About the book
This book is a comprehensive introduction to the subject of corporate finance and uses an interactive approach to discuss the topics clearly with the readers. In this book, the authors ask a series of questions to which answers are provided. This kind of interactive approach helps readers visualize the concepts into the context of real-world applications.
The book covers different topics of corporate finance, such as financial policy, capital structure theory, investment, and more.
The authors made good use of legitimate cases to explain better how one aspect of corporate finance is applicable to the said event. More importantly, they use significant events to bring a sense of familiarity to the reader and to allow them to do further research about the topic easily. These real-world cases materialize the application of financial skills in the corporate world and bring readers closer to the concepts.
The book is overall an interesting read, with a mix of corporate Finance and financial history in one. The additional information on tax code and bankruptcy, as included in this second edition, establishes the book and the writers as among the best accounting guides.
About the Author
PAUL ASQUITH is a professor of Finance at MIT’s Sloan School and garnered the Gordon Y. Billard award. He is an expert in corporate finance and has written about various areas of corporate finance such as mergers, equity issues, LBOs, and dividend policy.
LAWRENCE A. WEISS is a professor of International Accounting at Tufts University. He specializes in Accounting and Finance. He has written about many financial topics such as corporate bankruptcy, international accounting, firm performance, and mergers.
Table of Contents
About the Authors
CH. 1: Introduction
PART ONE: Financial Health of a Firm and Cash Flow Management
CH. 2: Determining a Firm’s Financial Health (PIPES-A)
CH. 3: Pro Forma Forecasts (PIPES-B)
CH. 4: The Impact of Seasonality on a Firm’s Funding (PIPES-C)
PART TWO: Firm Financing and Financial Policies
CH. 5: Why Financing Matters (Massey Ferguson)
CH. 6: An Introduction to Capital Structure Theory
CH. 7: Capital Structure Decisions (Marriott Corporation and Gary Wilson)
CH. 8: Investment Decisions (Marriot Corporation and Gary Wilson)
CH. 9: Financial Policy Decisions (AT&T: Before and After the 1984 Divestiture)
CH. 10: The Impact of Operating Strategy on Corporate Finance Policy (MCI)
CH. 11: Dividends and Stock Repurchases (Apple Inc.)
CH. 12: A Continuation of Capital Structure Theory
CH. 13: Restructuring and Bankruptcy: When Things Go Wrong (Avaya Holdings)
PART THREE: Investments and Valuation
CH. 14: The Time Value of Money: Discounting and Net Present Values
CH. 15: Valuation and Cash Flows (Sungreen A)
CH. 16: Valuation (Sungreen B)
CH. 17: Valuation Nuances
CH. 18: Leveraged Buyouts and Private Equity Financing (Congoleum)
CH. 19: Mergers and Acquisitions: Strategic Issues (The Dollar Stores)
CH. 20: Valuing an Acquisition: Free Cash Flows to the Firm (The Dollar Stores)
CH. 21: Understanding Free Cash Flows (The Dollar Stores)
CH. 22: Mergers and Acquisitions: Execution (The Dollar Stores)
CH. 23: Review