Corporate Finance

Get a distinctly European take on corporate finance The newly revised Sixth Edition of Corporate Finance: Theory and Practice delivers a uniquely European perspective on the foundations and latest trends in corporate finance, including the marked shifts brought about by sustainability, environmental, and social concerns. Containing updated statistics and graphs, the book covers the latest innovations in financial practice, like the rise of private equity investment, the continuous decline in listed companies, and the dramatic surge of sustainability-linked financing products. Readers get access to an accompanying website that offers regularly updated statistics, graphs, and charts, direct email access to the authors, quizzes, case studies, articles, and more. The book also includes: A balanced blend of theory and practice from an author team with a presence in academia and business Access to The Vernimmen.com Newsletter, which provides monthly updates on corporate finance to over 60,000 subscribers Ideal for students studying corporate finance as part of an MBA or a master's level programme in Finance, Corporate Finance: Theory and Practice is also required reading for practicing professionals in the UK and continental Europe seeking a distinctly European treatment of a critically important subject.

Get a distinctly European take on corporate financeThe newly revised Sixth Edition of Corporate Finance: Theory and Practice delivers a uniquely European perspective on the foundations and latest trends in corporate finance, including the marked shifts brought about by sustainability, environmental, and social concerns.Containing updated statistics and graphs, the book covers the latest innovations in financial practice, like the rise of private equity investment, the continuous decline in listed companies, and the dramatic surge of sustainability-linked financing products. Readers get access to an accompanying website that offers regularly updated statistics, graphs, and charts, direct email access to the authors, quizzes, case studies, articles, and more.The book also includes:* A balanced blend of theory and practice from an author team with a presence in academia and business* Access to The Vernimmen.com Newsletter, which provides monthly updates on corporate finance to over 60,000 subscribersIdeal for students studying corporate finance as part of an MBA or a master's level programme in Finance, Corporate Finance: Theory and Practice is also required reading for practicing professionals in the UK and continental Europe seeking a distinctly European treatment of a critically important subject.

Preface viiiFrequently used symbols xii1 Towards A Green, Responsible and Sustainable Corporate Finance 1Section I Financial Analysis 17Part One Fundamental Concepts In Financial Analysis 192 Cash Flow 213 Earnings 314 Capital Employed and Invested Capital 465 Walking Through From Earnings To Cash Flow 586 Getting To Grips With Consolidated Accounts 727 How To Cope With The Most Complex Points In Financial Accounts 90Part Two Financial Analysis and Forecasting 1178 How To Perform A Financial Analysis 1199 Margin Analysis: Structure 14410 Margin Analysis: Risks 16711 Working Capital and Capital Expenditures 18212 Financing 20313 Return On Capital Employed and Return On Equity 21914 Conclusion of Financial Analysis 238Section II Investors and Markets 245Part One Investment Decision Rules 24715 The Financial Markets 24916 The Time Value of Money and Net Present Value 27017 The Internal Rate of Return 286Part Two The Risk of Securities and The Required Rate of Return 29918 Risk and Return 30119 The Required Rate of Return 329Part Three Financial Securities 34720 Bonds 34921 Other Debt Products 37022 Shares 38623 Options 40624 Hybrid Securities 42725 Selling Securities 445Section III Value 46926 Value and Corporate Finance 47127 Measuring Value Creation 49128 Investment Criteria 50929 The Cost of Capital 52530 Risk and Investment Analysis 54231 Valuation Techniques 557Section IV Corporate Financial Policies 589Part One Capital Structure Policies 59132 Capital Structure and The Theory of Perfect Capital Markets 59333 Capital Structure, Taxes and Organisation Theories 60534 Debt, Equity and Options Theory 62135 Working Out Details: The Design of The Capital Structure 639Part Two Equity Capital 65936 Returning Cash To Shareholders 66137 Distribution In Practice: Dividends and Share Buy-Backs 67838 Share Issues 696Part Three Debt Capital 70939 Implementing A Debt Policy 711Section V Financial Management 729Part One Corporate Governance and Financial Engineering 73140 Setting Up A Company and Financing Start-Ups 73341 Shareholders 75442 Choosing A Corporate Structure 77943 Corporate Governance 79544 Initial Public Offerings (IPOS) 80745 Taking Control of A Company 81946 Mergers and Demergers 84247 Leveraged Buyouts (LBOS) 86048 Bankruptcy and Restructuring 876Part Two Managing Working Capital, Cash Flows, Financial Risks and Real Estate 88949 Managing Working Capital 89150 Cash Management 90351 Managing Financial Risks 92252 Managing Operational Real Estate 946Epilogue - Finance and Strategy 958Top 20 Largest Listed Companies 965Contents 973Index 983