Essentials of Corporate Financial Management: With Companion Website With Gradetracker Student Access Card

Were you looking for the book with access to MyFinanceLab? This product is the book alone, and does NOT come with access to MyFinanceLab. Buy Essentials of Corporate Financial Management with MyFinanceLab access card, 2/e ( ISBN 9780273759027) if you need access to the MyLab as well, and save money on this brilliant resource. Essentials of Corporate Financial Management supports courses designed to cover the core topics of finance in 15 to 30 hours of lectures. The book is suitable for undergraduate students studying finance as part of a business related degree, MBA students, and others studying finance at business schools. It also provides the foundation elements needed by students going on to study more advanced finance. The step-by-step learning approach enables students to achieve a high level of financial knowledge without assuming a prior knowledge of finance. Selected core topics and key concepts are delivered with depth, allowing students to gain an understanding of the topical debates within this field, where disagreement or alternative perspectives lead to lively discussion. Need extra support? This title can be supported by MyFinanceLab, an online homework and tutorial system which can be used by students for self-directed study or fully integrated into an instructor's course. This product is the book alone, and does NOT come with access to MyFinanceLab. You can benefit from MyFinanceLab by speaking to your local Pearson Account Manager about setting up a version that is customised to suit your course via www.pearsoned.co.uk/replocator For educator access, contact your Pearson Account Manager. To find out who your account manager is, visit www.pearsoned.co.uk/replocator Cover Contents Guided tour Guided tour of MyFinanceLab Preface Acknowledgements 1 The financial world Learning outcomes Introduction What is corporate finance? A simple model of the interactions between the financial manager and the capital markets The flow of funds and financial intermediation The financial system The objective of the firm Ownership and control Concluding comments Key points and concepts Further reading Websites Case study recommendations Self-review questions Questions and problems Assignments 2 Project appraisal: Net present value and internal rate of return Learning outcomes Introduction Value creation and corporate investment Net present value and internal rate of return Concluding comments Key points and concepts Appendix 2.1 Mathematical tools for finance Mathematical tools exercises Websites Case study recommendations Self-review questions Questions and problems Assignments 3 Practical project appraisal Learning outcomes Introduction Quality of information Are profit calculations useful for estimating project viability? Evidence on the employment of appraisal techniques Payback Accounting rate of return Internal rate of return: reasons for continued popularity The managerial art of investment appraisal The investment process Capital rationing Taxation and investment appraisal Inflation Concluding comments Key points and concepts Further reading Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 4 Risk and project appraisal Learning outcomes Introduction What is risk? Adjusting for risk through the discount rate Sensitivity analysis Scenario analysis Probability analysis The risk of insolvency Problems in using probability analysis Evidence of risk analysis in practice Real options (managerial options) Concluding comments Key points and concepts Further reading Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 5 Portfolio theory and the capital asset pricing model Learning outcomes Introduction Holding period returns Expected return and standard deviation for shares Combinations of investments Portfolio expected return and standard deviation Diversification Some fundamental ideas and problems Systematic risk The Security Market Line (SML) Risk premiums across the world Estimating some expected returns Calculating beta Applications of the CAPM Accepted theory and controversial theory Technical problems with the CAPM Does the CAPM work in practice? Factor models Fundamental beta Concluding comments Key points and concepts Further reading Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 6 Equity capital Learning outcomes Introduction What is equity capital? Preference shares The London Stock Exchange Floating on the Main Market (Official List) Methods of issue The Alternative Investment Market (AIM) TechMARK PLUS-quoted shares The ownership of UK quoted shares Rights issues Other equity issues Equity finance for unquoted firms Disillusionment and dissatisfaction with quotation The efficient market hypothesis Understanding the figures in the financial pages Concluding comments Key points and concepts Further reading Websites Case study recommendations Self-review questions Questions and problems Assignments 7 Debt finance Learning outcomes Introduction Some fundamental features of debt finance Bonds Bank borrowing Syndicated loans Credit rating Mezzanine debt and high-yield (junk) bonds Convertible bonds Valuing bonds Trade credit Factoring Hire purchase Leasing International sources of debt finance Medium-term notes Commercial paper The term structure of interest rates Is it better to borrow long or short? Concluding comments Key points and concepts Further reading Websites Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 8 The cost of capital Learning outcomes Introduction A word of warning The required rate of return The weighted average cost of capital (WACC) The cost of equity capital The cost of retained earnings The cost of debt capital The cost of preference share capital Hybrid securities Calculating the weights Applying the WACC to projects and SBUs Empirical evidence of corporate practice How large is the equity risk premium? Some thoughts on the cost of capital Concluding comments Key points and concepts Further reading Websites Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 9 Value-based management Learning outcomes Introduction The pervasiveness of the value approach Confusing objectives Three steps of value Earning-based management How a business creates value Using value principles in strategic business unit management The impact of value principles on corporate strategy Value-creation metrics Using cash flow to measure value Shareholder value analysis Economic profit Economic value added (EVA®) Total shareholder return (TSR) Market value added (MVA) Concluding comments Key points and concepts Further reading Website Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 10 Valuing shares and companies Learning outcomes Introduction The two skills Valuation using net asset value (NAV) Valuation using income-flow models Dividend valuation models The price–earnings ratio (PER) model Valuation using cash flow Valuation using owner earnings EBITDA Valuing unquoted shares Managerial control and valuation Concluding comments Key points and concepts Further reading Websites Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 11 Capital structure Learning outcomes Introduction Debt finance is cheaper and riskier (for the company) What do we mean by ‘gearing’? The effect of gearing The value of the firm and the cost of capital Does the cost of capital (WACC) decrease with higher debt levels? Modigliani and Miller’s argument in a world with no taxes The assumptions The capital structure decision in a world with tax Additional considerations Some further thoughts on debt finance Concluding comments Key points and concepts Further reading Video presentations Case study recommendations Self-review questions Quick numerical questions Questions and problems Assignments 12 Dividend policy Learning outcomes Introduction Defining the problem Miller and Modigliani’s dividend irrelevancy proposition Dividends as a residual Clientele effects Taxation Dividends as conveyors of information Resolution of uncertainty Owner control (agency theory) Scrip dividends Share buy-backs and special dividends A round-up of the arguments Concluding comments Key points and concepts Further reading Video presentations Case study recommendations Self-review questions Questions and problems Assignment Appendices I: Future value of £1 at compound interest II: Present value of £1 at compound interest III: Present value of an annuity of £1 at compound interest IV: Future value of an annuity of £1 at compound interest V: Areas under the standardised normal distribution VI: Answers to the mathematical tools exercises in Chapter 2, Appendix 2.1 VII: Solutions to selected questions and problems Glossary A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Bibliography Index A B C D E F G H I J K L M N O P Q R S T U V W X Y Z **Were you looking for the book with access to MyFinanceLab? This product is the book alone, and does NOT come with access to MyFinanceLab. Buy __Essentials of Corporate Financial Management with MyFinanceLab access card, 2/e (__ISBN 9780273759027) if you need access to the MyLab as well, and save money on this brilliant resource.**__Essentials of Corporate Financial Management__ supports courses designed to cover the core topics of finance in 15 to 30 hours of lectures. The book is suitable for undergraduate students studying finance as part of a business related degree, MBA students, and others studying finance at business schools. It also provides the foundation elements needed by students going on to study more advanced finance. **Need extra support?**This title can be supported by MyFinanceLab, an online homework and tutorial system which can be used by students for self-directed study or fully integrated into an instructor's course. This product is the book alone, and does NOT come with access to MyFinanceLab. You can benefit from MyFinanceLab by speaking to your local Pearson Account Manager about setting up a version that is customised to suit your course via www.pearsoned.co.uk/replocator Paperback. Pub Date :2010-12-21 568 English Pearson Were you looking for the book with access to MyFinanceLab This product is the book alone. and does NOT come with access to MyFinanceLab Buy Essentials of Corporate Financial. Management with MyFinanceLab access card. 2e if you need access to the MyLab as well. and save money on this brilliant resource. Essentials of Corporate Financial Management supports courses designed to cover the core topics of finance in 15 to 30 hours of lectures. The book is suitable for undergraduate students studying finance as part of a business related degree. MBA students. and others studying finance at business schools. It also provides the foundation elements needed by students going on to study more advanced finance. The step-by-step learning approach enables students to achieve a high level of financial knowledge...