Corporate finance for dummies

Taillard, Michael

Corporate finance for dummies - 2nd - New Delhi Wiley India Pvt. Ltd. 2022 - xv, 342 p.

Table of content:
Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

New to this Edition

Beyond the Book

Where to Go from Here

Part 1: What's Unique about Corporate Finance

Chapter 1: The Tale of Corporate Finance

Telling a Story with Numbers
Characterizing Motivations
The role of financial institutions
Defining investing
Setting the Stage


Chapter 2: Introducing Finance Land

Visiting the Main Attractions in Finance Land
Corporations
Depository institutions
Insurance companies
Securities firms
Underwriters
Funds
Financing institutions
Exchanges
Regulatory bodies
Federal Reserve and U.S Treasury
Getting a Job in Finance Land
Accounts payable and/or receivable
HR and payroll
Analysts
Auditors
Adjusters
Bookkeepers and accountants
Modelers and scientists
Economists and consultants
Traders
Treasurers
Bankers and more
Visiting the Finance Land Information Center
Internet sources
Print sources
Human sources
Chapter 3: Pitching Your Story for Money

Raising Capital
Diving into Debt
Asking the right people for money
Making sure the loan pays off in the long run
Looking at loan terms
Schmoozing Investors
Selling stock to the public
Looking at the different types of stock
Having Your Wish Granted
Part 2: Making a Statement

Chapter 4: Staying Balanced

Introducing the Balance Sheet
Evaluating the Weights on the Balance Scale
Understanding Assets
Current assets
Long-term assets
Intangible assets
Other assets
Learning about Liabilities
Current liabilities
Long-term liabilities
Eyeing Owners' Equity
Preferred shares
Common shares
Treasury shares
Additional paid-in capital
Retained earnings
Finding Financial Zen
Chapter 5: Incoming Income

Adding It Up
Gross profit
Operating income
Earnings before interest and taxes (EBIT).
Net income
Earnings per share
Supplemental notes
Putting the Income Statement to Good Use
Chapter 6: Going with the (Cash) Flow

Moving Along Three Smooth Flows
Operating cash flows
Investing cash flows
Financing cash flows
Combining the three types of operations to get the net change in cash
Reaching Your Destination
Chapter 7: Mastering Metrics

Paying the Bills
Days sales in receivables
Accounts receivables turnover
Accounts receivables turnover in days
Days sales in inventory
Inventory turnover
Inventory turnover in days
Operating cycle
Working capital
Current ratio
Acid test ratio (aka Quick Ratio).
Cash ratio
Sales to working capital
Operating cash flows to current maturities
Working Your Assets
Net profit margin
Total asset turnover
Return on assets
Operating income margin
Operating asset turnover
Return on operating assets
Return on total equity
Return on common equity
DuPont equation
Fixed asset turnover
Return on investment
Gross profit margin
Operating ratio
Percent earned on operating property
Operating revenue to operating property ratio
Long-term debt to operating property ratio
Chapter 8: Calculating Capital

Sizing Up Shareholders
Financial leverage
Earnings per common share
Operating cash flows per share
Price to earnings ratio
Percentage of earnings retained
Dividend payout
Dividend yield
Book value per share
Cash dividend coverage ratio
Banking on Metrics
Earning assets to total assets ratio
Net interest margin
Loan loss coverage ratio
Equity to total assets ratio
Deposits times capital
Loans to deposits ratio
Keeping Debt Healthy
Times interest earned
Fixed charge coverage
Debt ratio
Debt to equity ratio
Debt to tangible net worth
Operating cash flows to total debt
Equity multiplier
Part 3: Valuations on the Price Tags of Business

Chapter 9: Determining Present and Future Values: Time Is Money

Losing Value over Time
Inflation
Interest rates
Predicting Future Value
Simple interest
Compound interest
Calculating the Present Value
A closer look at earnings
Discounted cash flows
Chapter 10: Calling in the Cavalry

Budgeting Capital
Rating Your Returns
Looking at costs
Calculating revenue
Calculating the accounting rate of return
Making the most of the internal rate of return through modification
Netting Present Values
Calculating NPV over time
Managing the project's value
Paying It Back
Allocating Capital
Calculating the equivalent annual cost
Considering liquid assets
Managing Projects
Value schedule metrics
Budget metrics
Chapter 11: Bonding Over Business

Exploring the Different Types of Bonds
Considering corporate bonds
Gauging government bonds
Clipping coupon bonds
Backing up with assets
Converting bonds
Calling it in with callable bonds
Putting in the effort: puttable bonds
Registering the bearer
Counting on forgiveness with catastrophe bonds
Junking bad bonds
Reviewing Bond Rates
Reading Bond Information
Understanding Bond Valuation
Chapter 12: Savvy Stock Sales

Exchanging Stocks
Looking at the Different Types of Orders
Market order
Stop and limit orders
Pegged order
Time-contingent order
Comparing Long and Short Stocks
Buying long
Buying on margin
Selling short
Defining Caps and Sectors
Caps
Sectors
Raging Bulls and Grizzly Bears
Beating Stock Indices?. .
Imagining the Value of Stocks
Surveying equity valuation models
Checking out corporate analysis
Evaluating industry performance
Factoring in stock market fluctuations
Considering macroeconomics
Chapter 13: Pricing Probability from Derived Value

Deriving Value
Keeping Your Options Open
Choosing between put and call
Valuing an option
Paying It Forward
Agreeing to forward
Valuing a forward
Standardizing the Future
Predicting futures
Valuing futures
Swapping Numbers
Managing risk with swaps
Generating revenue with swaps
Valuing a swap
Part 4: A Wonderland of Risk Management

Chapter 14: Managing Uncertainty

Understanding that Risk Is Unavoidable
Risking Your Interest with Inflation
Minimizing Market Risk
Giving Credit Where It's Due
Getting Shady with Off-Balance-Sheet Risk
Factoring in Foreign Exchange Risk
Transaction risk
Translation risk
Other foreign exchange risk
Identifying Operating Risk
Looking at Liquidity Risk
Sorting Your Customer's Laundry
Chapter 15: Through the Looking Glass of Modern Portfolio Theory

Delving into Portfolio Basics
Surveying portfolio management strategies
Looking at modern portfolio theory
Understanding passive versus active management
Joking about Market Efficiency
Risking Returns
Looking at the trade-off between risk and return
Diversifying to maximize returns and minimize risk
Considering risk aversion
Measuring risk
Optimizing Portfolio Risk
Reaching the efficient frontier
Innovating risk management
Chapter 16: Financially Engineering Yourself Deeper Down the Rabbit Hole

Making Securities Out of Anything
You can securitize everything
Slicing securities into tranches
Splicing Hybrids
The mixed-interest class of hybrids
Single asset class hybrids
Indexed-back CDs
Bundling Assets
Pass-through certificates
Multi-asset bundles
Unbundling
Exploring Exotics
Options
Swaps contracts
Loans
Engineering Finances
Moving into Computational Finance
Changing the face of trading
Banking from beyond
Building quantitative algorithms
Chapter 17: Weighing Capital

Calculating the Cost of Capital
Measuring cost of capital
[https://www.wileyindia.com/corporate-finance-for-dummies-2ed.html]

Corporate Finance For Dummies 2E is an introduction to corporate finance that's easy to understand and takes the fear out of this sometimes intense topic. Students and other readers will find real-life examples of corporate finance at work, and they'll learn how to understand financial statements and manage risks, investments, and assets. This book tracks to an introductory course in Corporate Finance and gives students seeking a career in the field the foundation they need to succeed.
(https://www.wileyindia.com/corporate-finance-for-dummies-2ed.html)

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Business and management
Corporations finance

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