Corporate Financial Management
By Mark De Beer
Published: 2008-9

Table of Contents

Part One - Financial Objectives and Financial Management

Chapter 1 - Financial Objectives
1 Corporate finance
2 Types of companies
3 Objectives of companies
4 Regulatory Framework for Companies
5 Valuation of companies
6 Company stakeholders
7 Management/Shareholder Relationships

Chapter 2 - An Introduction to Accounting for Non-Financial Managers
1 Conceptual Framework of Accounting
2 The Objective of Financial Reporting
3 Qualitative Characteristics of Accounting Information
4 Recognition and Measurement Criteria
5 Generally Accepted Accounting Principles
6 Constraints in Accounting
7 International Accounting Standards

Chapter 3 - Basic Financial Statements for Non-Financial Managers
1 The Management Responsibility and Audit Reports
2 The Balance Sheet or Statement of Financial Position
3 The Income Statement or Statement of Earnings
4 The Cash Flow Statement
5 Notes to the annual financial statements

Chatper 4 - Financial requirements and their impact on business planning
1 Financial management decisions
2 Financial functions in organisations
3 Areas of responsibility
4 Types of planning
5 Forecasting
6 Budgeting
7 Cash management
8 Economic and government influences on financial management
9 Problems associated with public sector financing

Part Two - Sources of Finance

Chapter 5 - Financial Markets
Introduction
1 Why do we have stock markets?
2 Financial markets
3 Advisors to share issues
4 Other sources of finance
5 The money market
6 The options market
7 Recent changes in capital markets
8 Impact of the markets on market decisions

Chapter 6 - Share capital
1 Share capital
2 Methods of issuing shares
3 Pricing shares for a stock market quotation
4 Costs of share issues
5 Share repurchases
6 Dividend policy

Chapter 7 - Loan capital and other sources of finance
1 Debt and other forms of loan capital
2 Short-term finance
3 International capital markets
4 Finance and the smaller business

Part Three - Cost of Capital and Capital Structure
Chapter 8 - Cost of capital
Introduction
1 Effects of risk on the cost of capital
2 Cost of equity
3 Cost of preference shares
4 Cost of debt capital
5 Internally generated funds
6 Weighted average cost of capital
7 Assessment of risk in the debt versus equity decision
8 Cost of capital for unquoted companies
9 Cost of capital for not-for-profit organisations

Chapter 9 - Market Efficiency Theories
1 Market efficiency

Chapter 10 - Capital structure
1 Capital leverage
2 Factors determining capital structure
3 Assumptions underlying models of capital structure
4 Traditional view of capital structure
5 Modigliani and Miller
6 A practical approach to leverage
7 Capital leverage and the effects on equity betas

Part Four - Working Capital Management

Chapter 11 - Working capital and cash management
Introduction
1 Working capital
2 Ratios associated with the assessment of working capital
3 Overtrading
4 Cash management
5 Management of short-term finance
6 Treasury function
7 Short-term investments
8 Interest rates
9 Debt portfolio management

Chapter 12 - Working capital management: planning and control
1 Management of internally generated funds
2 Management of inventory
3 Just in time (JIT) methods of procurement
4 Management of account receivables
5 Credit control
6 Creditor management

Part Five - Capital Budgeting

Chapter 13 - Planning capital investment decisions
1 Allowing for risk and uncertainty
2 Impact of inflation on investment appraisal
3 Capital rationing
4 Lease versus buy decisions
5 Post-completion appraisal
6 Adjusted present value (APV)
7 Use of the capital asset pricing model

Part Six - Business Reorganization

Chapter 14 - Mergers and acquisitions
1 Strategies for growth
2 Economic justifications for growth by acquisition
3 Valuation of the acquisition target
4 Tactics for acquisitions and mergers
5 Regulations on takeovers
6 Defence against an unwelcome takeover bid
7 Deal Protection and Break Fees
8 Consideration for mergers
9 Share exchanges and earnings per share
10 Success and failure of mergers and takeovers

Chapter 15 - Disinvestment, business failure and capital reconstruction
1 Withdrawal or abandonment
2 Management buy-outs
3 Buy-ins
4 Spin-offs
5 Sell-offs
6 Demergers
7 Going private
8 Symptoms of corporate collapse
9 Predicting company failures
10 Company liquidations
11 Capital reconstruction schemes

Part Seven - Multinational Companies

Chapter 16 - International trade
Introduction
1 Multinational companies (MNCs)
2 Control and planning in a multinational company
3 Forms of overseas investment
4 Financing in a multinational company
5 International investment decisions
6 Buying and selling foreign currency
7 International portfolios
8 Risk

Chapter 17 - International Finance
Introduction
1 How is the exchange rate for a currency determined?
2 Methods of reducing risk
3 Forward exchange contracts
4 Swap transactions
5 Futures
6 Currency options
7 Choice of hedging method
8 Leads and lags

Appendix: DiscountingTables

Answers to practice questions