Corporate Finance and Strategy

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 Management
  • Information and Environment for Financial Management
  • Developing a Long-term Financial Plan

• Valuation Principles and Applications:

  • Present Values: Concepts and Methods
  • Valuation of Bonds and Stocks

• Capital Budgeting and Risk Return Trade-off:

  • Capital Budgeting Under Certainty
  • Risk Estimation and Diversification
  • Risk and Return Trade-off Analysis
  • Capital Budgeting Under Uncertainty

• Cost of Capital, Financing Choices, and Dividend Decisions:

  • The Cost of Capital
  • Capital Structure and Valuation
  • The Dividend Puzzle
  • Interaction of Financing, Investment, and Dividend Policies

• Long-term Financing:

  • Long-term Debt Financing
  • Common Stock, Preferred Stock, and Financing Decisions
  • Warrants and Convertible Securities
  • Leasing: Theory and Practice

• Short-term Financing and Financial Planning:

  • Short-term Financial Analysis and Planning
  • Credit Management
  • Cash, Marketable Securities, and Inventory Management
  • Financial Planning and Strategy

• Options, Futures, and Corporate Finance:

  • Options, Futures, Swaps, and Risk Management
  • Option Pricing Theory and Firm Valuation
  • Portfolio Insurance and Synthetic Options

• Other Topics:

  • Mergers and Divestitures: Theory and Evidence
  • Bankruptcy, Workouts, and Corporate Reorganization
  • International Financial Management

• Appendices:

  • Projects
  • Standard Normal Table (Z)
  • Some Useful Formulas
  • Solutions 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 strategy
• This book contains a lot of examples of real company analysis
• This book uses an interdisciplinary approach to integrate corporate finance with accounting, statistics, and Excel
• This book integrates investment analysis to teach students to analyze the fundamental value of a firm

Dettagli