Strategic Financial Management
Publisher: bookboon.com
Published: 2013
Table of contents: title: PART ONE: AN INTRODUCTION; title: 1. Finance – An Overview; title: 1.1 Financial Objectives and Shareholder Wealth; title: 1.2 Wealth Creation and Value Added; title: 1.3 The Investment and Finance Decision; title: 1.4 Decision Structures and Corporate Governance; title: 1.5 The Developing Finance Function; title: 1.6 The Principles of Investment; title: 1.7 Perfect Markets and the Separation Theorem; title: 1.8 Summary and Conclusions; title: 1.9 Selected References; title: PART TWO: THE INVESTMENT DECISION; title: 2. Capital Budgeting Under Conditions of Certainty; title: 2.1 The Role of Capital Budgeting; title: 2.2 Liquidity, Profitability and Present Value; title: 2.3 The Internal Rate of Return (IRR); title: 2.4 The Inadequacies of IRR and the Case for NPV; title: 2.5 Summary and Conclusions; title: 3. Capital Budgeting and the Case for NPV; title: 3.1 Ranking and Acceptance Under IRR and NPV; title: 3.2 The Incremental IRR; title: 3.3 Capital Rationing, Project Divisibility and NPV; title: 3.4 Relevant Cash Flows and Working Capital; title: 3.5 Capital Budgeting and Taxation; title: 3.6 NPV and Purchasing Power Risk; title: 3.7 Summary and Conclusions; title: 4. The Treatment of Uncertainty; title: 4.1 Dysfunctional Risk Methodologies; title: 4.2 Decision Trees, Sensitivity and Computers; title: 4.3 Mean-Variance Methodology; title: 4.4 Mean-Variance Analyses; title: 4.5 The Mean-Variance Paradox; title: 4.5 Certainty Equivalence and Investor Utility; title: 4.6 Summary and Conclusions; title: 4.7 Reference; title: PART THREE: THE FINANCE DECISION; title: 5. Equity Valuation and the Cost of Capital; title: 5.1 The Capitalisation Concept; title: 5.2 Single-Period Dividend Valuation; title: 5.3 Finite Dividend Valuation; title: 5.4 General Dividend Valuation; title: 5.5 Constant Dividend Valuation; title: 5.6 The Dividend Yield and Corporate Cost of Equity; title: 5.7 Dividend Growth and the Cost of Equity; title: 5.8 Capital Growth and the Cost of Equity; title: 5.9 Growth Estimates and the Cut-Off Rate; title: 5.10 Earnings Valuation and the Cut-Off Rate; title: 5.11 Summary and Conclusions; title: 5.12 Selected References; title: 6. Debt Valuation and the Cost of Capital; title: 6.1 Capital Gearing (Leverage): An Introduction; title: 6.2 The Value of Debt Capital and Capital Cost; title: 6.3 The Tax-Deductibility of Debt; title: 6.4 The Impact of Issue Costs; title: 6.5 Summary and Conclusions; title: 7. Capital Gearing and the Cost of Capital; title: 7.1 The Weighted Average Cost of Capital (WACC); title: 7.2 WACC Assumptions; title: 7.3 The Real-World Problems of WACC Estimation; title: 7.4 Summary and Conclusions; title: 7.5 Selected Reference; title: PART FOUR: THE WEALTH DECISION; title: 8. Shareholder Wealth and Value Added; title: 8.1 The Concept of Economic Value Added (EVA); title: 8.2 The Concept of Market Value Added (MVA); title: 8.3 Profit and Cash Flow; title: 8.4 EVA and Periodic MVA; title: 8.5 NPV Maximisation, Value Added and Wealth; title: 8.6 Summary and Conclusions; title: 8.7 Selected References