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Stock Markets And Corporate Finance [Kõva köide]

(Ton Duc Thang Univ, Vietnam)
  • Formaat: Hardback, 528 pages
  • Ilmumisaeg: 13-Oct-2017
  • Kirjastus: World Scientific Europe Ltd
  • ISBN-10: 1786343258
  • ISBN-13: 9781786343253
Teised raamatud teemal:
Stock Markets And Corporate FinanceSuurem pilt
  • Formaat: Hardback, 528 pages
  • Ilmumisaeg: 13-Oct-2017
  • Kirjastus: World Scientific Europe Ltd
  • ISBN-10: 1786343258
  • ISBN-13: 9781786343253
Teised raamatud teemal:
Püsilink: https://www.kriso.ee/db/9781786343253.html
Märksõnad:
This book examines the nature of the stock market and its implications for corporate management. It provides an introduction to core issues in finance and differs from traditional textbooks in its recognition that 'finance is not physics' in the sense that how markets behave today is not necessarily how they will behave tomorrow. Nevertheless, a certain level of 'physics' can be recognized as underpinning the development of stock market valuations and corporate financial decision-making.In short, the objective of the text is to instill insight in regards to the functioning of markets and corporate behavior, as opposed to algebraic derivations from unrealistic assumptions. Rather than subscribe unthinkingly to an 'efficient market hypothesis', at each stage of the development of the text's conceptual framework, we also recognize the reality of market 'sentiment' and the fundamental uncertainty that managers face in their decisions.Based around a teaching programme with worked questions and solutions, Stock Markets and Corporate Finance is the perfect accompaniment for MBA, undergraduate and graduate students looking for a critical textbook on the nature of the financial sector and corporate finance.
Academic Text vii
Preface xi
About the Author xiii
Summary of
Chapters		 xxiii
The Important Formulas xxvii
1 Introduction: Stock Markets, Investments and Corporate Financial Decision Making 1(12)
2 A Short History of Stock Markets 13(54)
2.1 Markets in recent times
15(6)
2.1.1 A performance in three acts
15(6)
2.1.1.1 Supporting cast for the stock markets and large firms
15(282)
1 The commercial banks
15(1)
2 The investment banks
15(2)
3 The money markets
17(1)
4 The Central Banks (the Federal Reserve in the US)
18(1)
5 The government
19(1)
6 The professionally managed funds: Mutual funds/hedge funds/insurance funds/pension funds
19(1)
7 The credit rating agencies
20(1)
8 The Basel Committee on Banking Supervision
20(1)
9 The economy
21(1)
2.2 Prologue: The early background economy
21(46)
2.2.1 Act I: The 1980s Bull Market and Black Monday
23(14)
2.2.2 Act II: The dot.com bubble and Black Friday
37(6)
2.2.3 Act III: Securitization and the global financial crisis
43(24)
3 The Time Value of Money and Financial Planning 67(28)
3.1 Introduction
68(1)
3.2 The time-value of money: Discrete returns, compounding and discounting
69(4)
3.2.1 Percentages as fractions
69(1)
3.2.2 Single-period growth
70(1)
3.2.3 Multiple period growth
71(1)
3.2.4 Discounting
72(1)
3.3 Perpetuities and annuities
73(5)
3.3.1 A growing perpetuity
73(1)
3.3.2 A perpetuity
74(1)
3.3.3 Present value of an annuity
75(1)
3.3.4 Future value of an annuity
76(2)
3.4 Quarterly (and semi-annual, etc.) payments
78(2)
3.5 Life policies
80(2)
3.6 Planning for retirement
82(2)
3.7 Real rates of return
84(3)
3.8 Planning for retirement allowing for money purchasing power
87(2)
3.9 Repayment of a mortgage
89(1)
3.10 Time for reflection: What have we learned?
90(5)
4 Market Debt, Interest Rates and Bond Valuation 95(30)
4.1 Introduction
96(1)
4.2 Short-term financing: The money markets
97(4)
4.2.1 Finance companies
100(1)
4.3 The role of a central bank in determining interest rates
101(1)
4.4 Long-term debt
102(2)
4.5 Valuation of bonds
104(4)
4.6 Required discount rate and risk of default
108(2)
4.7 Interrogating bonds
110(6)
i The expectations hypothesis (anticipation of interest rates)
110(3)
ii The liquidity hypothesis (interest rate risk)
113(2)
iii The segmentation hypothesis (segmented markets)
115(1)
4.8 Time for reflection: What have we learned?
116(9)
5 The Valuation of Equity Shares 125(40)
5.1 Introduction
126(1)
5.2 The provision of equity finance
127(1)
5.3 Share price response to new equity issues
128(6)
5.4 The discounting of dividends model of share valuation
134(3)
5.5 A firm with a fixed growth
137(2)
5.6 A firm with zero (real) growth
139(2)
5.7 Motivation for dividends
141(2)
5.8 Self-sustaining growth
143(4)
5.9 The PIE ratio
147(6)
5.10 Share price determination in practice
153(2)
5.10.1 Fundamentals as a basis for share valuation
153(1)
5.10.2 The psychology of the market
154(1)
5.11 Time for reflection: What have we learned?
155(10)
6 Shareholders' Required Rate of Return (The Cost of Equity Capital) 165(28)
6.1 Introduction
167(1)
6.2 The CAPM as a determination of the discount rate
167(6)
6.3 Empirical issues with the CAPM
173(3)
6.4 Empirical tests of the CAPM
176(3)
6.5 Assessment of the CAPM
179(4)
6.6 The Fama and French three-factor (FF-3F) model
183(4)
6.7 Time for reflection: What have we learned?
187(6)
7 Accounting Statements and Ratio Analysis 193(32)
7.1 Introduction
194(2)
7.2 The statements
196(11)
7.2.1 The income statement (Table 7.1)
197(2)
7.2.2 The balance sheet (Table 7.2)
199(3)
7.2.3 The self-locking nature of the Income Statement and Balance Sheet
202(1)
7.2.4 The statement of cash flows (Table 7.3)
203(4)
7.3 Ratio analysis (Table 7.4)
207(11)
7.3.1 The main ratios
209(8)
7.3.2 Du pont ratio analysis
217(1)
7.4 Common size analysis
218(2)
7.5 Time for reflection: What have we learned?
220(5)
8 Financial Leverage 225(32)
8.1 Introduction
226(1)
8.2 Leverage of the firm's capital structure
227(3)
8.3 Debt and the economy
230(1)
8.4 Derivation of Modigliani and Miller's Propositions I and II
231(4)
8.5 The Modigliani and Miller propositions and the CAPM
235(3)
8.6 Consistency of the discounting of dividends model with leverage and the CAPM and MM propositions
238(5)
8.7 The MM propositions challenged
243(1)
8.8 An optimal debt leverage
244(2)
8.9 Time for reflection: What have we learned?
246(11)
9 Valuation of Cash Flows 257(30)
9.1 Introduction
258(3)
9.2 Methods of discounting: The CFE (kE) and FCF (WACC) approaches
261(6)
9.2.1 The cash flow to equity (CFE) approach
261(3)
9.2.2 The operating free cash flow (FCF) discounted by the WACC approach
264(3)
9.3 Additional examples demonstrating consistency of the discounting methods
267(5)
9.4 The WACC as industry-favored approach
272(1)
9.5 Key elements of the cash flow
273(4)
9.6 Time for reflection: What have we learned?
277(10)
10 Currency Exchange Rates 287(30)
10.1 Introduction
289(1)
10.2 The forces driving an exchange rate
290(5)
10.3 Manipulating exchange rates
295(2)
10.3.1 Currency conversion and the principle of dimensional consistency
295(1)
10.3.2 Direct and indirect quotes for currencies
296(1)
10.4 A model of exchange rates in response to interest rates and inflation: The parity conditions
297(12)
10.4.1 Purchasing power parity (PPP), relative purchasing power parity (RPPP)
297(6)
10.4.1.1 Relative purchasing power parity (RPPP) and percentage changes in currencies
298(2)
10.4.1.2 Relative purchasing power parity (RPPP) and "follow through"
300(3)
10.4.1.3 A reality check on purchasing power parity (PPP)
303(1)
10.4.2 Interest rate parity (IRP)
303(3)
10.4.2.1 A reality check on interest rate parity (IRP)
305(1)
10.4.3 Forward rate parity (FRP)
306(19)
10.4.3.1 The currency premium (or discount)
309(1)
10.5 Time for reflection: What have we learned?
309(8)
11 Derivatives Instruments: Hedging (Speculating on) Currency Risk 317(36)
11.1 Introduction
318(1)
11.2 Forward and future contracts
319(4)
11.3 Options
323(2)
11.4 Options and foreign currencies
325(8)
11.4.1 Buyer of a call
326(3)
11.4.2 Seller (writer) of a call
329(2)
11.4.3 Buyer of a put
331(1)
11.4.4 Seller (writer) of a put
332(1)
11.5 Price discovery: Intrinsic and time value
333(1)
11.6 Speculating on foreign exchange
333(3)
11.7 Hedging corporate foreign exchange exposure
336(6)
11.8 Time for reflection: What have we learned?
342(11)
12 Investment Decision-Making: Theory and Practice 353(12)
12.1 Introduction
354(1)
12.2 Investment decision making
355(7)
12.3 Time for reflection: What have we learned?
362(3)
13 Equity Value and Personal Taxes 365(12)
13.1 Introduction
366(1)
13.2 Share returns and personal taxes
366(5)
13.3 Personal taxes and an imputation tax system
371(2)
13.4 Time for reflection: What have we learned?
373(4)
14 Financial Leverage (Revisited) 377(32)
14.1 Introduction
379(1)
14.2 The tax deductibility of the firm's interest payments
379(7)
14.3 Alternative to Modigliani and Miller's derivation of the corporate tax shield (PVTS)
386(8)
14.4 The corporate tax shield challenged
394(2)
14.5 Adjustment to Equations (14.8)-(14.9) and (14.11)-(14.12)
396(3)
14.6 Time for reflection: What have we learned?
399(10)
15 Valuation of the Firm's Cash Flows (Revisited) 409(28)
15.1 Introduction
410(1)
15.2 Alternative methods of discounting
410(3)
15.2.1 The adjusted present value (APV) method
411(1)
15.2.2 The capital cash flow (CCF) method
412(1)
15.3 Algebraic consistency between the adjusted present value (APV) and capital cash flow (CCF) methods of discounting and the CFE and WACC methods (of
Chapter 9)
413(11)
15.3.1 The APV method
414(2)
15.3.2 The CCF method
416(8)
15.4 Recalculation of illustrative examples 9.3-9.5 from
Chapter 9 with the APV and CCF (kAv) methods
424(7)
15.5 Time for reflection: What have we learned?
431(6)
16 Ethical Behavior 437(6)
16.1 Introduction
438(1)
16.2 The meaning of ethical behavior
439(3)
16.3 Time for reflection: What have we learned?
442(1)
Solutions to Multiple Choice Questions and Illustrative Examples 443(44)
Index 487