Other versions of Corporate Finance

Book title: Corporate Finance - Theory and Practice (American MBA Finance Textbook Series)

ISBN: 730003893

Author: Eisworth﹒ Damodren

Publisher: China Renmin University Press

Price: 79

Number of pages: 0

Publication date: 2001-12-1

Edition: 1

Form: 16

Packaging: Flat

Introduction: Foreword by the translator of this book

In the past 40 years, corporate finance has evolved from a simple description of financial status to a systematic elaboration of financial theory and practice. Currently, corporate finance continues to develop rapidly, with changes in the economic environment and innovations in financial theory and practice happening almost every day. How can you cope with the rapid changes in corporate finance? The answer lies in the company's financial development itself. It is necessary to explore the simple description of the past and form a rational understanding, so that when inevitable changes occur, correct decisions can be made in the new situation based on the changes that have occurred.

The book "Corporate Finance - Theory and Practice" is compiled by the famous American financial expert Aisworth Damodren. The valuable thing about this book is that it organically combines the systematic theory and practice of corporate finance. Because only with a systematic and profound financial theory can we succeed in specific financial practices and achieve maximum benefits. Looking at the whole book, this book has the following characteristics:

1. Content-rich system

In this book, the author designs the company's financial foundation, values, capital structure and dividend policy, capital budgeting, long-term financing, company management, etc. based on the internal logical relationship between corporate finance theory and practice. Related articles. It includes all aspects of the company's financial management under the going concern state, as well as financial management issues such as corporate bankruptcy, reorganization, liquidation, mergers, acquisitions, etc. under the non-going concern state.

2. Comprehensive research results

This book absorbs a large number of the latest financial research results. For example: Miller-Modiglini's capital cost theory, dividend theory and stock value model, Eugene F. Fama's capital market efficiency theory, capital asset pricing model, risk-adjusted discount rate and uncertainty. Capital budgeting; Harry M. Markowitz's portfolio theory, and more. While absorbing these research results, the author also gives his own valuable innovative ideas.

3. Novel style design

Currently, the training programs of business schools or management schools in the United States are undergoing or have completed curriculum changes. These changes are usually the integration of materials from different disciplines and collaborative teaching. This new environment prompts us to rethink and change our approach to teaching corporate finance.

This book actively explores the reform of financial teaching in the design of style. Each chapter begins with the learning purpose of the chapter, followed by the content of each section, each section is equipped with thinking questions; there is a summary at the end of each chapter; and a large number of exercises are attached after each chapter. This style design reflects the reform and development trend of financial teaching. It is conducive to teachers' teaching and students' self-study, and is conducive to cultivating students' theoretical foundation and practical skills.

This book can be called a model of financial management textbook, and can be used as a core financial textbook for postgraduate students in business management, corporate finance, accounting, finance and other majors in colleges and universities or as an advanced financial textbook for undergraduates. The textbook can also be used as a reference book for practitioners in related professions.

The translation of this book was organized by Jing Xia, and the participants in the translation were: Liu Wenxiao, Song Guohua, Zeng Liwei, Gong Xiuyin, Deng Xia, and Xie Ning. Jing Xia, Liu Wenxiao, Zeng Liwei, and Song Guohua participated in the review. Finally, Jing Xia read through the entire manuscript and unified the style and terminology of the entire book.

In the process of translating this book, we have carefully considered the relevant content and carefully reviewed each chapter. However, due to the translator's limited skills and time, there may still be some omissions or even errors in the book. , please readers to criticize and correct.

Contents:

Chapter 1 Introduction to Corporate Finance

Chapter 1 Introduction to Corporate Finance

What is Corporate Finance

The company's objective function

Company financial decision-making, company value and equity value

Necessary tools for corporate finance

Company finance general flow chart

Some basic propositions about corporate finance

Chapter 2 Corporate Financial Objective Function

The necessity of establishing an objective function

The correct objective function Characteristics

Classic objective function

Some problems in the real world

Maximizing shareholder wealth, subject to

Postscript - Company Limitations of Finance

Chapter 3 Present Value

Timeline and Symbols

Intuitive Basis of Present Value

Present Value Mechanism

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Chapter 4 Understanding Financial Statements

Main Financial Statements

Financial Ratios

Other Issues in Financial Statement Analysis

Chapter 5 Risk and Return Theory

Components of a good risk-return model

General model of risk-return

Comparative analysis of risk-return models

Default Risk Model

Chapter 6 Application of Risk-Return Model: Discount Rate Estimation

Cost of Equity

Weighted Average Cost of Capital

Comprehensive analysis of risks, returns and financing costs - Boeing Company and Family Department Stores

Part 2 Investment Analysis

Chapter 7 Capital Budget Decision-Making Method

What is an investment project

Types of investment decisions

Methods of investment decision-making

About investment decision-making methods

Classification of decision-making methods

What methods do companies use for investment analysis

Chapter 8 Estimating cash flows and

The composition of cash flows in a project

Cash The first principle of flow estimation

Cash flow should be after-tax cash flow

Cash flow should be incremental cash flow

The estimation of cash flow should be consistent with the actual situation Consistent

Chapter 9 Some Issues in Capital Budgeting

Capital Allocation

Competing Projects

Other Investment Decision Methods< /p>

Consider the impact of interactions between projects

Chapter 10 Uncertainty and Risk in Capital Budgeting

Basic Methods for Uncertainty Analysis

p>

Probabilistic analysis methods for risk analysis

Sensitivity analysis

Break-even analysis

Perspective profile analysis

Simulation

Decision Tree

Chapter 11 Uncertainty and Risk in Capital Budgeting

Project Risk Analysis

Measuring Project Risk< /p>

Risk Adjustment Investment Analysis

Risk Adjustment Practice

Common Mistakes in Project Risk Assessment

Chapter 12 Investment Analysis Organization Management and Follow-up Analysis

Where good projects come from

Common mistakes in investment analysis

Investment analysis organization management

Follow-up analysis of investment analysis

Chapter 13 Leasing Decisions

Types of Leases

Lease Accounting

Reason for Leasing

Leases and Purchases--From Lessee’s Perspective

Lease and Purchase – From Lessor’s Perspective

Chapter 14 Working Capital: Investment Decisions and Financing

Working Capital Basics Contents

Current Asset Management

Accounts Receivable Management and Short-Term Financing

Part 3 Financial Decisions

Chapter 15 Capital Structure --Overview of financing methods

Alternative financing methods

Equity

Liabilities

Hybrid securities

Review of historical experience: How companies raise funds

Selection of company financing methods

Chapter 16 The impact of market efficiency on corporate finance

What is efficient

Markets

Market efficiency relative to prices

Information efficiency

Market reactions to securities issuances

Equity research analysts and bond rating agencies The impact of debt

Chapter 17 Capital Structure - Cost-Benefit Analysis

The benefits of liabilities

The cost of liabilities

Based on the balance sheet Cost-benefit analysis in the form of cost-benefit analysis

There is no optimal capital structure--Miller-Modiglini theorem

There is an optimal capital structure

How should a company choose capital structure

Chapter 18 Capital Structure--Model and Application

Operating Income Method

Capital Cost Method

< p>Practical Application of Capital Cost Method

Investment Return Difference Method

Present Value Adjustment Method

Comparative Analysis Method

Chapter 19 Capital structure - analysis of specific issues

Capital structure adjustment

Rapid or gradual adjustment

The process of capital structure adjustment

Financing specifics Problem Analysis

Analysis of Specific Financing Problems of Boeing Company

Part 4 Dividend Decision

Chapter 20 Determinants of Dividend Policy

With Ways to return cash to shareholders

Historical review of dividend distribution

Differences in dividend policies across countries

Dividend payment background and dividend policy

What Timely payment of dividends has nothing to do with the value of the company

Dividend taxation

Uncertain motivations for dividend distribution

Benefits of dividend distribution

Shareholders, Creditors and Dividend Distribution

Shareholders, Operators and Dividend Distribution

Chapter 21 Analytical Framework of Dividend Policy

Overview

Adverse Investment Projects and low dividend distribution policies

Favorable investment projects and low dividend distribution policies

Unfavorable investment projects and high dividend policy combinations

Others of dividend policy analysis Alternative methods

Chapter 22 Research on the way companies return shareholders Forward contracts

Stock dividends and stock splits

Divestitures, corporate spin-offs, capital transfers and capital splits

Alternatives

Dividend Policy Change Planning

Part 5 Evaluation

Chapter 23 Basic Principles of Evaluation

Evaluation Method

Discounted Cash Flow Analysis

Equity Valuation Model

Applications and Limitations of Discounted Cash Flow Models

Related Assessments

Applications and Limitations of Parameters

Chapter 24 Management Decision-making, Corporate Strategy and Corporate Value

Corporate Value and Corporate Decision-making

Corporate Reorganization and Corporate Value

Chapter 25 Acquisitions and Mergers

Classifications of Mergers

Motivations for Acquisitions

A Historical Review of Mergers and Acquisitions

Evidence on the Value Impact of Acquisitions

p>

Evaluating Synergies

The Value of Corporate Control

Evaluating Leveraged Buyouts

Evaluating Acquisitions: Bias and Common Mistakes

Chapter 6 Other Tools and Technologies

Chapter 26 International Financing

Why exchange rates change

Exchange rate risks

Abroad Investment analysis of projects

Mixed financing of foreign projects

Chapter 27 Option Pricing Theory

What is an option

Determination of option value Factors

Option Value Model

Chapter 28 Application of Option Pricing Theory in Corporate Finance

Notes on Applying Option Pricing Model

Options in capital budgeting

Pricing equity as options

Option pricing in capital structure and dividend policy decisions

Chapter 29 Risk Management

Definition and classification of risks faced by the company

Measuring risks

Benefits of risk management

Selecting Risk Management Products

Risk Management in Practice

Chapter 30 Corporate Finance of Private Companies

Private Companies and Public Companies

Investment Analysis

Capital Structure Decision

Dividend Policy

Evaluation

Chapter 31 Review

Principles of corporate finance

Comprehensive corporate financial analysis

Comprehensive case: Hershey Food Company

Reference answers