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Stock Markets And Corporate Finance: A Primer [Pehme köide]

(Ton Duc Thang Univ, Vietnam)
  • Formaat: Paperback / softback, 372 pages
  • Ilmumisaeg: 02-Sep-2022
  • Kirjastus: World Scientific Europe Ltd
  • ISBN-10: 1800611609
  • ISBN-13: 9781800611603
Teised raamatud teemal:
  • Formaat: Paperback / softback, 372 pages
  • Ilmumisaeg: 02-Sep-2022
  • Kirjastus: World Scientific Europe Ltd
  • ISBN-10: 1800611609
  • ISBN-13: 9781800611603
Teised raamatud teemal:

Stock Markets and Corporate Finance: A Primer examines the nature of the stock market and its implications for corporate management. In the historical context of financial institutions and business finance, students are stimulated to learn that traditional totems of corporate finance can no longer be presented as dogma, but rather as exceedingly frail models of reality. At the core of this text is the philosophy that financial institutions and corporate/business finance are more satisfactorily understood in relation to one another. This revised text from the 2017 Stock Markets and Corporate Finance has allowed for a reshaping of the material with the deletion of a number of chapters considered ""interesting"" but overly academic. This additional space has allowed for an update on the chapter ""Financial Institutions and A History of Stock Markets"" as well as accounting for the circumstances of a post-COVID-19 era. The chapter ""Financial Planning and Working Capital"" has been reworked to demonstrate how a firm's financial management team might interrogate its financial accounts to assess the viability of the firm and the management of its working capital. From reading this book, the reader will achieve insight into the behavior and importance of financial institutions and firms as they are presented in the media, and how they impact on their own lives. Exercises and solutions are designed to re-enforce chapter material, while animated PowerPoint presentations and short videos are available as supplementary material to the book.

Preface v
About the Author vii
Welcome to the Revised and Amended Stock Markets and Corporate Finance xv
The Important Formulas xxi
Part A
1(192)
1 Introduction: Stock Markets, Investments and Corporate Financial Decision-Making
3(8)
2 Financial Institutions and a History of Stock Markets
11(50)
2.1 The supporting cast for financial markets
12(11)
2.2 Prologue: The early background economy
23(38)
2.2.1 Act I: The 1980s bull market and Black Monday
25(7)
2.2.2 Act II: The dot.com bubble and Black Friday
32(6)
2.2.3 Act III: Securitisation and the global financial crisis
38(9)
2.2.4 Act IV: Market recovery, COVID-19 and cash injections: From here to eternity
47(14)
3 The Time Value of Money and Financial Planning
61(30)
3.1 Introduction
62(1)
3.2 The time-value of money: Discrete returns, compounding, and discounting
63(4)
3.2.1 Percentages as fractions
63(1)
3.2.2 Single period growth
64(1)
3.2.3 Multiple period growth
65(1)
3.2.4 Discounting
66(1)
3.3 Perpetuities and annuities
67(5)
3.3.1 A growing perpetuity
67(1)
3.3.2 A perpetuity
68(1)
3.3.3 Present value of an annuity
69(1)
3.3.4 Future value of an annuity
70(2)
3.4 Quarterly (and semi-annual, etc.) payments
72(2)
3.5 Life policies
74(2)
3.6 Planning for retirement
76(3)
3.7 Real rates of return
79(2)
3.8 Planning for retirement allowing for money purchasing power
81(2)
3.9 Repayment of a mortgage
83(2)
3.10 Time for reflection: What have we learned?
85(6)
4 Market Debt, Interest Rates, and Bond Valuation
91(28)
4.1 Introduction
92(1)
4.2 Short-term financing: The money markets
93(4)
4.2.1 Finance companies
96(1)
4.3 The role of a central bank in determining interest rates
97(1)
4.4 Long-term debt
98(2)
4.5 Valuation of bonds
100(4)
4.6 Required discount rate and risk of default
104(2)
4.7 Interrogating bonds
106(6)
4.8 Time for reflection: What have we learned?
112(7)
5 The Valuation of Equity Shares
119(38)
5.1 Introduction
120(1)
5.2 Share price response to new equity issues
121(5)
5.3 The discounting of dividends model of share valuation
126(4)
5.4 A firm with a fixed growth
130(2)
5.5 A firm with zero (real) growth
132(2)
5.6 Motivation for dividends
134(2)
5.7 Self-sustaining growth
136(5)
5.8 The P/E ratio
141(5)
5.9 Share price determination in practice
146(1)
5.10 Time for reflection: What have we learned?
147(10)
6 Shareholders' Required Rate of Return (The Cost of Equity Capital)
157(22)
6.1 Introduction
159(1)
6.2 The CAPM as a determination of the discount rate
159(6)
6.3 Empirical issues with the CAPM
165(3)
6.4 Empirical tests of the CAPM
168(2)
6.5 The tournament nature of investing as an explanation for the ineffectiveness of the CAPM
170(1)
6.6 The Fama and French three-factor (FF-3F) model
171(2)
6.7 Time for reflection: What have we learned?
173(6)
7 Statistical Patterns of Stock Market Returns
179(14)
7.1 Introduction
180(1)
7.2 Building a model of risk and return
181(3)
7.3 Empirical observations of stock market outcomes and the investment time horizon
184(3)
7.4 The "behavioural" nature of the market: Bull and bear markets
187(3)
7.5 Time for reflection: What have we learned?
190(3)
Part B
193(120)
8 Financial Leverage
195(32)
8.1 Introduction
196(1)
8.2 Leverage of the firm's capital structure
197(3)
8.3 Debt and the economy
200(1)
8.4 Derivation of Modigliani and Miller's Propositions I and II
201(3)
8.5 The Modigliani and Miller propositions and the CAPM
204(4)
8.6 Consistency of the discounting of dividends model with leverage and the CAPM and MM propositions
208(5)
8.7 The MM propositions challenged
213(1)
8.8 An optimal debt leverage
214(3)
8.9 Time for reflection: What have we learned?
217(10)
9 Valuation of Cash Flows
227(32)
9.1 Introduction
228(3)
9.2 Methods of discounting: The CFE (kE) and FCF (WACC) approaches
231(6)
9.2.1 The cash flow to equity (CFE) approach
231(3)
9.2.2 The operating free cash flow (FCF) discounted by the WACC approach
234(3)
9.3 Additional examples demonstrating consistency of the discounting methods
237(6)
9.4 The WACC as industry-favoured approach
243(1)
9.5 Key elements of the cash flow
244(3)
9.6 Time for reflection: What have we learned?
247(12)
Appendix
248(11)
10 Investment Decision-Making: Theory and Practice
259(12)
10.1 Introduction
260(1)
10.2 Investment decision-making
261(7)
10.3 Time for reflection: What have we learned?
268(3)
11 Financial Planning and Working Capital: The Firm's Financial Statements
271(36)
11.1 Introduction
273(2)
11.2 The statements
275(11)
11.2.1 The Income Statement (Table 11.1)
275(3)
11.2.2 The Balance Sheet (Table 11.2)
278(4)
11.2.3 The self-locking nature of the Income Statement and Balance Sheet
282(1)
11.2.4 The Statement of Cash Flows (Table 11.3)
283(3)
11.3 Ratio analysis (Table 11.4)
286(12)
11.4 Du Pont ratio analysis
298(3)
11.4.1 The Du Pont analysis of Return on Assets (ROA) = Net income/total assets
298(1)
11.4.2 The Du Pont analysis of Return on Equity (ROA) = Net income/shareholders equity
299(2)
11.5 Time for reflection: What have we learned?
301(6)
12 Ethical Behaviour
307(6)
12.1 Introduction
308(1)
12.2 The meaning of ethical behaviour
309(3)
12.3 Time for reflection: What have we learned?
312(1)
Solutions to Multiple Choice Questions and Illustrative Examples 313(32)
Index 345