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)