Corporate Finance

Corporate Finance......Page 4
Summary......Page 9
The 2007–2008 crisis, or rediscovering financial risk......Page 11
Preface......Page 15
Frequently used symbols......Page 19
1 What is Corporate Finance?......Page 22
Section I Financial Analysis......Page 36
Part One Fundamental Concepts in Financial Analysis......Page 38
2 Cash Flows......Page 40
3 Earnings......Page 50
4 Capital Employed and Invested Capital......Page 66
5 Walking through from Earnings to Cash Flow......Page 79
6 Getting to Grips with Consolidated Accounts......Page 95
7 How to Cope with the most Complex Points in Financial Accounts......Page 115
Part Two Financial Analysis and Forecasting......Page 140
8 How to Perform a Financial Analysis......Page 142
9 Margin Analysis: Structure......Page 175
10 Margin Analysis: Risks......Page 199
11 Working Capital and Capital Expenditures......Page 214
12 Financing......Page 237
13 Return on Capital Employed and Return on Equity......Page 251
14 Conclusion of Financial Analysis......Page 272
Section II Investment Analysis......Page 278
Part One Investment Decision Rules......Page 280
15 The Financial Markets......Page 282
16 The Time Value of Money and Net Present Value......Page 310
17 The Internal Rate of Return......Page 329
18 Incremental Cash Flows and Other Investment Criteria......Page 347
19 Measuring Value Creation......Page 365
20 Risk and Investment Analysis......Page 388
Part Two The Risk of Securities and the Cost of Capital......Page 406
21 Risk and Return......Page 408
22 The Cost of Equity......Page 441
23 From the Cost of Equity to the Cost of Capital......Page 468
24 The Term Structure of Interest Rates......Page 488
Part Three Financial Securities......Page 500
25 Bonds......Page 502
26 Other Debt Products......Page 528
27 Shares......Page 548
28 Options......Page 568
29 Hybrid Securities......Page 590
30 Selling Securities......Page 614
Section III Corporate Financial Policies......Page 646
Part One Value......Page 648
31 Value and Corporate Finance......Page 650
32 Valuation Techniques......Page 670
Part Two Capital Structure Policies......Page 700
33 Capital Structure and the Theory of Perfect Capital Markets......Page 702
34 The Tradeoff Model......Page 714
35 Debt, Equity and Options Theory......Page 742
36 Working out Details: The Design of the Capital Structure......Page 760
Part Three Equity Capital and Dividends......Page 794
37 Internal Financing: Reinvesting Cash Flow......Page 796
38 Returning Cash to Shareholders: Dividend Policies......Page 809
39 Capital Increases......Page 836
Section IV Financial Management......Page 852
Part One Corporate Governance and Financial Engineering......Page 854
40 Choice of Corporate Structure......Page 856
41 Corporate Governance......Page 883
42 Taking Control of a Company......Page 897
43 Mergers and Demergers......Page 920
44 Leveraged Buyouts (LBOs)......Page 938
45 Bankruptcy and Restructuring......Page 952
Part Two Managing Cash Flows and Financial Risks......Page 966
46 Managing Cash Flows......Page 968
47 Managing Financial Risks......Page 987
Glossary......Page 1013
Contents......Page 1022
Index......Page 1030
Vernimmen.com......Page 1058
Cribsheet......Page 1059