFACTOR MODELS
  • 19.5 FRACTALS AND OTHER LEADS
  • 19.6 TERM STRUCTURE OF INTEREST RATES
  • Part Three Financial securities
  • 20 BONDS
  • 20.1 BASIC CONCEPTS
  • 20.2 THE YIELD TO MATURITY
  • 20.3 FLOATING-RATE BONDS
  • 20.4 SOCIALLY RESPONSIBLE BONDS
  • 20.5 THE VOLATILITY OF DEBT SECURITIES
  • 20.6 DEFAULT RISK AND THE ROLE OF RATING
  • 20.6 DEFAULT RISK AND THE ROLE OF RATING
  • 21 OTHER DEBT PRODUCTS.
  • 21.1 MARKETABLE DEBT SECURITIES
  • 21.2 BANK DEBT PRODUCTS
  • 21.3 FINANCING LINKED TO AN ASSET OF THE FIRM
  • 22 SHARES
  • 22.1 BASIC CONCEPTS
  • 22.2 MULTIPLES
  • 22.3 KEY MARKET DATA
  • 22.4 How TO PERFORM A STOCK MARKET ANALYSIS
  • 22.5 ADJUSTING PER SHARE DATA FOR TECHNICAL FACTORS
  • 23 OPTIONS
  • 23.1 DEFINITION AND THEORETICAL FOUNDATION OF OPTIONS
  • 23.2 MECHANISMS USED IN PRICING OPTIONS
  • 23.3 ANALYSING OPTIONS
  • 23.4 PARAMETERS TO VALUE OPTIONS
  • 23.5 METHODS FOR PRICING OPTIONS
  • 23.6 TOOLS FOR MANAGING AN OPTIONS POSITION
  • 24 HYBRID SECURITIES
  • 24.1 WARRANTS
  • 24.2 CONVERTIBLE BONDS
  • 24.3 PREFERENCE SHARES
  • 24.4 OTHER HYBRID SECURITIES
  • 25 SELLING SECURITIES
  • 25.1 GENERAL PRINCIPLES IN THE SALE OF SECURITIES
  • 25.2 INITIAL PUBLIC OFFERINGS
  • 25.3 CAPITAL INCREASES
  • 25.4 BLOCK TRADES OF SHARES
  • 25.5 BONDS
  • 25.6 CONVERTIBLE AND EXCHANGEABLE BONDS
  • 25.7 SYNDICATED LOANS
  • Section III Value
  • 26 VALUE AND CORPORATE FINANCE
  • 26.1 THE PURPOSE OF FINANCE IS TO CREATE VALUE
  • 26.2 VALUE CREATION AND MARKETS IN EQUILIBRIUM
  • 26.3 VALUE AND ORGANISATION THEORIES
  • 26.4 How CAN WE CREATE VALUE?
  • 26.5 VALUE AND TAXATION
  • 27 MEASURING VALUE CREATION
  • 27.1 OVERVIEW OF THE DIFFERENT CRITERIA
  • 27.2 NPV, THE ONLY RELIABLE CRITERION
  • 27.3 FINANCIAL/ACCOUNTING CRITERIA
  • 27.4 MARKET CRITERIA
  • 27.5 ACCOUNTING CRITERIA
  • 27.6 PUTTING THINGS INTO PERSPECTIVE
  • 28 INVESTMENT CRITERIA
  • 28.1 THE PREDOMINANCE OF NPV AND THE IMPORTANCE OF IRR
  • 28.2 THE MAIN LINES OF REASONING
  • 28.3 WHICH CASH FLOWS ARE IMPORTANT?
  • 28.4 OTHER INVESTMENT CRITERIA
  • 29 THE COST OF CAPITAL
  • 29.1 THE COST OF CAPITAL AND THE RISK OF ASSETS
  • 29.2 ALTERNATIVE METHODS FOR ESTIMATING THE COST OF CAPITAL
  • 29.3 SOME PRACTICAL APPLICATIONS
  • 29.4 CAN CORPORATE MANAGERS INFLUENCE THE COST OF CAPITAL?.
  • 30 RISK AND INVESTMENT ANALYSIS
  • 30.1 ASSESSING RISK THROUGH THE BUSINESS PLAN
  • 30.2 ASSESSING RISK THROUGH A MATHEMATICAL APPROACH
  • 30.3 THE CONTRIBUTION OF REAL OPTIONS
  • 31 VALUATION TECHNIQUES
  • 31.1 OVERVIEW OF THE DIFFERENT METHODS
  • 31.2 VALUATION BY DISCOUNTED CASH FLOW
  • 31.3 MULTIPLE APPROACH OR PEER-GROUP COMPARISONS
  • 31.4 THE SUM-OF-THE-PARTS METHOD (SOTP) OR NET ASSET VALUE (NAV)
  • 31.5 COMPARISON OF VALUATION METHODS
  • 31.6 PREMIUMS AND DISCOUNTS
  • Section IV Corporate financial policies
  • Part One Capital structure policies
  • 32 CAPITAL STRUCTURE AND THE THEORY OF PERFECT CAPITAL MARKETS
  • 32.1 THE VALUE OF CAPITAL EMPLOYED
  • 32.2 DEBT AND EQUITY
  • 32.3 WHAT OUR GRANDPARENTS THOUGHT
  • 32.4 THE CAPITAL STRUCTURE POLICY IN PERFECT FINANCIAL MARKETS
  • 33 CAPITAL STRUCTURE, TAXES AND ORGANISATION THEORIES
  • 33.1 THE BENEFITS OF DEBT OR THE TRADE-OFF MODEL
  • 33.2 DEBT TO CONTROL MANAGEMENT
  • 33.3 SIGNALLING AND DEBT POLICY
  • 33.4 INFORMATION ASYMMETRIES AND THE PECKING ORDER THEORY
  • 34 DEBT, EQUITY AND OPTIONS THEORY
  • 34.1 ANALYSING THE FIRM IN LIGHT OF OPTIONS THEORY
  • 34.2 CONTRIBUTION OF OPTIONS THEORY TO THE VALUATION OF EQUITY
  • 34.3 USING OPTIONS THEORY TO ANALYSE A COMPANY'S FINANCIAL DECISIONS
  • 34.4 RESOLVING CONFLICTS BETWEEN SHAREHOLDERS AND CREDITORS
  • 34.5 ANALYSING THE FIRM'S LIQUIDITY
  • 34.6 CONCLUSION
  • 35 WORKING OUT DETAILS: THE DESIGN OF THE CAPITAL STRUCTURE
  • 35.1 THE MAJOR CONCEPTS
  • 35.2 How TO CHOOSE A CAPITAL STRUCTURE
  • 35.3 EFFECTS OF THE FINANCING CHOICE ON ACCOUNTING AND FINANCIAL CRITERIA
  • Part Two Equity capital
  • 36 RETURNING CASH TO SHAREHOLDERS
  • 36.1 REINVESTED CASH FLOW AND THE VALUE OF EQUITY
  • 36.2 INTERNAL FINANCING AND FINANCIAL CRITERIA
  • 36.3 WHY RETURN CASH TO SHAREHOLDERS?
  • 37 DISTRIBUTION IN PRACTICE: DIVIDENDS AND SHARE BUY-BACKS
  • 37.1 DIVIDENDS.
  • 37.2 EXCEPTIONAL DIVIDENDS, SHARE BUY-BACKS AND CAPITAL REDUCTION.

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