Essentials of Financial Management.

• Author: Laws, Jason.
• Place / Publishing House: Liverpool : : Liverpool University Press,, 2019.; Ã2019.
• Year of Publication: 2019
• Edition: 1st ed.
• Language: English
• Physical Description: 1 online resource (186 pages)

A compact text delivering the key concepts of finance and financial markets expected on an introductory course in corporate finance. Including numerous real world exercises with spreadsheet solutions, this is a paperback edition of an Open Access e-textbook.

Table of Contents

Intro -- Contents -- Introduction -- 1 An introduction to equity markets -- 1.1 The benefits of a smooth-running stock exchange -- 1.2 The efficient market hypothesis -- 1.3 Ordinary shares -- 1.4 Preference shares -- Examples of preference dividends -- 1.5 Authorised, issued and par values -- Example -- 1.6 An initial public offering -- 1.7 Stock market indices -- 1.8 Stock market linkages -- 1.9 Rights issues -- Example -- 1.10 Stock splits -- 1.11 Share repurchase -- Example -- 2 Risk versus return -- 2.1 A primer on the variance of an asset and covariance of a pair of assets -- 2.2 The mean and variance of a portfolio -- Example -- 2.3 Finding the risk of a three- or more asset portfolio -- 2.4 Choosing the optimal portfolio -- 2.5 The risk of large portfolios -- 2.6 Market risk -- Example -- 2.7 The capital asset pricing model -- Example -- 2.8 The beta of a portfolio -- 3 The time value of money, the dividend discount model and dividend policy -- 3.1 The time value of money -- 3.2 Present values -- Example -- 3.3 Perpetuities and annuities -- 3.4 Dividend discount model -- 3.5 The Gordon growth model -- Example -- Solution -- 3.6 Two-period dividend growth model -- 3.7 Example with earnings growth -- 3.8 Real-life dividend policy -- 4 The valuation of bonds -- 4.1 Introduction to bonds -- 4.2 Bond pricing -- Example -- 4.3 The price yield curve -- 4.4 The risk of default -- 4.5. Does the yield to maturity change? -- 4.6 Bond duration -- Example -- 4.7 Characteristics of duration -- 4.8 Relationship between bond prices and duration -- Example -- 4.9 Bond convexity -- 5 Investment appraisal -- 5.1 Introduction to investment appraisal -- 5.2 The net present value decision rule -- Example -- Example -- 5.3 The relationship between NPV and discount rate -- 5.4 The internal rate of return -- Example.

5.5 Pitfalls with using the internal rate of return -- Example -- 5.6 The crossover rate -- Example -- 5.7 Payback -- 6 The weighted average cost of capital -- 6.1 Determining the appropriate cost of capital -- Example -- 6.2 The cost of debt capital -- Example -- 6.3 The weighted average cost of capital -- Example -- 6.4 Bringing this all together -- Cost of debt -- Cost of equity -- WACC -- 7 Foreign exchange risk -- 7.1 Exchange-rate risk and exchange-rate regimes -- China -- Czech Republic -- France -- United Kingdom -- United Arab Emirates -- 7.2 How big is the foreign exchange market? -- 7.3 Spot and forward markets and currency quotations -- Example -- Example -- 7.4 Calculating the forward rate -- Example -- 8 An introduction to futures trading and hedging using futures -- 8.1 Introduction to futures -- 8.2 Futures positions -- 8.3 Delivery -- Example -- 8.4 Minimum performance bond requirements -- Example -- 8.5 Hedging with futures contracts -- Example -- Example -- 8.6 Basis -- Example -- Example -- 8.7 Hedge efficiency -- Example -- 8.8 Airlines hedging price risk -- 9 Introduction to options -- 9.1 Option terminology -- 9.2 Option strategies -- 9.3 Long call purchase -- 9.4 Naked call write -- 9.5 Long put purchase -- 9.6 Naked put write -- 9.7 Long and short straddle strategies -- 9.8 The Black-Scholes option pricing model -- 9.9 FX options as foreign currency insurance -- Example -- Example -- Solution to activities -- From Certificate of Incorporation of Alphabet33F -- Bibliography -- Articles -- Books -- Websites.