McCrary Mastering Corporate Finance Essentials

The Critical Quantitative Methods and Tools in Finance
1. Auflage 2010
ISBN: 978-0-470-58891-8
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 208 Seiten, E-Book

Reihe: Wiley Finance Editions

An essential guide to corporate finance
Understanding corporate finance is a necessity for financialpractitioners who struggle every day to find the right balancebetween maximizing corporate value and reducing a firm's financialrisk.
Divided into two comprehensive parts, Mastering CorporateFinance Essentials presents the material by example, using anextended scenario involving a new business formation. In Part One,present and future value mathematics are introduced followed by anumber of applications using the tools. In Part Two, statistics asapplied to finance are examined, with detailed discussions ofstandard deviations, correlations, and how they impactdiversification.
* Through theory and real-world examples this book provides asolid grounding in corporate finance
* Other titles by Stuart McCrary include: Mastering FinancialAccounting Essentials, How to Create and Manage a Hedge Fund,and Hedge Fund Course
* Covers the essential elements of this field, from traditionalcapital budgeting concepts and methods of valuing investmentprojects under uncertainty to the importance of "real-options" inthe decision-making process
This reliable resource offers a hands-on approach to corporatefinance that will allow you to gain a solid understanding of thisdiscipline.

Autoren/Hrsg.

McCrary, Stuart A.

Inhaltsverzeichnis

Preface.
Acknowledgments.
Chapter 1 Time Value of Money Toolbox.
Introduction.
Cash Flows.
Future Value.
The Impact of Compounding Frequency on Future Value.
Equivalent Interest Rate.
Continuously Compounded Interest.
Present Value.
Formulas for Present Value and Future Value.
Conclusion.
Questions.
Chapter 2 Statistics for Finance.
Introduction.
The Meaning of Mean or Average.
Median as a Substitute for Mean.
Standard Deviation Measures the Noise.
Annualizing Variance and Standard Deviation Estimates.
The Normal Curve Is a Probability Distribution.
The Cumulative Density Function.
Measures of Dependency.
Measuring Covariance and Correlation.
Calculating Statistics in Practice.
Combining Normal Distributions.
Conclusion.
Questions.
Chapter 3 Core Finance Theories and the Cost ofCapital.
Introduction.
Risk Reduction from Diversification.
Systematic versus Unsystematic Risk.
The Market Portfolio.
The Capital Asset Pricing Model.
Using Beta to Determine the Required Return for a Stock.
Other Factor Models.
Cost of Debt.
Weighted Average Cost of Capital.
Modigliani and Miller.
Patterns of Debt and Equity in Capital Structures.
Conclusion.
Questions.
Chapter 4 Capital Budgeting Tools.
Introduction.
Three Ways to Evaluate Investments.
Calculating Net Present Value.
Net Present Value Example.
Calculating Internal Rate of Return.
Calculating Years to Payback.
Financial Decision Making.
The Annuity Formula.
Valuing an Annuity with More Frequent Cash Flows.
Using the Present Value Formula and the Annuity Formula to Valuea Bond.
Using the Annuity Formula to Value a Mortgage.
NPV Using the Annuity Formula.
Valuing a Perpetuity.
Valuing a Growth Annuity.
Introduction to Uncertainty.
Conclusion.
Questions.
Chapter 5 Techniques for Handling Uncertainty.
Introduction.
Using Scenario Analysis.
Using Monte Carlo Simulation.
Uniform Random Numbers.
Transforming Uniform Distributions.
Adding and Multiplying Two Random Numbers.
Using Random Numbers in a Budget Analysis.
Using Random Numbers in a Capital Budgeting Analysis
Conclusion.
Questions.
Chapter 6 Real Options Analysis of CapitalInvestments.
Introduction.
Why Study Options?
What Is a Real Option?
Types of Real Options.
Methods for Valuing Real Options
Conclusion
Questions.
Appendix: Day Counting for Interest RateCalculations.
Introduction.
The 30/360 Method
The Actual/Actual Method.
The Actual/360 Method.
The Actual/365 Method.
Example and Comparison of 30/360 and Actual/Actual.
Impact of Day Counting over Longer Intervals.
Calculating Calendar Intervals over Long Periods.
A Note about Continuous Compounding.
Conclusion.
Questions and Answers.
About the Author.
Index.

Über Autor(innen)

Stuart A. Mccrary is a Principal at Chicago Partners, a division of Navigant Consulting, Inc. He is a trader and portfolio manager who specializes in traditional and alternative investments, quantitative valuation, risk management, and financial software. Prior to joining Chicago Partners, McCrary was president of Frontier Asset Management, managing a market-neutral hedge fund. He also held positions with Fenchurch Capital Management as a senior options trader and CS First Boston as vice president and market maker of over-the-counter options. Prior to that, McCrary was a vice president with the Securities Groups and a portfolio manager with Comerica Bank. McCrary has published three previous books with Wiley: Mastering Financial Accounting Essentials, How to Create and Manage a Hedge Fund, and Hedge Fund Course.