Lessons in Corporate Finance, Second Edition, A Case Studies Approach to Financial Tools, Financial Policies, and Valuation by Asquith, Paul -- Read -- Imperial Library of Trantor

Index

Cover Table of Contents About the Authors Acknowledgments Preface

NOTE

CHAPTER 1: Introduction

TWO MARKETS: PRODUCT AND CAPITAL THE BASICS: TOOLS AND TECHNIQUES A DIAGRAM OF CORPORATE FINANCE A BRIEF HISTORY OF MODERN FINANCE READING THIS BOOK NOTES

PART One: Financial Health of a Firm and Cash Flow Management

CHAPTER 2: Determining a Firm's Financial Health (PIPES-A)

THE CONVERSATION WITH THE BANKER IS LIKE A JOB INTERVIEW STARTING WITH THE PRODUCT MARKET STRATEGY IS PIPES PROFITABLE? DOING THE MATH SOURCES AND USES OF FUNDS RATIO ANALYSIS THE CASH CYCLE SUMMARY NOTES

CHAPTER 3: Pro Forma Forecasts (PIPES-B)

FIRST, LET'S TAKE A CLOSER LOOK AT RATIO ANALYSIS PRO FORMA FORECASTS CIRCULAR RELATIONSHIPS BACK TO (FORECASTING) THE FUTURE PROJECTING OUT TO 2018 AND 2019 EVALUATING THE LOAN SUMMARY APPENDIX 3A: ACCOUNTING IS NOT ECONOMIC REALITY NOTES

CHAPTER 4: The Impact of Seasonality on a Firm's Funding (PIPES-C)

MONTHLY PRO FORMA INCOME STATEMENTS MONTHLY PRO FORMA BALANCE SHEETS A DIFFERENT PICTURE OF THE FIRM SUMMARY APPENDIX 4A: PIPES MONTHLY PRO FORMA INCOME STATEMENTS AND BALANCE SHEETS, 2018 APPENDIX 4B: PIPES MONTHLY PRO FORMA INCOME STATEMENTS AND BALANCE SHEETS, 2019 NOTES

PART Two: Firm Financing and Financial Policies

CHAPTER 5: Why Financing Matters (Massey Ferguson)

PRODUCT MARKET POSITION AND STRATEGY POLITICAL RISK AND ECONOMIES OF SCALE IN PRODUCTION MASSEY FERGUSON, 1971–1976 SUSTAINABLE GROWTH THE PERIOD AFTER 1976 CONRAD RUNS AWAY THE COMPETITORS BACK TO MASSEY MASSEY'S RESTRUCTURING POSTSCRIPT: WHAT HAPPENED TO MASSEY SUMMARY APPENDIX 5A: MASSEY FERGUSON FINANCIAL STATEMENTS NOTES

CHAPTER 6: An Introduction to Capital Structure Theory

OPTIMAL CAPITAL STRUCTURE M&M AND CORPORATE FINANCE TAXES COSTS OF FINANCIAL DISTRESS THE TEXTBOOK VIEW OF CAPITAL STRUCTURE THE COST OF CAPITAL SUMMARY NOTES

CHAPTER 7: Capital Structure Decisions (Marriott Corporation and Gary Wilson)

CAPITAL STRUCTURE THE COST OF CAPITAL HOW FIRMS SET CAPITAL STRUCTURE IN PRACTICE CORPORATE FINANCIAL POLICIES SUSTAINABLE GROWTH AND EXCESS CASH FLOW WHAT TO DO WITH EXCESS CASH? SUMMARY APPENDIX 7A: MARRIOTT CORPORATION INCOME STATEMENTS AND BALANCE SHEETS APPENDIX 7B: MARRIOTT CORPORATION SELECTED RATIOS NOTES

CHAPTER 8: Investment Decisions (Marriott Corporation and Gary Wilson)

WHAT IS THE CORRECT PRICE? HOW SHOULD MARRIOTT BUY ITS SHARES? THE LOAN COVENANTS THE IMPACT OF THE PRODUCT MARKET ON FINANCIAL POLICIES THE CAPITAL MARKET IMPACT AND THE FUTURE SUMMARY NOTES

CHAPTER 9: Financial Policy Decisions (AT&T: Before and After the 1984 Divestiture)

BACKGROUND ON AT&T M&M AND THE PRACTICE OF CORPORATE FINANCE OLD (PRE-1984) AT&T NEW (POST-1984) AT&T SUMMARY APPENDIX 9A: DEVELOPMENT OF AT&T PRO FORMAS, 1984–1988 (EXPECTED-CASE) NOTES

CHAPTER 10: The Impact of Operating Strategy on Corporate Finance Policy (MCI)

A BRIEF SUMMARY A BRIEF HISTORY OF MCI CONVERTIBLE PREFERRED STOCK AND CONVERTIBLE BONDS INTEREST RATES AND DEBT RATIOS LEASES FINANCING NEEDS OF THE NEW MCI MCI'S FINANCING CHOICE MCI POSTSCRIPT SUMMARY APPENDIX 10A: DEVELOPMENT OF MCI'S PRO FORMAS, 1984–1988 NOTES

CHAPTER 11: Dividends and Stock Repurchases (Apple Inc.)

THE THEORY OF DIVIDEND POLICY EMPIRICAL EVIDENCE APPLE INC. AND THE DECISION ON WHETHER TO PAY DIVIDENDS WHAT DID APPLE DO ABOUT DIVIDENDS? WHAT HAPPENED NEXT SUMMARY NOTES

CHAPTER 12: A Continuation of Capital Structure Theory

THE TAX SHIELD OF DEBT THE COSTS OF FINANCIAL DISTRESS TRANSACTION COSTS, ASYMMETRIC INFORMATION, AND AGENCY COSTS ASYMMETRIC INFORMATION AND FIRM FINANCING AGENCY COSTS: MANAGER BEHAVIOR AND CAPITAL STRUCTURE LEVERAGE AND AGENCY CONFLICTS BETWEEN EQUITY AND DEBT HOLDERS START WITH THE AMOUNT OF FINANCING REQUIRED SUMMARY NOTES

CHAPTER 13: Restructuring and Bankruptcy: When Things Go Wrong (Avaya Holdings)

WHEN THINGS GO WRONG THE KEY ECONOMIC PRINCIPLE OF BANKRUPTCY IS TO SAVE VIABLE FIRMS WHEN SHOULD A FIRM FILE FOR BANKRUPTCY? THE RULES OF BANKRUPTCY MAINTAINING THE VALUE OF A FIRM IN BANKRUPTCY AVAYA EMERGES FROM BANKRUPTCY SUMMARY APPENDIX 13.A: THE CREDITORS COORDINATION PROBLEM NOTES

PART Three: Investments and Valuation

CHAPTER 14: The Time Value of Money: Discounting and Net Present Values

THE TIME VALUE OF MONEY NET PRESENT VALUE (NPV) PAYBACK PROJECTS WITH UNEQUAL LIVES PERPETUITIES SUMMARY NOTES

CHAPTER 15: Valuation and Cash Flows (Sungreen A)

INVESTMENT DECISIONS HOW TO VALUE A PROJECT THE WEIGHTED AVERAGE COST OF CAPITAL (WACC) TERMINAL VALUES SUMMARY NOTES

CHAPTER 16: Valuation (Sungreen B)

SUNGREEN'S PROJECTED CASH FLOWS THE WEIGHTED AVERAGE COST OF CAPITAL (WACC) TWIN FIRMS THE COST OF EQUITY THE COST OF DEBT THE FINAL VALUATION STRATEGIC ANALYSIS SUMMARY NOTES

CHAPTER 17: Valuation Nuances

CASH FLOW NUANCES COST OF CAPITAL NUANCES NUANCES ON CALCULATING THE COST OF EQUITY: LEVERING AND UNLEVERING BETA SEPARATING CASH FLOWS AND TERMINAL VALUES NUANCES OF TERMINAL VALUE METHODS OTHER VALUATION TECHNIQUES: DCF VARIATIONS REAL OPTIONS (AKA STRATEGIC CHOICES) SUMMARY NOTES

CHAPTER 18: Leveraged Buyouts and Private Equity Financing (Congoleum)

CONGOLEUM: A SHORT HISTORY LEADING UP TO THE LBO: WHAT MAKES A FIRM A GOOD LBO TARGET? DETAILS OF THE DEAL POSTSCRIPT: WHAT HAPPENED TO LBOS? SUMMARY THE WORLD KEEPS CHANGING APPENDIX 18A: CONGOLEUM'S PRO FORMAS WITH AND WITHOUT THE LBO APPENDIX 18B: HIGHLIGHTS OF THE LAZARD FAIRNESS OPINION NOTES

CHAPTER 19: Mergers and Acquisitions: Strategic Issues (The Dollar Stores)

THE THREE MAIN COMPETITORS RECENT HISTORY SHOPPING A FIRM/FINDING A BUYER SUMMARY NOTES

CHAPTER 20: Valuing an Acquisition: Free Cash Flows to the Firm (The Dollar Stores)

THE BID FOR FAMILY DOLLAR FREE CASH FLOWS TO THE FIRM ESTIMATING THE COST OF CAPITAL DISCOUNTED CASH FLOWS TERMINAL VALUES THE THREE PIECES SUMMARY APPENDIX 20A: FAMILY DOLLAR PRO FORMA FINANCIAL STATEMENTS WITH AUTHORS' CONSTANT DEBT RATIO NOTES

CHAPTER 21: Understanding Free Cash Flows (The Dollar Stores)

COMPARING THE FREE-CASH-FLOWS FORMULAS BACK TO DISCOUNT RATES ON TO FREE CASH FLOWS TO EQUITY DISCOUNTING THE FREE CASH FLOWS TO EQUITY SUMMARY APPENDIX 21A: FAMILY DOLLAR PRO FORMA FREE CASH FLOWS TO EQUITY WITH CONSTANT DEBT RATIO NOTES

CHAPTER 22: Mergers and Acquisitions: Execution (The Dollar Stores)

THE TIME LINE MANAGERIAL DISCRETION ACTIVIST SHAREHOLDERS THE FEDERAL TRADE COMMISSION (FTC) SHAREHOLDER LAWSUITS THE VOTE SUMMARY APPENDIX 22.A: KEY EVENTS IN THE BIDDING FOR FAMILY DOLLAR, 2014–2015 NOTES

CHAPTER 23: Review

CHAPTERS 2–4: CASH FLOW MANAGEMENT—FINANCIAL TOOLS CHAPTERS 5–13: FINANCING DECISIONS AND FINANCIAL POLICIES CHAPTERS 14–22: VALUATION TOOLS AND CONCEPTS DISCUSSED IN THIS BOOK FINANCE AS ART, NOT SCIENCE BOTTOM LINES AN INTELLIGENT APPROACH TO FINANCE KEEPING CURRENT LARRY'S LAST (REALLY A TRUE) STORY PAUL'S THEORY OF PIES RULES TO LIVE BY NOTES

Glossary Index End User License Agreement

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