book

Lessons in Corporate Finance

by Paul Asquith, Lawrence A. Weiss

April 2016

Beginner

496 pages

17h 2m

English

Wiley

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Note
Two Markets: Product and CapitalThe Basics: Tools and TechniquesA Diagram of Corporate FinanceA Brief History of Modern FinanceReading This BookNotes
The Conversation with the Banker Is Like a Job InterviewStarting with the Product Market StrategyIs PIPES Profitable?Doing the MathSources and Uses of FundsRatio AnalysisThe Cash CycleSummaryNotes
First, Let’s Take a Closer Look at Ratio AnalysisPro Forma ForecastsCircular RelationshipsBack to (Forecasting) the FutureProjecting Out to 2014 and 2015Evaluating the LoanSummaryAppendix 3A: Accounting Is Not Economic RealityNotes
Monthly Pro Forma Income StatementsMonthly Pro Forma Balance SheetsA Different Picture of the FirmSummaryAppendix 4A: PIPES Monthly Pro Forma Income Statements and Balance Sheets 2014Appendix 4B: PIPES Monthly Pro Forma Income Statements and Balance Sheets 2015Notes
Product Market Position and StrategyPolitical Risk and Economies of Scale in ProductionMassey Ferguson 1971–1976Sustainable GrowthThe Period after 1976Conrad Runs AwayThe CompetitorsBack to MasseyMassey’s RestructuringPostscript: What Happened to MasseySummaryAppendix 5A: Massey Ferguson Financial StatementsNotes
Optimal Capital StructureM&M and Corporate FinanceTaxesCosts of Financial DistressThe Textbook View of Capital StructureThe Cost of CapitalSummaryNotes
Capital StructureThe Cost of CapitalHow Firms Set Capital Structure in PracticeCorporate Financial PoliciesSustainable Growth and Excess Cash FlowWhat to Do with Excess Cash?SummaryAppendix 7A: Marriott Corporation Income Statements and Balance SheetsAppendix 7B: Marriott Corporation Selected RatiosNotes

What Is the Correct Price?How Should Marriott Buy Its Shares?The Loan CovenantsThe Impact of the Product Market on Financial PoliciesThe Capital Market Impact and the FutureSummaryNotes
Background on AT&TM&M and the Practice of Corporate FinanceOld (pre-1984) AT&TNew (Post-1984) AT&TSummaryAppendix 9A: Development of AT&T Pro Formas 1984–1988 (Expected-Case)Notes
A Brief SummaryA Brief History of MCIConvertible Preferred Stock and Convertible BondsInterest Rates and Debt RatiosLeasesFinancing Needs of the New MCIMCI’s Financing ChoiceMCI PostscriptSummaryAppendix 10A: Development of MCI’s Pro Formas 1984–1988Notes
The Theory of Dividend PolicyEmpirical EvidenceApple Inc. and the Decision on Whether to Pay DividendsWhat Did Apple Do?SummaryNotes
The Tax Shield of DebtThe Costs of Financial DistressTransaction Costs, Asymmetric Information, and Agency CostsAsymmetric Information and Firm FinancingAgency Costs: Manager Behavior and Capital StructureLeverage and Agency Conflicts Between Equity and Debt HoldersThe Amount of Financing RequiredSummary: An Integrated ApproachComing AttractionsNotes
The Time Value of MoneyNet Present Value (NPV)PaybackProjects with Unequal LivesPerpetuitiesSummaryNotes
Investment DecisionsHow to Value a ProjectThe Weighted Average Cost of Capital (WACC)Terminal ValuesSummaryNotes
Sungreen’s Projected Cash FlowsThe Weighted Average Cost of Capital (WACC)Twin FirmsThe Cost of EquityThe Cost of DebtThe Final ValuationStrategic AnalysisSummaryNotes
Cash Flow NuancesCost of Capital NuancesNuances on Calculating the Cost of Equity: Levering and Unlevering BetaSeparating Cash Flows and Terminal ValuesNuances of Terminal Value MethodsOther Valuation Techniques: DCF VariationsReal Options (aka Strategic Choices)SummaryNotes
Congoleum: A Short HistoryLeading Up to the LBO: What Makes a Firm a Good LBO Target?Details of the DealPostscript: What Happened to LBOs?SummaryAppendix 17A: Congoleum’s Pro Formas with and without the LBOAppendix 17B: Highlights of the Lazard Fairness OpinionNotes
The Three Main CompetitorsRecent HistoryShopping a Firm/Finding a BuyerSummaryNotes
The Bid for Family DollarFree Cash Flows to the FirmEstimating the Cost of CapitalDiscounted Cash FlowsTerminal ValuesThe Three PiecesSummaryAppendix 19A: Family Dollar Pro Forma Financial Statements with Authors’ Constant Debt RatioNotes
Comparing the Free-Cash-Flows FormulasBack to Discount RatesOn to Free Cash Flows to EquityDiscounting the Free Cash Flows to EquitySummaryAppendix 20A: Family Dollar Pro Forma Free Cash Flows to Equity with Constant Debt RatioNotes
The Time LineManagerial DiscretionActivist ShareholderSThe Federal Trade Commission (FTC)Shareholder LawsuitsThe VoteSummaryAppendix 21.A: Key Events in the Bidding for Family Dollar during 2014 and 2015Notes
Chapters 2–4: Cash Flow Management—Financial ToolsChapters 5–12: Financing Decisions and Financial PoliciesChapters 13–21: ValuationTools and Concepts Discussed in This BookFinance as Art, Not ScienceBottom LinesAn Intelligent Approach to FinanceKeeping CurrentLarry’s Last (Really a True) StoryPaul’s Theory of PiesRules to Live ByNotes