Introduction: Capital Formation, Risk, and the Corporation.- The Corporation and Other Forms of Business Organization.- The Corporation Balance Sheet.- The Operating Statements: The Income Statement and Annual Cash Flow Statement.- Financing Current Operations, Ratio And Credit Analysis.- Financing Current Operations And The Cash Budget.- Capital and New Issue Markets.- The Equity of the Corporation: Common and Preferred Stock.- Long-Term Debt.- Debt, Equity, the Optimal Financial Structure and the Cost of Funds.- Investing in Assets: Theory of Investment Decision Making.- Regression Analysis And Forecasting Models.- Time Series Modeling and the Forecasting Effectiveness of the U.S. Leading Economic Indicators.- Risk and Return on Equity and the Capital Asset Pricing Model.- Multi-Factor Risk Models.- Options.- Real Options.- Mergers and Acquisitions.- Liquidation, Failure, Bankruptcy, and Reorganization.- Corporation Growth and Economic Growth and Stability.- International Business Finance.- Management-Stockholder Relations.
Fundamentals of corporation finance.- Introduction: Capital formation, risk, and the corporation.- The corporation and other forms of business organization.- The corporation balance sheet.- The operating statements.- Asset and financial structures.- Capital markets and investment bankers.- Best Effort vs. Firm Commitment or Underwriting Basis.- Private Placements.- Secondary Flotations.- Issuing Securities Through Rights.- Stock Tend.-Promotion and public share financing of corporate enterprises.- The problem of control.- The equity of the corporation: common and preferred stock.- Common stock as risk capital.- Rewards of common shareholders.- The value of common shares stock.- Splits and stock dividends.- The cost of common stock financing.- Features of preferred stock.- Cost of preferred stock.- Long-term debt.- Mortgage agreement.- Subordinate mortgages.- Dividend restrictions.- Sinking funds.- Restrictions on creating new debt.- Implicit cost of debt.- The explicit costs of debt.- The interest cost.- Setting the rate on a new issue.- Regression analysis.- Financial management.- Sales forecasting and pro forma statement analysis.- Selecting the capital cost base costing the components of the financial mix.- Summary.- Risk and return of equity and the capital asset pricing model.- Reasons for debt reduction.- Effects of debt reduction.- Managerial discretion and terms of repayment methods for retiring specific issues.- Summary.- Financing current operations.- The option pricing model and equity valuation.- External relationships of the corporation.- Corporation growth and economic growth and stability.- Monetary policy and investment decisions of the firm.- Self-stabilization programs.- Mergers, combinations, acquisitions, and holding companies.- Liquidation, failure, bankruptcy, and reorganization.- Management-stockholder relations.- Appendix.- Index.
The book addresses several problems in contemporary corporate finance: optimal capital structure, both in the US and in the G7 economies; the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APT) and the implications for the cost of capital; dividend policy; sales forecasting and pro forma statement analysis; leverage and bankruptcy; and mergers and acquisitions. It is designed to be used as an advanced graduate corporate financial management textbook.
Quantitative Corporate Finance is an advanced graduate corporate financial management textbook. The book addresses several problems in contemporary corporate finance: optimal capital structure, both in the US and in the G7 economies, the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APT) and the implications for the cost of capital, dividend policy, sales forecasting and pro forma statement analysis, leverage and bankruptcy, and mergers and acquisitions.