Introducing Corporate Finance

PART 1: FOUNDATIONS OF CORPORATE FINANCE
Chapter 1: Introducing the firm and its goals
Chapter preview
Goals of firms
Roles of financial managers
The principal - agent problem
Ethics in business
Challenges facing modern firms
How being a person affects decision making
Executive summary
 
Chapter 2: Business structures and Taxation
Chapter preview
Forms of business organisation
Features of Australian income taxation arrangements
Dividend imputation
Executive summary
 
Chapter 3: Business and the financial markets
Chapter preview
The roles of the financial markets
Financing business operations
Types of financial institutions
Classifying the markets
Debt and equity
Forms of debt
Equity instruments
Regulators and regulation
Executive summary
 
Chapter 4: Financial mathematics
Chapter preview
Cash flows, interest and the time value money
Simple interest
An application of simple interest: pricing commercial bills
Compound interest
Future and present value of several equal sums
Present and future value of unequal amounts
Solving time value problems executive summary
 
Chapter 5: Understanding risk and return
Chapter preview
What is return?
Calculating returns
What is risk?
The relationship between risk and return
Reducing risk
The capital asset pricing model
Executive summary
 
PART 2: INVESTMENT CHOICES
 
Chapter 6: Valuation of bonds and shares
Chapter preview
Price and value
How are security prices set?
Principles of security valuation
Valuing bonds
Valuing preference shares
Valuing ordinary shares
Price - earning ratio
Executive summary
 
Chapter 7: Cost of capital
Chapter preview
The cost of capital concept
Estimating the component costs
Under-utilisation of imputation credits
The weighted-average cost of capital
Capital structure
Evaluation changes in capital structure
Executive summary
 
Chapter 8: Planning investments - discounted cash flow