Lessons in Corporate Finance - Lawrence A Weiss

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Auteur(s) : Lawrence A Weiss - Paul Asquith

Editeur : Wiley

Langue : Anglais

Parution : 01/03/2019

Format : Moyen, de 350g à 1kg

Nombre de pages : 544

Expédition : 1212

Dimensions : 26.0 x 18.3 x 3.4

ISBN : 1119537835

Résumé :

An intuitive introduction to fundamental corporate finance concepts and methods

Lessons in Corporate Finance, Second Edition offers a comprehensive introduction to the subject, using a unique interactive question and answer-based approach. Asking a series of increasingly difficult questions, this text provides both conceptual insight and specific numerical examples. Detailed case studies encourage class discussion and provide real-world context for financial concepts. The book provides a thorough coverage of corporate finance including ratio and pro forma analysis, capital structure theory, investment and financial policy decisions, and valuation and cash flows provides a solid foundational knowledge of essential topics. This revised and updated second edition includes new coverage of the U.S. Tax Cuts and Jobs Act of 2017 and its implications for corporate finance valuation.

Written by acclaimed professors from MIT and Tufts University, this innovative text integrates academic research with practical application to provide an in-depth learning experience. Chapter summaries and appendices increase student comprehension. Material is presented from the perspective of real-world chief financial officers making decisions about how firms obtain and allocate capital, including how to:

• Manage cash flow and make good investment and financing decisions

• Understand the five essential valuation methods and their sub-families
• Execute leveraged buyouts, private equity financing, and mergers and acquisitions
• Apply basic corporate finance tools, techniques, and policies

?Lessons in Corporate Finance, Second Edition?provides an accessible and engaging introduction to the basic methods and principles of corporate finance. From determining a firm's financial health to valuation nuances, this text provides the essential groundwork for independent investigation and advanced study.?

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Biographie:

PAUL ASQUITH is the Gordon Y. Billard professor of finance at M.I.T.'s Sloan School. He is a specialist in corporate finance and has written on all areas of corporate finance including mergers, LBOs, equity issues, dividend policy, and more.

LAWRENCE A. WEISS is professor of International Accounting at Tufts University. He is a specialist in accounting and finance and has written on corporate bankruptcy, firm performance, international accounting, mergers, and more....

Sommaire:

About the Authors xiii

Acknowledgments xv

Preface xvii

Chapter 1 Introduction 1

Two Markets: Product and Capital 2

The Basics: Tools and Techniques 3

A Diagram of Corporate Finance 4

A Brief History of Modern Finance 5

Reading This Book 6

Part One Financial Health of a Firm and Cash Flow Management

Chapter 2 Determining a Firm's Financial Health (PIPES-A) 11

The Conversation with the Banker Is Like a Job Interview 11

Starting with the Product Market Strategy 13

Is PIPES Profitable? 14

Doing the Math 14

Sources and Uses of Funds 16

Ratio Analysis 20

The Cash Cycle 26

Summary 28

Chapter 3 Pro Forma Forecasts (PIPES-B) 31

First, Let's Take a Closer Look at Ratio Analysis 31

Pro Forma Forecasts 33

Circular Relationships 40

Back to (Forecasting) the Future 42

Projecting Out to 2018 and 2019 43

Evaluating the Loan 45

Summary 50

Appendix 3A: Accounting Is Not Economic Reality 52

Chapter 4 The Impact of Seasonality on a Firm's Funding (PIPES-C) 57

Monthly Pro Forma Income Statements 58

Monthly Pro Forma Balance Sheets 60

A Different Picture of the Firm 68

Summary 72

Appendix 4A: PIPES Monthly Pro Forma Income Statements and Balance Sheets, 2018 73

Appendix 4B: PIPES Monthly Pro Forma Income Statements and Balance Sheets, 2019 76

Part Two Firm Financing and Financial Policies

Chapter 5 Why Financing Matters (Massey Ferguson) 81

Product Market Position and Strategy 81

Political Risk and Economies of Scale in Production 82

Massey Ferguson, 1971-1976 83

Sustainable Growth 85

The Period after 1976 87

Conrad Runs Away 90

The Competitors 91

Back to Massey 93

Massey's Restructuring 96

Postscript: What Happened to Massey 100

Summary 100

Appendix 5A: Massey Ferguson Financial Statements 102

Chapter 6 An Introduction to Capital Structure Theory 107

Optimal Capital Structure 108

M&M and Corporate Finance 111

Taxes 116

Costs of Financial Distress 126

The Textbook View of Capital Structure 131

The Cost of Capital 133

Summary 134

Chapter 7 Capital Structure Decisions (Marriott Corporation and Gary Wilson) 137

Capital Structure 137

The Cost of Capital 144

How Firms Set Capital Structure in Practice 147

Corporate Financial Policies 148

Sustainable Growth and Excess Cash Flow 151

What to Do with Excess Cash? 152

Summary 154

Appendix 7A: Marriott Corporation Income Statements and Balance Sheets 156

Appendix 7B: Marriott Corporation Selected Ratios 158

Chapter 8 Investment Decisions (Marriott Corporation and Gary Wilson) 159

What Is the Correct Price? 160

How Should Marriott Buy Its Shares? 160

The Loan Covenants 164

The Impact of the Product Market on Financial Policies 165

The Capital Market Impact and the Future 167

Summary 173

Chapter 9 Financial Policy Decisions (AT&T: Before and After the 1984 Divestiture) 177

Background on AT&T 178

M&M and the Practice of Corporate Finance 178

Old (pre-1984) AT&T 180

New (post-1984) AT&T 195

Summary 207

Appendix 9A: Development of AT&T Pro Formas, 1984-1988 (Expected-Case) 208

Chapter 10 The Impact of Operating Strategy on Corporate Finance Policy (MCI) 211

A Brief Summary 211

A Brief History of MCI 213

Convertible Preferred Stock and Convertible Bonds 218...