Strategic financial management: Exercises

✍ Scribed by Robert Alan Hill

• Publisher: Bookboon
• Year: 2014
• Tongue: English
• Leaves: 111
• Category: Library

✦ Table of Contents

Contents
Part One An Introduction
1 Finance – An Overview
Introduction
Exercise 1.1: Modern Finance Theory
Exercise 1.2: The Nature and Scope of Financial Strategy
Summary and Conclusions
Part Two The Investment Decision
2 Capital Budgeting Under Conditions of Certainty
Introduction
Exercise 2.1: Liquidity, Profitability and Project PV
Exercise 2.2: IRR Inadequacies and the Case for NPV
Summary and Conclusions
3 Capital Budgeting and the Case for NPV
Introduction
Exercise 3.1: IRR and NPV Maximisation
Exercise 3.2: Relevant Cash Flows, Taxation and Purchasing Power Risk
Summary and Conclusions
4 The Treatment of Uncertainty
Introduction
Exercise 4.2: Decision Trees and Risk Analyses
Summary and Conclusions
Part Three The Finance Decision
5 Equity Valuation the Cost of Capital
Introduction
Exercise 5.1: Dividend Valuation and Capital Cost
Exercise 5.2: Dividend Irrelevancy and Capital Cost
Summary and Conclusions
6 Debt Valuation and the Cost of Capital
Introduction
Exercise 6.1: Tax-Deductibility of Debt and Issue Costs
Exercise 6.2: Overall Cost (WACC) as a Cut-off Rate
Summary and Conclusions
7 Debt Valuation and the Cost of Capital
Introduction
Exercise 7.1: Capital Structure, Shareholder Return and Leverage
Exercise 7.2: Capital Structure and the Law of One Price
Summary and Conclusions
Part Four The Wealth Decision
8 Shareholder Wealth and Value Added
Introduction
Exercise 8.1: Shareholder Wealth, NPV Maximisation and Value Added
Exercise 8.2: Current Issues and Future Developments
Summary and Conclusions