Corporate Finance For Dummies

Score your highest in corporate finance? Easy. The math, formulas, and problems associated with corporate finance can be daunting to the uninitiated. With easy-to-understand explanations and examples, Corporate Finance For Dummies introduces you to the practices of determining an operating budget, calculating future cash flow, and analyzing scenarios in a friendly, unintimidating way. Corporate Finance 101 — get a plain-English intro to corporate finance, the role it plays, and the people and organizations that utilize it That pile of numbers — make sense of reading financial statements with easy-to-understand explanations of what simple metrics are and why they're used The price tags of business — find out how to evaluate capital assets, stocks, bonds, and derivatives — all the major assets you want to know how to value Risky business — discover the 4-1-1 of risk and more cutting-edge topics in corporate finance, like futures and options Manage assets and capital — learn how to evaluate corporate financial performance, forecast future financial performance, and assess the performance of other corporations for potential mergers and acquisitions Open the book and find: The difference between finance and accounting How to raise money selling equity or debt Plain-English explanations of corporate finance jargon Metrics analysis to make financial statements useful The scoop on debt analytics Your best bond bets How to measure values of derivatives Ways to identify costs of capital Things you need to know to understand international finance Learn to: Make sense of difficult concepts Supplement your course work and boost your confidence Score your highest in a corporate finance course

Introduction 1 Part I: What’s Unique about Corporate Finance 7 Chapter 1: Introducing Corporate Finance 9 Chapter 2: Navigating the World of Corporate Finance 17 Chapter 3: Raising Money for Business Purposes  35 Part II: Reading Financial Statements as a Second Language 43 Chapter 4: Proving Worth Using the Balance Sheet  45 Chapter 5: Getting Paid with the Income Statement 57 Chapter 6: Easy Come, Easy Go: Statement of Cash Flows 65 Chapter 7: Making Financial Statements Useful with Metrics Analysis 73 Chapter 8: Measuring Financial Well–Being with Special Use Metrics 95 Part III: Valuations on the Price Tags of Business 111 Chapter 9: Determining Present and Future Values: Time Is Money 113 Chapter 10: Bringing in the CAValry for Capital Asset Valuations  121 Chapter 11: Bringing on Your Best Bond Bets 137 Chapter 12: Being Savvy When Shopping for Stock 153 Chapter 13: Measuring Valuations of the Might–Be: Derivatives 169 Part IV: A Wonderland of Risk Management 181 Chapter 14: Managing the Risky Business of Corporate Finances 183 Chapter 15: Through the Looking Glass of Modern Portfolio Theory 193 Chapter 16: Financially Engineering Yourself Deeper Down the Rabbit Hole 211 Chapter 17: Assessing Capital Structure Is WACC 227 Part V: Financial Management 235 Chapter 18: Assessing Financial Performance 237 Chapter 19: Forecasting Finances Is Way Easier than the Weather 257 Chapter 20: The 411 on M&A 271 Part VI: The Part of Tens 289 Chapter 21: Ten Things You Need to Know about International Finance 291 Chapter 22: Ten Things You Need to Understand about Behavioral Finance 305 Index 317

Michael Taillard, PhD, MBA, owns and operates OPII Schools, an award-winning national private school and tutoring company designed as a philanthropic experiment in macroeconomic cash flows as a form of urban renewal.