Corporate Finance: Part II Budgetting, Financing & Valuation
Publisher: Bookboon.com
Published: 2013
ISBN-13: 9788776815691
Table of contents: title: Content; title: 1. Capital budgeting; title: 1.1 Cost of capital with preferred stocks; title: 1.2 Cost of capital for new projects; title: 1.3 Alternative methods to adjust for risk; title: 1.4 Capital budgeting in practise; title: 1.4.1 What to discount?; title: 1.4.2 Calculating free cash flows; title: 1.4.3 Valuing businesses; title: 1.5 Why projects have positive NPV; title: 2. Market efficiency; title: 2.1 Tests of the efficient market hypothesis; title: 2.1.1 Weak form; title: 2.1.2 Semi-strong form; title: 2.1.3 Strong form; title: 2.1.4 Classical stock market anomalies; title: 2.2 Behavioural finance; title: 3. Corporate financing and valuation; title: 3.1 Debt characteristics; title: 3.2 Equity characteristics; title: 3.3 Debt policy; title: 3.3.1 Does the firm’s debt policy affect firm value?; title: 3.3.2 Debt policy in a perfect capital market; title: 3.4 How capital structure affects the beta measure of risk; title: 3.5 How capital structure affects company cost of capital; title: 3.6 Capital structure theory when markets are imperfect; title: 3.7 Introducing corporate taxes and cost of financial distress; title: 3.8 The Trade-off theory of capital structure; title: 3.9 The pecking order theory of capital structure; title: 3.10 A final word on Weighted Average Cost of Capital; title: 3.11 Dividend policy; title: 3.11.1 Dividend payments in practise; title: 3.11.2 Stock repurchases in practise; title: 3.11.3 How companies decide on the dividend policy; title: 3.11.4 Does the firm’s dividend policy affect firm value?; title: 3.11.5 Why dividend policy may increase firm value; title: 3.11.6 Why dividend policy may decrease firm value; title: 4. Options; title: 4.1 Option value; title: 4.2 What determines option value?; title: 4.3 Option pricing; title: 4.3.1 Binominal method of option pricing; title: 4.3.2 Black-Scholes’ Model of option pricing; title: 5. Real options; title: 5.1 Expansion option; title: 5.2 Timing option; title: 5.3 Abandonment option; title: 5.4 Flexible production option; title: 5.5 Practical problems in valuing real options; title: 6. Appendix: Overview of formulas; title: Index