Оглавление
Michael Taillard. Corporate Finance For Dummies
Corporate Finance For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Corporate Finance For Dummies Cheat Sheet” in the Search box. Table of Contents
List of Tables
List of Illustrations
Guide
Pages
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
New to this Edition
Beyond the Book
Where to Go from Here
What’s Unique about Corporate Finance
The Tale of Corporate Finance
Telling a Story with Numbers
Characterizing Motivations
The role of financial institutions
Defining investing
Setting the Stage
Introducing Finance Land
Visiting the Main Attractions in Finance Land
Corporations
Depository institutions
Commercial banks
Savings institutions
Credit unions
Insurance companies
Health insurance companies
Life insurance companies
Property-casualty insurance companies
Securities firms
Investment banks
Broker-dealers
Underwriters
Funds
Financing institutions
Sales financing institutions
Personal credit institutions
Business credit institutions
Loan sharks and subprime lenders
Exchanges
Regulatory bodies
Federal Reserve and U.S. Treasury
Federal Reserve
U.S. Treasury
Getting a Job in Finance Land
Accounts payable and/or receivable
HR and payroll
Analysts
Auditors
Adjusters
Bookkeepers and accountants
Modelers and scientists
Economists and consultants
Traders
Treasurers
Bankers and more
Visiting the Finance Land Information Center
Internet sources
Print sources
Human sources
Pitching Your Story for Money
Raising Capital
Diving into Debt
Asking the right people for money
Making sure the loan pays off in the long run
Looking at loan terms
Schmoozing Investors
Selling stock to the public
Looking at the different types of stock
Having Your Wish Granted
Making a Statement
Staying Balanced
Introducing the Balance Sheet
Evaluating the Weights on the Balance Scale
Understanding Assets
Current assets
Cash and cash equivalents
Marketable securities
Accounts receivable
Inventories
Income tax assets
Prepaid accounts
Other current assets
Long-term assets
Investments
Property, plant, and equipment
Depreciation
Straight-line and unit-of-production depreciation
SUM OF YEARS DEPRECIATION
Intangible assets
Other assets
Learning about Liabilities
Current liabilities
Accounts payables
Unearned income
Accrued compensation and accrued expenses
Deferred income tax
Current portion of long-term debt
Other current liabilities
Long-term liabilities
Notes payable
Capital lease obligations
Eyeing Owners’ Equity
Preferred shares
Common shares
Treasury shares
Additional paid-in capital
Retained earnings
Finding Financial Zen
Incoming Income
Adding It Up
SINGLE-STEP INCOME STATEMENTS
Gross profit
Net sales
Cost of goods sold
Gross margin
Operating income
Earnings before interest and taxes (EBIT)
Net income
Earnings per share
Supplemental notes
Putting the Income Statement to Good Use
Going with the (Cash) Flow
Moving Along Three Smooth Flows
Operating cash flows
Investing cash flows
Financing cash flows
Combining the three types of operations to get the net change in cash
RECONCILIATION OF NET EARNINGS AND ASSETS TO CASH BY OPERATING ACTIVITIES
Reaching Your Destination
Mastering Metrics
Paying the Bills
Days sales in receivables
Accounts receivables turnover
Accounts receivables turnover in days
Days sales in inventory
Inventory turnover
Inventory turnover in days
Operating cycle
Working capital
Current ratio
Acid test ratio (aka Quick Ratio)
Cash ratio
Sales to working capital
Operating cash flows to current maturities
Working Your Assets
Net profit margin
Total asset turnover
Return on assets
Operating income margin
Operating asset turnover
Return on operating assets
Return on total equity
Return on common equity
DuPont equation
Fixed asset turnover
Return on investment
Gross profit margin
Operating ratio
Percent earned on operating property
Operating revenue to operating property ratio
Long-term debt to operating property ratio
Calculating Capital
Sizing Up Shareholders
Financial leverage
Earnings per common share
Operating cash flows per share
Price to earnings ratio
Percentage of earnings retained
Dividend payout
Dividend yield
Book value per share
Cash dividend coverage ratio
Banking on Metrics
Earning assets to total assets ratio
Net interest margin
Loan loss coverage ratio
Equity to total assets ratio
Deposits times capital
Loans to deposits ratio
Keeping Debt Healthy
Times interest earned
Fixed charge coverage
Debt ratio
Debt to equity ratio
Debt to tangible net worth
Operating cash flows to total debt
Equity multiplier
Valuations on the Price Tags of Business
Determining Present and Future Values: Time Is Money
Losing Value over Time
Inflation
Interest rates
Predicting Future Value
Simple interest
Compound interest
Calculating the Present Value
A closer look at earnings
Discounted cash flows
Calling in the Cavalry
Budgeting Capital
Rating Your Returns
Looking at costs
Calculating revenue
Calculating the accounting rate of return
Making the most of the internal rate of return through modification
Netting Present Values
Calculating NPV over time
Managing the project’s value
Paying It Back
Allocating Capital
Calculating the equivalent annual cost
Considering liquid assets
Managing Projects
Value schedule metrics
Schedule variation
Schedule performance
Budget metrics
Cost variance
Cost performance
Estimate at completion
To-complete performance
Bonding Over Business
Exploring the Different Types of Bonds
Considering corporate bonds
Gauging government bonds
Treasury bonds
TREASURY NOTES
TREASURY BILLS
TREASURY TIPS
TREASURY STRIPS
Municipal bonds
Clipping coupon bonds
Backing up with assets
Converting bonds
Calling it in with callable bonds
Putting in the effort: puttable bonds
Registering the bearer
Counting on forgiveness with catastrophe bonds
Junking bad bonds
Reviewing Bond Rates
HOW JUNK BONDS GOT THEIR REPUTATION
Reading Bond Information
Understanding Bond Valuation
Savvy Stock Sales
Exchanging Stocks
Looking at the Different Types of Orders
Market order
Stop and limit orders
Pegged order
Time-contingent order
Comparing Long and Short Stocks
Buying long
Buying on margin
Selling short
Defining Caps and Sectors
Caps
Sectors
Raging Bulls and Grizzly Bears
Beating Stock Indices?
Imagining the Value of Stocks
Surveying equity valuation models
Checking out corporate analysis
Evaluating industry performance
Factoring in stock market fluctuations
Considering macroeconomics
Pricing Probability from Derived Value
Deriving Value
Keeping Your Options Open
Choosing between put and call
Valuing an option
Paying It Forward
Agreeing to forward
Valuing a forward
Standardizing the Future
Predicting futures
Valuing futures
Swapping Numbers
Managing risk with swaps
Generating revenue with swaps
Valuing a swap
A Wonderland of Risk Management
Managing Uncertainty
Understanding that Risk Is Unavoidable
Risking Your Interest with Inflation
Minimizing Market Risk
Giving Credit Where It’s Due
Getting Shady with Off-Balance-Sheet Risk
Factoring in Foreign Exchange Risk
Transaction risk
Translation risk
Other foreign exchange risk
Identifying Operating Risk
Looking at Liquidity Risk
Sorting Your Customer’s Laundry
Through the Looking Glass of Modern Portfolio Theory
Delving into Portfolio Basics
Surveying portfolio management strategies
Looking at modern portfolio theory
Understanding passive versus active management
Joking about Market Efficiency
Risking Returns
Looking at the trade-off between risk and return
Diversifying to maximize returns and minimize risk
Considering risk aversion
Determining the “right” amount of risk aversion
Measuring a company’s risk aversion
Measuring risk
Capital asset pricing model (CAPM)
BETA
ASSUMPTIONS OF PERFECTION
Arbitrage pricing theory
Optimizing Portfolio Risk
Reaching the efficient frontier
Innovating risk management
Financially Engineering Yourself Deeper Down the Rabbit Hole
Making Securities Out of Anything
You can securitize everything
Slicing securities into tranches
Splicing Hybrids
The mixed-interest class of hybrids
Single asset class hybrids
Indexed-back CDs
Bundling Assets
Pass-through certificates
Multi-asset bundles
Unbundling
Exploring Exotics
Options
Swaps contracts
Loans
Engineering Finances
FINANCIAL ENGINEERING
Moving into Computational Finance
Changing the face of trading
PROJECT EXPRESS
Banking from beyond
Building quantitative algorithms
Weighing Capital
Calculating the Cost of Capital
Measuring cost of capital, the WACC way
Factoring in the cost of debt
Looking at the cost of equity
Dividend policy
GETTING WARREN BUFFETT’S TAKE
Choosing the Proper Capital Structure
Financial Management
Assessing Financial Performance
Analyzing Financial Success
Using Common-Size Comparisons
Vertical common-size comparisons
Horizontal common-size comparisons
Cross comparisons
Rate-of-change cross comparison
Time-distribution cross comparison
Performing Comparatives
Comparison over time
Comparison against the industry
Using industry averages
Comparing changes in the industry
Determining the Quality of Earnings
Accounting concerns
Inventory accounting
Depreciation
Cost recognition
Sources of cash flows
Temporary transactions
Volatile income sources
Assessing Investment Performance
Conventional evaluations
Arithmetic rate of returns
Average rate of returns
Time-weighted rate of returns
Risk adjusted return on capital
Forecasting Finances
Seeing with Analytical Eyes
Collecting data
Knowing where to look
Comparing your data
Finding an average
Measuring distribution
Range
Standard deviation
Calculating probability
Viewing the Past as New
Finding trends and patterns
Looking at regression
Knowing what to do with correlations
Doing a regression analysis
Seeing the Future Unclouded: Forecasting
Using statistics and probability
CALCULATING THE ALTMAN’S Z-SCORE
Using reference class forecasting
Evaluating forecast performance
Getting the Deets on M&A
Dissecting M&A
Diversification
Geographic expansion
Economies of scale
Economies of scope
Vertical integration
Horizontal integration
Conglomerate integration
Elimination of competitors
Manager compensation
Synergistic operations
Moving Beyond the M and the A
Mergers
THE VALMET/NELES MERGER
Acquisitions
THE AMD ACQUISITION OF XILINX
Buyouts
Factoring
Joint ventures
Partnerships
Licensing agreements
Hostile takeovers
Divesting Is Investing
Measuring What a Business Is Worth to You
Future cash flows
Control premiums
Company worth by comparison
Cash-flow evaluation
Measures of market share
Financing M&A
The Part of Tens
Ten Things You Need to Know about International Finance
There’s No Such Thing as a Trade Imbalance
CHEAP LABOR AND THE U.S. TRADE DEFICIT
Purchasing Power and Exchange Rates Are Different Things
Interest Rates and Exchange Rates Have a Muddled Relationship
Spot Rate Isn’t the Only Type of Currency Transaction
Diversification Can’t Completely Eliminate Risk Exposure
Cross-Listing Allows Companies to Tap the World’s Resources
Outsourcing Is a Taxing Issue
Politics Complicate Your Life
Cultural Understanding Is Vital
Cryptocurrencies Come with Risk
Ten Things You Need to Understand about Behavioral Finance
Making Financial Decisions Is Never Rational
Being Irrational Can Be Entirely Rational
Framing Affects Your Decision-Making Prowess
Making Sound Financial Decisions Involves Identifying Logical Fallacies
Getting Emotional about Financial Decisions Can Leave You Crying
Financial Stampeding Can Get You Trampled
Letting Relationships Influence Finances Can Be Ruinous
Satisficing Is Good Enough
Prospect Theory Explains the Improbable
Being Biased Is Human Nature
Index. A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
About the Author
Dedication
WILEY END USER LICENSE AGREEMENT
