Capital Investment & Financing : a practical guide to financial evaluation.
Title:
Capital Investment & Financing : a practical guide to financial evaluation.
Author:
Agar, Chris f.
ISBN:
9780080476384
Personal Author:
Physical Description:
1 online resource (444 pages)
Contents:
Cover -- Contents -- List of Equations, Examples and Exhibits -- Preface -- Capital Expenditure on Tangible Assets -- Acquisitions - An Overview -- Introduction -- The Acquisition Process -- Financial Due Diligence -- Financial Evaluation -- Valuing Real Options -- Valuation Using Multiples -- Acquisition Structuring & Evaluation -- Introduction -- Purchase Price -- Purchase Consideration -- Debt -- Introduction -- Loans -- Corporate Bonds -- Equity -- Introduction -- Initial Public Offerings -- Rights Issues -- Warrants -- Long term Capital Management -- Debt -- Equity -- Short Term Capital Management -- Working Capital -- Interest Rate Risk -- Measuring Interest Rate Risk -- Managing Interest Rate Risk with Derivatives -- Forward Interest Rate Contracts -- Currency Risk -- Nature of Currency Risk -- Debt Ratios -- Pricing Techniques -- The Discount Rate for International Investment -- DCF Valuation Methods -- Valuation Approaches -- Bond Price Volatility -- Binomial Model -- Probability Distributions - Towards Black-Scholes -- Binomial Model Revisited - Setting the Parameters -- Convertible Bonds -- Warrants -- Lease Classification -- Lease Financial Evaluation -- Leveraged Leasing -- Examples -- Bibliography -- Index -- 1.2 Weighted Average Cost of Capital -- 1.5 International DCF Valuation with Parity Conditions -- 2.3 Rights Issue -- 3.1 Bond Refinancing -- 3.2 Share Buyback Impact -- 3.3 Trade Receivables Securitisation -- 4.4 Hedging with Short Term Interest Rate Futures - Two Interest Periods -- 4.5 Basis Risk for Short Term Interest Rate Futures -- 4.11 Hedging with Bond Futures II -- 4.13 Basic Pricing of an Interest Rate Swap -- 4.16 Basic Pricing of a Currency Swap -- A1 Constant, Sustainable Growth Ratio -- B1.5 NPV and IRR using 'Loan Balance' Method -- B1.6 Pre- and Post-tax IRR.
B1.9 Adjusting for multiple IRRs: Initial Investment Method -- B1.10 IRRs and Reinvestment Rates -- B1.11 NPV and Return On Invested Capital (ROIC) -- B1.12 Equity Return Components -- B1.13 Certainty Equivalents -- B2.2 Simple Interest, paid semi-annually -- B2.9 Semi-Annual Coupon Bond Price during Coupon Period -- B2.11 Valuing a Bond with Zero Coupon Discount Rates -- B2.12 Bond Price Volatility: Coupon and Maturity effect -- B2.15 Convexity: Coupon and Maturity effect -- B4.3 American Call Option - No dividends - Binomial Tree - 5 periods -- B4.6 American Put Option / Call Option - Dividends - Binomial Tree - 12 periods -- B4.10 European Call Option - No dividends - Black - Scholes Model -- B4.12 European Call Option - Convergence of Black - Scholes to Binomial -- B5.1 Real Options Valuation - Binomial Tree -- B5.8 Warrant Pricing -- C1 The Lessor's NPV and IRR (Pre-tax) -- C2 Lessor's IRR and Residual Values -- C3 Lessor's Lease vs Purchase decision -- C4 Lease Yield / Profit measures -- C5 UK Accounting - 90% Finance Lease Test -- C6 UK Lessee - Finance Lease Accounting -- C9 UK Lessor - Finance Lease Taxation -- C10 Leveraged Lease -- Exhibits -- 1.1 Transaction Process for Majority Acquisition - Key Stages -- 1.2 Financial Due Diligence - Key Questions -- 1.3 Accounting Measures used in Valuation -- 1.4 Main valuation multiples -- 1.5 Purchase Consideration - Issues -- 4.1 LIFFE June 2004 Long Gilt Contract -- C1 UK Accounting and Tax for Leases.
Abstract:
The requirement to maximise value for shareholders is at the core of any corporate investment or financing decision. The intrinsic value of proposed investments should be assessed before deciding how much capital to allocate; the benefits and risks associated with each available source of finance should be considered when capital is being raised; and capital, and any associated financial risks, should be managed in a way that continues to maximise value. At every stage, an analysis should be carried out to ensure the decision is optimal for shareholders and other capital providers. This book provides practical guidance on the application of financial evaluation techniques and methods (mainly covered in Appendices), as well as comprehensive coverage of traditional corporate finance topics, discussed in the context of capital investment, raising and management and financial risk management (using derivatives). Models, formulae and other quantitative techniques are illustrated in over 100 examples (using only basic mathematics). Topics discussed include the following: * business appraisal using financial ratios * corporate valuation (mainly discounted cash flow and real options) *investment appraisal techniques * acquisition structuring and evaluation * the nature of loans and loan agreements * features and pricing of bonds (straight and convertible) * leasing (including leveraged leasing) * equity raising (Initial Public Offerings) * long and short term capital management * basic pricing of derivatives (forwards, futures, options, swaps) * interest rate and currency risk management using derivatives Capital Investment & Financing provides a comprehensive, in-depth coverage of concepts, methods and techniques involved when evaluating acquisitions and other investments, assessing financing opportunities, and managing capital. The core chapters
provide practical guidance on key corporate finance topics; the Appendices contain more quantitative material, focusing on pricing techniques. Examples are used throughout, and an integrated case study (fictional) in the final Appendix uses many of the techniques discussed. *Discusses all key areas of corporate investing and financing, focusing on key financial issues *Concise, thorough and technical, it enables to reader to acquire knowledge effectively *Can be used in everyday analysis and decision making.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
Genre:
Electronic Access:
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