TAILIEUCHUNG - Ebook Corporate finance (3rd edition): Part 2

(BQ) Part 2 book "Corporate finance" has contents: Capital structure in a perfect market; payout policy; capital budgeting and valuation with leverage; financial options, option valuation, real options, raising equity capital, debt financing, working capital management,.and other contents. | Find more at 5 PART Capital Structure THE LAW OF ONE PRICE CONNECTION. One of the fundamental questions CHAPTER 14 in corporate finance is how a firm should choose the set of securities it Capital Structure in a Perfect Market will issue to raise capital from investors. This decision determines the firm’s capital structure, which is the total amount of debt, equity, and other securities that a firm has outstanding. Does the choice of capital structure affect the value of the firm? In Chapter 14, we consider this question in a perfect capital market. There we apply the Law of One Price to show that CHAPTER 15 Debt and Taxes as long as the cash flows generated by the firm’s assets are unchanged, then the value of the firm—which is the total value of its outstanding CHAPTER 16 securities—does not depend on its capital structure. Therefore, if capital Financial Distress, Managerial Incentives, and Information structure has a role in determining the firm’s value, it must come from changes to the firm’s cash flows that result from market imperfections. We explore important market imperfections in subsequent chapters. In Chapter 15, we analyze the role of debt in reducing the taxes a firm or its investors will pay, while in Chapter 16, we consider the costs of financial distress and changes to managerial incentives that result from leverage. Finally, in Chapter 17, we consider the firm’s choice of payout policy and CHAPTER 17 Payout Policy ask: Which is the best method for the firm to return capital to its investors? The Law of One Price implies that the firm’s choice to pay dividends or repurchase its stock will not affect its value in a perfect capital market. We then examine how market imperfections affect this important insight and shape the firm’s optimal payout policy. 477 Find more at C H A P T ER 14 NOTATION PV present value NPV net present value Capital Structure in a Perfect Market W HEN A FIRM

• Kinh tế học
• Corporate finance
• Capital structure
• Payout policy
• Financial options
• Option valuation
• Real options
• Raising equity capital
• Debt financing
• Working capital management
• Intermediate corporate finance
• Lecture Intermediate corporate finance
• Tài chính doanh nghiệp
• Corporate valuation
• Value based management
• Fundamentals of corporate finance
• Business organization
• Financial management
• International corporate finance
• Capital market history
• Raising capital
• Financial leverage
• Financial reporting
• Social welfare
• Forward contracts
• The stock markets
• Basic return concepts
• Portfolio theory
• Bond valuation
• Basic stock valuation
• Accounting for financial management
• Analysis of financial statements
• Financial planning
• Forecasting financial statements
• Capital budgeting
• Decision criteria
• Estimating cash flows
• Capital structure decisions
• The levered firm
• Cash management
• Financial distress
• Hedging risk
• Warrants and convertibles
• Principles of corporate finance
• Understanding options
• Valuing options
• Financial analysis
• Financial manager
• Financial institutions