Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Save to My Library
Look up keyword or section
Like this

Table Of Contents

1. Introducing Finance
1.1 The Stuff of Finance
1.2 The Firm
1.2.1 What is a firm?
1.2.2 The objective of the firm Profit maximisation or wealth maximisation?
1.3 Corporate Structure
1.3.1 Sole proprietorship
1.3.2 Partnership
1.3.3 Limited companies
1.4 The Finance Function
1.5.2 Management goals
1.5.3 Shareholders’ goals
1.5.4 Bondholders’ goals
1.5.5 Other stakeholders’ goals
1.5.6 In summary
1.6 Finance versus Accounting
2. The Financial Environment
2.1 Macroeconomics and Finance
2.2 The Financial System: Markets and Institutions
2.2.1 Types of financial market
2.2.2 Efficient markets
2.3 Investment and Finance
2.4 Accounting for Finance
2.4.1 The balance sheet
2.4.2 The income statement
2.4.3 The cash flow statement
2.5 Taxation and Inflation
2.5.1 Personal taxation
2.5.2 Capital gains tax
2.5.3 Corporation tax
2.5.5 Inflation
Appendix: Sources of Financial Information
Traditional “print” media
Online and broadcast media
America Online, the Motley Fool and more
3. Value: Finance Foundations
3.1 What Is Value?
3.2 The Time Value of Money I: Simple Interest
3.3 Simple Interest: Applications
3.3.1 Term loans
3.3.2 Discount claims
3.3.3 Yield-quoted instruments
3.4 The Time Value of Money II: Compound Interest
3.4.1 The mechanics of compound interest
3.4.2 Comparing simple and compound interest
3.4.3 Annuities
3.5 Net Present Value and Internal Rate of Return
3.5.1 Net Present Value
3.5.2 “Special” cashflow streams
3.5.3 The Internal Rate of Return (IRR)
4. Sources of Finance: Debt
4.1 What is debt?
4.2 Debt valuation
4.3 Not-quite-debt: hybrids
4.4 Interest rate determination
4.5 The Term Structure of Interest Rates
4.5.1 The Expectations Hypothesis
4.5.2 Liquidity Preference
4.5.4 Clientele effect
4.5.5 Afterthoughts
Appendix: Notes on Debt Sources
Short- and Medium-Term Debt
5.2 Ordinary Shares (or Stock)
5.3 Preference Shares
5.4 Other Points of Note
5.5 Raising Equity Capital
5.6 Equity Valuation
5.8 Not-quite-equity: Options
6. Investment Appraisal: Capital Budgeting
6.1 Investment Projects
6.2 Cashflows
6.3 Investment Appraisal: Basic (Non-DCF) Methods
6.3.1 The payback period
6.3.2 The finite horizon criterion
6.3.3 Accounting Rate of Return
6.3.4 Profitability index
6.4.1 Net Present Value
6.4.2 Internal Rate of Return (IRR)
6.4.3 Capital rationing
6.5 Comparison of NPV with IRR
6.5.1 Number of solutions
6.5.2 Scale and duration
6.7 Real and nominal values
6.8 Sensitivity and Scenario Analysis
6.8.1 Sensitivity analysis
6.8.2 Scenario analysis
6.9 Newer Approaches to Capital Budgeting
7. Investment Appraisal: Risk
7.1 Risk and Return
7.1.1 Yield (or expected return)
7.1.2 Risk and uncertainty
7.1.2 Risk and probability
7.2 Portfolio theory: The Markowitz Approach
7.2.1 Portfolio returns
7.2.2 Portfolio risk
7.3 Market Risk
7.3.1 The beta coefficient (β)
7.4 The Capital Asset Pricing Model (CAPM)
7.4.1 Value additivity
7.5 Arbitrage Pricing Theory
8. The Cost of Capital
8.1 Overview
8.2 Sources of Capital
8.3 The Cost of Debt
8.4 The Cost of Equity
8.5 Other Costs of Capital
8.5.1 The cost of retained earnings
8.5.2 The cost of preference shares
8.6 The Total Cost of Capital
9. The Capital Structure Conundrum
9.1 Value maximisation
9.2 The “Traditional” View
9.3 Modigliani and Miller (1958)
9.3.1 Criticisms of Modigliani and Miller
9.3.2 MM Modifications
9.4 A Final Thought
10. Extending the Focus: Some Applications
10.1 Valuation of the Firm
10.1.1 Free cash flows
10.1.2 EVA and MVA
10.2.3 Merger evaluation
10.3 Pensions
10.3.1 FRS 17
10.4 Finance in the International Arena
10.5 The Limitations of Finance
0 of .
Results for:
No results containing your search query
P. 1


Ratings: (0)|Views: 806 |Likes:
Published by cristinarosoiu

More info:

Published by: cristinarosoiu on Jan 28, 2011
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





You're Reading a Free Preview
Pages 5 to 29 are not shown in this preview.
You're Reading a Free Preview
Pages 34 to 107 are not shown in this preview.
You're Reading a Free Preview
Pages 112 to 118 are not shown in this preview.
You're Reading a Free Preview
Page 123 is not shown in this preview.
You're Reading a Free Preview
Pages 128 to 243 are not shown in this preview.

Activity (30)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
jorgemachigue liked this
妮宝 yennee liked this
mounirs719883 liked this
miguel8blanco liked this
decon3 liked this
Youngtae Kim liked this
kidalive liked this

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->