Corporate financial management / / Glen Arnold

• Record Nr.: UNINA9910150228103321
• Autore: Arnold Glen
• Pubbl/distr/stampa: Harlow, : Pearson, 2013; Harlow, Eng. ; ; New York : , : Pearson Financial Times/Prentice Hall, , 2013
• ISBN: 9780273758952 (e-book); 9780273758839 (pbk.)
• Edizione: [5th ed.]
• Descrizione fisica: 1 online resource (xlii, 992 p.) : col. ill
• Disciplina: 658.15
• Soggetti: Corporations - Finance; Corporations - Finance - Management; Business enterprises - Finance; Libros electrónicos.
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Nota di bibliografia: Includes bibliographical references and index.
• Nota di contenuto: Cover -- Contents -- Topics covered in the book -- Introduction to the book -- Guided tour -- Guided tour of MyFinanceLab -- Acknowledgements -- Part 1 Introduction -- 1 The financial world -- Learning outcomes -- Introduction -- The objective of the firm -- Case study 1.1 Xstrata plc -- Some possible objectives -- Corporate governance -- Primitive and modern economies -- The role of the financial manager -- The flow of funds and financial intermediation -- Growth in the financial services sector -- The financial system -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Websites -- Self-review questions -- Questions and problems -- Assignments -- Part 2 The investment decision -- 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 -- Modified internal rate of return -- Concluding comments -- Key points and concepts -- Appendix 2.1 Mathematical tools for finance -- Mathematical tools exercises -- References and further reading -- Case study recommendations -- Websites -- Self-; review questions -- Questions and problems -- Assignments -- 3 Project appraisal: cash flow and applications -- Learning outcomes -- Introduction -- Case study 3.1 Airbus's superjumbo -- Quality of information -- Are profit calculations useful for estimating project viability? -- The replacement decision -- Replacement cycles -- When to introduce a new machine -- Drawbacks of the annual equivalent annuity method -- Timing of projects -- The make or buy decision -- Fluctuating output -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Self-review questions -- Questions and problems -- Assignments.; 4 The decision-making process for investment appraisal -- Learning outcomes -- Introduction -- 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 -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Self-review questions -- Questions and problems -- Assignments -- 5 Project appraisal: capital rationing, taxation and inflation -- Learning outcomes -- Introduction -- Capital rationing -- Taxation and investment appraisal -- Inflation -- Case study 5.1 Eurotunnel's inflation allowance -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Self-review questions -- Questions and problems -- Assignments -- Part 3 Risk and return -- 6 Risk and project appraisal -- Learning outcomes -- Case study 6.1 Two risky ventures . . . -- Introduction -- What is risk? -- Adjusting for risk through the discount rate -- Sensitivity analysis -- Scenario analysis -- Probability analysis -- The risk of insolvency -- Problems of using probability analysis -- Evidence of risk analysis in practice -- Real options (managerial options) -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Self-review questions -- Questions and problems -- Assignments -- 7 Portfolio theory -- Learning outcomes -- Introduction -- Holding period returns -- Expected return and standard deviation for shares -- Combinations of investments -- Portfolio expected return and standard deviation -- Dominance and the efficient frontier -- Indifference curves -- Choosing the optimal portfolio -- The boundaries of diversification.; Extension to a large number of securities -- Evidence on the benefits of diversification -- The capital market line -- Problems with portfolio theory -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Self-review questions -- Questions and problems -- Assignments -- 8 The Capital Asset Pricing Model and multi-factor models -- Learning outcomes -- Introduction -- Some fundamental ideas and problems -- A short history of shares, bonds and bills -- The Capital Asset Pricing Model -- Factor models -- The arbitrage pricing theory -- The three-factor model -- Fundamental beta -- Project appraisal and systematic risk -- Sceptics' views - alternative perspectives on risk -- Concluding comments -- Key points and concepts -- Appendix 8.1 Note on arithmetic and geometric means -- Appendix 8.2 Why professors do or do not use CAPM-beta -- References and further reading -- Case study recommendations -- Self-review questions -- Questions and problems -- Assignments -- Part 4 Sources of finance -- 9 Stock markets -- Learning outcomes -- Case study 9.1 Using the stock market both to create wealth and to treat disease -- Introduction -- Stock exchanges around the world -- Globalisation of financial flows -- Why do ; companies list their shares on more than one exchange? -- The importance of a well-run stock exchange -- The London Stock Exchange -- The UK equity markets available to companies -- Tasks for stock exchanges -- How stock exchanges work -- The ownership of UK shares -- Regulation -- Understanding the figures in the financial pages -- Taxation and corporate finance -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Websites -- Video presentations -- Self-review questions -- Questions and problems -- Assignments.; 10 Raising equity capital -- Learning outcomes -- Case study 10.1 To float or not to float? -- Introduction -- What is equity capital? -- Preference shares -- Some unusual types of shares -- Floating on the Main Market (Official List) -- Methods of issue -- Timetable for a new issue (initial public offering) -- How does an AIM flotation differ from one on the Official List? -- The costs of new issues -- Rights issues -- Other equity issues -- Scrip issues -- Warrants -- Equity finance for unquoted firms -- How independent private fund is established and managed -- Disillusionment and dissatisfaction with quotation -- Concluding comments -- Key points and concepts -- Appendix 10.1 Reasons for and against floating -- References and further reading -- Case study recommendations -- Websites -- Video presentations -- Self-review questions -- Questions and problems -- Assignment -- 11 Long-term debt finance -- Learning outcomes -- Introduction -- Some fundamental features of debt finance -- Bonds -- Bank borrowing -- Syndicated loans -- Credit rating -- Mezzanine finance and high-yield (junk) bonds -- Case study 11.1 The junk bond wizard: Michael Milken -- Convertible bonds -- Valuing bonds -- International sources of debt finance -- Project finance -- Sale and leaseback -- Securitisation -- Islamic banking -- The term structure of interest rates -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Websites -- Video presentations -- Self-review questions -- Questions and problems -- Assignments -- 12 Short-term and medium-term finance -- Learning outcomes -- Introduction -- Short- and medium-term bank finance -- Trade credit -- Factoring -- Case study 11.1 Prestige pet products -- Hire purchase -- Leasing -- Bills of exchange -- Acceptance credits (bank bills or banker's acceptance).; Treasury management -- Financing -- Risk management -- Working capital management -- Investment of temporary surplus funds -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Websites -- Video presentations -- Self-review questions -- Questions and problems -- Assignments -- 13 Stock market efficiency -- Learning outcomes -- Introduction -- What is meant by efficiency? -- Random walks -- The three levels of efficiency -- Weak-form tests -- Semi-strong form tests -- Strong-form tests -- Behavioural finance -- Misconceptions about the efficient market hypothesis -- Implications of the EMH for investors -- Implications of the EMH for companies -- Concluding comments -- Key points and concepts -- References and further reading -- Case study recommendations -- Self-review questions -- Questions and problems -- Assignment -- Part 5 Corporate value -- 14 Value-based management -- Learning outcomes -- Introduction -- Case study 14.1 Compass group -- The shareholder wealth-maximising goal -- Three steps of value -- Earnings-based management -- Return on capital employed (ROCE) has failings -- How a business creates value -- An overview of the application of value principles -- Strategic business unit management -- Corporate strategy -- Targets and motivation -- ; Case study 14.4 Strategy, planning and budgeting at Lloyds TSB -- Concluding comments -- Key points and concepts -- References and further reading -- Video presentations -- Case study recommendation -- Self-review questions -- Questions and problems -- Assignment -- 15 Value-creation metrics -- Learning outcomes -- Introduction -- Using cash flow to measure value -- Shareholder value analysis -- Economic profit -- Economic value added (EVA®) -- Total shareholder return (TSR) -- Wealth Added Index (WAI) -- Market Value added (MVA).; Excess return (ER).
• Sommario/riassunto: Explore how finance theory works in practice with Corporate Financial Management, 5th edition. Find out how financial decisions are made within a firm, how projects are appraised to make investment decisions, how to evaluate risk and return, where to raise finance from and how, ultimately, to create value.