Mastering corporate finance essentials: the critical quantitative methods and tools in finance

Mastering Corporate Finance Essentials presents the material by example usingan extended scenario involving a new business formation. In Part One, presentvalue and future value mathematics are introduced followed a number of applications using the tools. In Part Two, statistics is introduced followed by a number of applications using these tools. Part One will explain the time value of money using a passbook savings account as the format for instruction. The math is expanded to include standard textbook formulas such as compound interestand annuities to value investment projects, mortgages, bonds, and stock prices. Part One will introduce traditional capital budgeting concepts, including internal rate of return and net present value. Part One will end with a discussion of the cost of capital tied to Modigliani s theory of debt structure and the irrelevance of dividends. Part Two will review statistics as applied to finance. This will include standard deviations, correlations, and how they impactdiversification. The bell-shaped normal distribution will be explained in some detail. Part Two will develop several methods to value investment projects under uncertainty. We will develop ways to handling many kinds of risk, including default risk and uncertain outcomes. Monte Carlo methods will be used to extend the capital budgeting tools in Part One to this uncertain world. Part Twowill introduce several real options and explain the importance of these options to smart decision-making. An Appendix would describe necessary techniques to conduct Monte Carlo simulations described in the main text.

• ISBN: 978-0-470-39333-8
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 192
• Fecha Publicación: 17/02/2010
• Nº Volúmenes: 1
• Idioma: Inglés