Corporate Finance

Corporate Finance: Theory and Practice covers the theory and practice of Corporate Finance from a truly European perspective. It shows how to use financial theory to solve practical problems and is written for students of corporate finance and financial analysis and practising corporate financiers. Corporate Finance is split into four sections and covers the basics of financial analysis; the basic theoretical knowledge that you will need to value a firm; the major types of financial securities: equity, debt & options and finally financial management which shows you how to organise a company's equity capital, buying and selling companies, M&A, bankruptcy and cash flow management.

Key features include:

* A section on financial analysis - a Corporate Financier must understand a company based on a detailed analysis of its accounts. Large numbers neglected this approach during the last stock market bubble and were caught in the crash that inevitably followed. How many investors took the trouble to read Enron's annual report? Those who did found that it spoke volumes!
* End of Chapter Summary, Questions and Answers, Glossary, European Case Studies

* A supporting Website vernimmen.com with free access to statistics, a glossary & lexicon; articles, notes on financial transactions, basic financial figures for more than 10,000 European and US listed companies, thesis topics, a bibliography; case studies, Q&A; A letter box for your questions to the authors - a reply guaranteed within 72 hours!
* A free monthly newsletter on Corporate Finance sent out to subscribers to the site.
* The book, the website vernimmen.com and the Vernimmen.com newsletter are all written and created by an author team who are both investment bankers/corporate financiers and academics.

"Impressive book for finance professionals - Probably the best recently published Corporate Finance book with a truly European emphasis. The balance between theory and practice makes this book an excellent tool for Investment Bankers and other finance professionals, as it covers both basic as well as more sophisticated topics. Particularly impressive is their commitment to continuously updating material, as well as the regular publication of a newsletter containing timely articles on various current finance topics. The possibility of asking questions to the authors and effectively receiving in-depth answers for free is a very valuable feature. I sincerely recommend this text." Amazon.co.uk 31 October 2005

"An excellent book for all business students - For a few months already, the Vernimmen.com website had been helping me for my finance class, as well as the monthly newsletter. I finally bought the book, and I have not been disappointed: the style is clear, very practical; theories are mixed with real cases, which makes them easy to understand. Valuation techniques are well explained (discounted cash flow methods, methods based on ratios). Fundamental concepts (accounting, finance, financial markets) are recalled in the first part; when more complex concepts are tackled (investment analysis, LBOs, capital structure.), they are explained with lots of simplicity and conciseness.
I recommend this book for every student in Management or Finance!"
Amazon.co.uk 30 July 2005

Foreword by Richard Roll.

Preface.

List of Frequently Used Symbols.

1. What is corporate finance?

Section I: Financial analysis.

PART ONE: FUNDAMENTAL CONCEPTS IN FINANCIAL ANALYSIS.

2. Cash flows.

3. Earnings.

4. Capital employed and invested capital.

5. Walking through from earnings to cash flow.

6. Getting to grips with consolidated accounts.

7. How to cope with the most complex points in financial accounts.

PART TWO: FINANCIAL ANALYSIS AND FORECASTING.

8. How to perform a financial analysis.

9. Margin analysis: Structure.

10. Margin analysis: Risks.

11. Working capital and capital expenditures.

12. Financing.

13. Return on capital employed and return on equity.

14. Conclusion of financial analysis.

Section II: Investment analysis.

PART ONE: INVESTMENT DECISION RULES.

15. The financial markets.

16. The time value of money and net present value (NPV).

17. The internal rate of return (IRR).

18. Incremental cash flows and other investment criteria.

19. Measuring value creation.

20. Risk and investment analysis.

PART TWO: THE RISK OF SECURITIES AND THE COST OF CAPITAL

21. Risk and return.

22. The cost of equity.

23. From the cost of equity to the cost of capital.

24. The term structure of interest rates.

Section III: Corporate financial policies.

PART ONE: FINANCIAL SECURITIES.

25. Enterprise value and financial securities.

26. Bonds.

27. Other debt products.

28. Shares.

29. Options.

30. Hybrid securities.

31. Selling securities.

PART TWO: CAPITAL STRUCTURE POLICIES.

32. Value and corporate finance.

33. Capital structure and the theory of perfect capital markets.

34. The trade-off model.

35. Debt, equity and options theory.

36. Working out details: the design of the capital structure.

PART THREE: EQUITY CAPITAL AND DIVIDEND POLICIES.

37. Internal financing: reinvesting cash flow.

38. Returning value to shareholders: dividend policies.

39. Capital increases.

Section IV: Financial management.

PART ONE: VALUATION AND FINANCIAL ENGINEERING.

40. Valuation.

41. Choice of corporate structure.

42. Taking control of a company.

43. Mergers and demergers.

44. LBOs.

45. Bankruptcy and restructuring.

PART TWO: MANAGING NET DEBT AND FINANCIAL RISKS.

46. Managing cash flows.

47. Asset-based financing.

48. Managing financial risks.

Appendices.

Glossary.

Index.

Vernimmem.com

Cribsheet.