Strategic Financial Management free PDF book

Strategic Financial Management free PDF book

Strategic Financial Management free PDF book

Strategic Financial Management
1st edition
© 2008 R.A. Hill & bookboon.com
ISBN 978-87-7681-425-0

Part One: An Introduction

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1. Finance – An Overview
1.1 Financial Objectives and Shareholder Wealth
1.2 Wealth Creation and Value Added
1.3 The Investment and Finance Decision
1.4 Decision Structures and Corporate Governance
1.5 The Developing Finance Function
1.6 The Principles of Investment
1.7 Perfect Markets and the Separation Theory
1.8 Summary and Conclusions
1.9 Selected References

Part Two: The Investment Decision

2 Capital Budgeting Under Conditions Of Certainty
2.1 The Role of Capital Budgeting
2.2 Liquidity, Profitability, and Present Value
2.3 The Internal Rate of Return (IRR)
2.4 The Inadequacies of IRR and the Case for NPV
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2.5 Summary and Conclusions
3. Capital Budgeting and the Case for NPV
3.1 Ranking and Acceptance Under IRR and NPV
3.2 The Incremental IRR
3.3 Capital Rationing, Project Divisibility and NPV
3.4 Relevant Cash Flows and Working Capital
3.5 Capital Budgeting and Taxation
3.6 NPV and Purchasing Power Risk
3.7 Summary and Conclusions

4. The Treatment of Uncertainty
4.1 Dysfunctional Risk Methodologies
4.2 Decision Trees, Sensitivity, and Computers
4.3 Mean-Variance Methodology

4.4 Mean-Variance Analyses
4.5 The Mean-Variance Paradox
4.5 Certainty Equivalence and Investor Utility
4.6 Summary and Conclusions
4.7 Reference

Part Three: The Finance Decision

5. Equity Valuation and the Cost of Capital
5.1 The Capitalisation Concept
5.2 Single-Period Dividend Valuation
5.3 Finite Dividend Valuation
5.4 General Dividend Valuation
5.5 Constant Dividend Valuation
5.6 The Dividend Yield and Corporate Cost of Equity
5.7 Dividend Growth and the Cost of Equity

5.8 Capital Growth and the Cost of Equity
5.9 Growth Estimates and the Cut-Off Rate
5.10 Earnings Valuation and the Cut-Off Rate
5.11 Summary and Conclusions
5.12 Selected References
6. Debt Valuation and the Cost of Capital
6.1 Capital Gearing (Leverage): An Introduction
6.2 The Value of Debt Capital and Capital Cost
6.3 The Tax-Deductibility of Debt
6.4 The Impact of Issue Costs
6.5 Summary and Conclusions
7. Capital Gearing and the Cost of Capital
7.1 The Weighted Average Cost of Capital (WACC)
7.2 WACC Assumptions
7.3 The Real-World Problems of WACC Estimation
7.4 Summary and Conclusions
7.5 Selected Reference

Part Four: The Wealth Decision

8. Shareholder Wealth and Value Added
8.1 The Concept of Economic Value Added (EVA)
8.2 The Concept of Market Value Added (MVA)
8.3 Profit and Cash Flow
8.4 EVA and Periodic MVA
8.5 NPV Maximisation, Value Added and Wealth
8.6 Summary and Conclusions
8.7 Selected References

Strategic financial management

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