Details

<p>Preface viii</p> <p>Frequently used symbols xii</p> <p>1 Towards A Green, Responsible and Sustainable Corporate Finance 1</p> <p><b>Section I </b><b>Financial Analysis 17</b></p> <p><b>Part One </b><b>Fundamental Concepts In Financial Analysis 19</b></p> <p>2 Cash Flow 21</p> <p>3 Earnings 31</p> <p>4 Capital Employed and Invested Capital 46</p> <p>5 Walking Through From Earnings To Cash Flow 58</p> <p>6 Getting To Grips With Consolidated Accounts 72</p> <p>7 How To Cope With The Most Complex Points In Financial Accounts 90</p> <p><b>Part Two </b><b>Financial Analysis and Forecasting 117</b></p> <p>8 How To Perform A Financial Analysis 119</p> <p>9 Margin Analysis: Structure 144</p> <p>10 Margin Analysis: Risks 167</p> <p>11 Working Capital and Capital Expenditures 182</p> <p>12 Financing 203</p> <p>13 Return On Capital Employed and Return On Equity 219</p> <p>14 Conclusion of Financial Analysis 238</p> <p><b>Section II </b><b>Investors and Markets 245</b></p> <p><b>Part One </b><b>Investment Decision Rules 247</b></p> <p>15 The Financial Markets 249</p> <p>16 The Time Value of Money and Net Present Value 270</p> <p>17 The Internal Rate of Return 286</p> <p><b>Part Two </b><b>The Risk of Securities and The Required Rate of Return 299</b></p> <p>18 Risk and Return 301</p> <p>19 The Required Rate of Return 329</p> <p><b>Part Three </b><b>Financial Securities 347</b></p> <p>20 Bonds 349</p> <p>21 Other Debt Products 370</p> <p>22 Shares 386</p> <p>23 Options 406</p> <p>24 Hybrid Securities 427</p> <p>25 Selling Securities 445</p> <p><b>Section III </b><b>Value 469</b></p> <p>26 Value and Corporate Finance 471</p> <p>27 Measuring Value Creation 491</p> <p>28 Investment Criteria 509</p> <p>29 The Cost of Capital 525</p> <p>30 Risk and Investment Analysis 542</p> <p>31 Valuation Techniques 557</p> <p><b>Section IV </b><b>Corporate Financial Policies 589</b></p> <p><b>Part One </b><b>Capital Structure Policies 591</b></p> <p>32 Capital Structure and The Theory of Perfect Capital Markets 593</p> <p>33 Capital Structure, Taxes and Organisation Theories 605</p> <p>34 Debt, Equity and Options Theory 621</p> <p>35 Working Out Details: The Design of The Capital Structure 639</p> <p><b>Part Two </b><b>Equity Capital 659</b></p> <p>36 Returning Cash To Shareholders 661</p> <p>37 Distribution In Practice: Dividends and Share Buy-Backs 678</p> <p>38 Share Issues 696</p> <p><b>Part Three </b><b>Debt Capital 709</b></p> <p>39 Implementing A Debt Policy 711</p> <p><b>Section V </b><b>Financial Management 729</b></p> <p><b>Part One </b><b>Corporate Governance and Financial Engineering 731</b></p> <p>40 Setting Up A Company and Financing Start-Ups 733</p> <p>41 Shareholders 754</p> <p>42 Choosing A Corporate Structure 779</p> <p>43 Corporate Governance 795</p> <p>44 Initial Public Offerings (IPOS) 807</p> <p>45 Taking Control of A Company 819</p> <p>46 Mergers and Demergers 842</p> <p>47 Leveraged Buyouts (LBOS) 860</p> <p>48 Bankruptcy and Restructuring 876</p> <p><b>Part Two </b><b>Managing Working Capital, Cash Flows, Financial Risks and Real Estate 889</b></p> <p>49 Managing Working Capital 891</p> <p>50 Cash Management 903</p> <p>51 Managing Financial Risks 922</p> <p>52 Managing Operational Real Estate 946</p> <p>Epilogue – Finance and Strategy 958</p> <p>Top 20 Largest Listed Companies 965</p> <p>Contents 973</p> <p>Index 983</p>

<p><b>Pierre Vernimmen </b>(deceased) was a founding member and the first Coordinator of the Finance Department at HEC Paris. From 1973 to his death in 1996, he worked at Paribas as a private equity investor and, subsequently, led its mergers and acquisition teams.</p> <p><b>Pascal Quiry</B> holds the BNP Paribas Chair in Finance at HEC Paris. After 23 years as an M&A banker, he founded an investment fund that invests in startups and unlisted SMEs. He is also an active investor in several listed companies. <p><b>Yann Le Fur</b> is a former Affiliated Professor at HEC Paris and is the head of the corporate finance group for Natixis in New York. He is also an active investor in several unlisted companies.

<p><b>An authoritative perspective on corporate finance</b> <p>Sound business management requires a firm grasp of financial principles and strategy. Theoretical knowledge is vital, but so is a solid understanding of how theory interacts with the real world in a familiar context. <p>This newly revised Sixth Edition of <i>Corporate Finance: Theory and Practice</i> delivers a balanced and instructive blend of financial theory and practice. The text offers presentations of concepts that explain situations, followed by straightforward discussions of finance techniques with applications in those situations. <p><i>Corporate Finance</i> is based on the most recent business data and incorporates the impressive surge in green and sustainable finance that is transforming the way companies finance themselves. This new edition integrates the latest International Financial Reporting Standards (IFRS)—including those for accounting for operating leases—and explores the rise of private equity investment. <p><i>Corporate Finance: Theory and Practice, Sixth Edition</i> is an ideal resource for those studying corporate finance as part of an MBA or a master’s level programme in Finance and for practicing business professionals.

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