Frequently Asked Questions in Corporate Finance

The definitive question and answer guide to understanding corporate finance From the team behind the popular corporate finance website, Vernimmen.com comes a concise guide to the subject, presented in an easy-to-use, highly accessible "e;question and answer"e; format. An essential reference for students of corporate finance and practising corporate financiers alike, Frequently Asked Questions in Corporate Finance answers key questions in financial engineering, valuation, financial policy, cost of capital, financial analysis, and financial management. Covering both the theory and practice of corporate finance, the book demonstrates how financial theory can be put to use solving practical problems. What advantages are there to a business looking to spin off its divisions into subsidiaries? Is there a formula that can be used to determine the change in normalised free cash flows? What are the possible reasons behind a share buyback? What are the pros and cons of off-market share buy-back? Filled with the answers to all of the most common, and not so common, questions about corporate finance, the book presents authoritative, reliable information from a respected team of experts from the banking, corporate, and academic worlds.

The definitive question and answer guide to understandingcorporate financeFrom the team behind the popular corporate finance websiteVernimmen.com comes a concise guide to the subject, presented in aneasy-to-use, highly accessible "question and answer" format. Anessential reference for students of corporate finance andpractising corporate financiers alike, Frequently AskedQuestions in Corporate Finance answers key questions infinancial engineering, valuation, financial policy, cost ofcapital, financial analysis, and financial management. Coveringboth the theory and practice of corporate finance, the bookdemonstrates how financial theory can be put to use solvingpractical problems.* What advantages are there to a business looking to spin off itsdivisions into subsidiaries?* Is there a formula that can be used to determine the change innormalised free cash flows?* What are the possible reasons behind a share buyback? What arethe pros and cons of off-market share buy-back?Filled with the answers to all of the most common, and not socommon, questions about corporate finance, the book presentsauthoritative, reliable information from a respected team ofexperts from the banking, corporate, and academic worlds.

1 Frequently Asked Questions 12 Topics 40950 years of research in finance 410Ten deadly mistakes in corporate finance 412Five mistakes in corporate valuation 423M&A: Six mistakes to be avoided 429Rating agencies 432Credit scoring 435Behavioral finance: are investors really rational? 438Micro-finance: helping the poor 444Project finance 449Corporate finance in Europe: confronting theory with practice 454Capital markets: some useful definitions 457Transaction multiples: before and during the crisis 459The making of an investment banker 469Corporate finance books 472Brainteasers - PART I 475Brainteasers - PART II 478Answers 481True or false: test yourself 482Answers 484Crossword 487Index 493