Description
Book SynopsisGlen Arnold runs an investment fund and previously held positions as Professor of Finance and Professor of Investing. In addition to the textbook Modern Financial Markets and Institutions, he has authored leading investment and banking books, including The Financial Times Guide to Investment, The FT Guide to Banking, and The FT Guide to Value Investing.
Deborah Lewis is a Senior Teaching Fellow at the University of Bath. As a Director of Studies for the Bath MBA programme, featured in the top 100 of the FT Global MBA 2018 Ranking, she ensures the material is useful both for the student and the practitioner. Deborah's previous commercial experience allows her to blend academic theory with professional application.
Table of ContentsBrief contents Topics covered in the book xxi Introduction to the book xxiii Acknowledgements xxix Part 1 Introduction 1
- The financial world 2
Part 2 The investment decision 49
- Project appraisal: net present value and internal rate of return 50
- Project appraisal: cash flow and applications 89
- The decision-making process for investment appraisal 125
- Project appraisal: capital rationing, taxation and inflation 151
Part 3 Risk and return 173
- Risk and project appraisal 174
- Portfolio theory 222
- The Capital Asset Pricing Model and multi-factor models 268
Part 4 Sources of finance 327
- Stock markets 328
- Raising equity capital 365
- Long-term debt finance 422
- Short- and medium-term finance, treasury and working capital management 474
- Stock market efficiency 542
Part 5 Corporate value 611
- Value-based management 612
- Value-creation metrics 658
- The cost of capital 704
- Valuing shares 738
- Capital structure 787
- Dividend policy 840
- Mergers 868
Part 6 Managing risk 927
- Derivatives 928
- Managing exchange-rate risk 974
Appendices A:1
- Future value of £1 at compound interest A:2
- Present value of £1 at compound interest A:3
- Present value of an annuity of £1 at compound interest A:4
- Future value of an annuity of £1 at compound interest A:5
- Areas under the standardised normal distribution A:6
- Answers to the mathematical tools exercises in Chapter 2, Appendix 2.1 A:7
Glossary G:1 Bibliography B:1 Index I:1
