TAILIEUCHUNG - Ebook Applied corporate finance: Part 2

(BQ) Part 2 book "Applied corporate finance" has contents: Capital structure - sell it off; the rocky marriage of risk and return; capital budgeting decisions - The end of the roads meets the beginning of another, this is so WACC! | Chapter 6 Capital Structure: Sell It Off! In this chapter, we will examine the other primary component of capital structure. Most individuals understand the basic idea of stocks and stock markets, and for good reason. Equity markets are not just the focus of financial professionals. The idea that individual investors can own a piece of a publicly traded firm is probably the most important concept in investments as it allows firms to have a direct influence on individual wealth. In this chapter, we will cover the characteristics of equity, learn how to theoretically value stock, and most importantly, discuss equity from the company’s perspective. Public and Private Equity We will follow the same basic pattern as with the previous chapter by beginning as broadly as possible and then work on isolating details. We first need to understand the difference between private and public equity. Also, we need to define equity in the context of capital structure. From the firm’s perspective, equity can be internally or externally generated. Internally generated equity is derived from the firm’s operations and is the proportion of the firm’s income they retain as earnings (hence, retained earnings). Externally generated equity represents ownership in the firm, evidenced by shares of stock that are “sold” to investors. The investors exchange the stock for ownership in the firm. The firm is then free to use the proceeds from the sale of the stock in firm activities, and the shareholders would benefit as a by-product of any stock price increase. Likewise, they would suffer from any price decrease. A firm’s equity can come from a variety of sources, but for our purpose, we are most concerned with equity obtained from individual investors. Recall the balance sheet identity. Assets represent the total value of the firm’s possessions, while liabilities represent the total amount of firm’s debt obligations. Thus, equity represents the remaining value in the firm once liabilities have been paid.

• Tài chính doanh nghiệp
• Applied corporate finance
• Corporate finance
• Capital structure
• The rocky marriage
• Capital budgeting decisions
• The beginning of another
• This is so WACC
• In the beginning
• Financial statement analysis
• Cash flow
• The right frame of time
• Decision making
• Risk measurement
• Hurdle rates in practice
• Measuring return
• Project interactions
• Side costs
• The optimal financial mix
• The financing details
• Dividend policy
• financial markets
• monetary
• Business Administration
• Financial Management
• FINANCING DECISION
• Chi phí khối lượng lợi nhuận
• Chi phí sử dụng vốn bình quân
• Mô hình phân tích CVP
• Phương diện tài chính WACC