Principles Of Corporate Finance
Wessel de Boer
Finance and Control Jaar 4
,Content
Chapter 2 How to Calculate Present Values .............................................................................................. 4
2.1 How to Calculate Future and Present Values ......................................................................................... 4
Chapter 6 Making Investment Decisions with the Net Present Value Rule ................................................ 6
6.1 Forecasting a Project’s Cash Flows ........................................................................................................ 6
Chapter 9 Risk and Cost of Capital ............................................................................................................ 8
9.1 Company and project costs of capital .................................................................................................... 8
Chapter 13 An Overview of Corporate Finance ....................................................................................... 10
13.1 Patterns of Corporate Financing ........................................................................................................ 10
13.2 Equity ................................................................................................................................................. 10
13.3 Debt ................................................................................................................................................... 11
13.5 Financial markets and intermediaries................................................................................................ 11
Chapter 14 How Corporations Issue Securities ....................................................................................... 14
14.1 Venture Capital .................................................................................................................................. 14
14.2 The Initial Public Offering................................................................................................................... 14
14.3 Security sales by public companies .................................................................................................... 15
14.4 Private Placements ............................................................................................................................ 15
Chapter 15 Payout Policy ....................................................................................................................... 16
15.1 Facts about payout ............................................................................................................................ 16
15.2 Dividends or repurchases? Does the choice affect shareholder value? ............................................. 17
Chapter 18 Financing and Valuation ....................................................................................................... 18
18.1 The after-tax weighted-average cost of capital ................................................................................. 18
18.2 Valuing businesses ............................................................................................................................. 18
Chapter 29 Financial Analysis ................................................................................................................. 20
29.1 Understanding Financial Statements ................................................................................................. 20
29.2 Measuring company performance ..................................................................................................... 20
29.3 Measuring Efficiency .......................................................................................................................... 21
29.4 Measuring leverage ........................................................................................................................... 22
29.5 Measuring Liquidity ........................................................................................................................... 23
Chapter 30 Financial Planning and Working Capital Management .......................................................... 24
30.2 Tracing and Forecasting Changes in Cash.......................................................................................... 24
Chapter 32 Mergers ............................................................................................................................... 25
32.1 Types of Merger ................................................................................................................................. 25
32.2 Some Sensible Motives for Mergers ................................................................................................... 25
2
, 32.3 Some dubious motives for Mergers ................................................................................................... 26
32.4 Estimating merger gains and Costs ................................................................................................... 26
3
Wessel de Boer
Finance and Control Jaar 4
,Content
Chapter 2 How to Calculate Present Values .............................................................................................. 4
2.1 How to Calculate Future and Present Values ......................................................................................... 4
Chapter 6 Making Investment Decisions with the Net Present Value Rule ................................................ 6
6.1 Forecasting a Project’s Cash Flows ........................................................................................................ 6
Chapter 9 Risk and Cost of Capital ............................................................................................................ 8
9.1 Company and project costs of capital .................................................................................................... 8
Chapter 13 An Overview of Corporate Finance ....................................................................................... 10
13.1 Patterns of Corporate Financing ........................................................................................................ 10
13.2 Equity ................................................................................................................................................. 10
13.3 Debt ................................................................................................................................................... 11
13.5 Financial markets and intermediaries................................................................................................ 11
Chapter 14 How Corporations Issue Securities ....................................................................................... 14
14.1 Venture Capital .................................................................................................................................. 14
14.2 The Initial Public Offering................................................................................................................... 14
14.3 Security sales by public companies .................................................................................................... 15
14.4 Private Placements ............................................................................................................................ 15
Chapter 15 Payout Policy ....................................................................................................................... 16
15.1 Facts about payout ............................................................................................................................ 16
15.2 Dividends or repurchases? Does the choice affect shareholder value? ............................................. 17
Chapter 18 Financing and Valuation ....................................................................................................... 18
18.1 The after-tax weighted-average cost of capital ................................................................................. 18
18.2 Valuing businesses ............................................................................................................................. 18
Chapter 29 Financial Analysis ................................................................................................................. 20
29.1 Understanding Financial Statements ................................................................................................. 20
29.2 Measuring company performance ..................................................................................................... 20
29.3 Measuring Efficiency .......................................................................................................................... 21
29.4 Measuring leverage ........................................................................................................................... 22
29.5 Measuring Liquidity ........................................................................................................................... 23
Chapter 30 Financial Planning and Working Capital Management .......................................................... 24
30.2 Tracing and Forecasting Changes in Cash.......................................................................................... 24
Chapter 32 Mergers ............................................................................................................................... 25
32.1 Types of Merger ................................................................................................................................. 25
32.2 Some Sensible Motives for Mergers ................................................................................................... 25
2
, 32.3 Some dubious motives for Mergers ................................................................................................... 26
32.4 Estimating merger gains and Costs ................................................................................................... 26
3
