In the wake of fast changing economic landscape—characterized by global financial crisis, volatile equity and bond markets, rising dominance of emerging markets and increasing investor activism—the role of financial managers in an organization has assumed significant importance.
This text aims at educating the students the fundamentals of Corporate Finance, and explains how various theories can be applied for efficient decision making for the financial managers.
The book is conceptualized on practical approach, and explores various topics in an easy and step-by-step approach, backed by numerous examples, self-test exercises and India-centric cases.
The complex financial concepts related to capital structure, risk and return analysis, valuation of financial securities, market efficiency and portfolio management have been explained in a reader-friendly manner to provide a unique learning experience.
The book is intended for the postgraduate students of Management, and practising financial managers.
Key features
• The chapters are backed by strong practical experience of in-depth financial analysis of Companies.
• Supplemented with real-life examples and scenarios in a concise and comprehensive presentation.
• India-centric cases to create an interactive class room environment.
• Topics for further research have been included on each major topic as ‘Researchable Issues’.
• Each chapter contains side-boxes to highlight the important points for quick revision.
• Each chapter is incorporated with Review Questions, Practice Exercises and Self-Test Questions to add analytical approach to the subject.
• Revision set and PPT slides provided as web support.
• Solutions Manual for instructors, available on request.
About the Author
NARENDER L. AHUJA is Professor of Finance at Institute of Management Technology (IMT), Ghaziabad. He is a Fellow/PhD from the Indian Institute of Management, Calcutta and has done the Global Colloquium program of Harvard Business School, USA. He has 40 years’ eclectic experience of teaching MBA/PGDM and ACCA (UK) courses at leading institutes including IIM Calcutta, XLRI Jamshedpur, ICAI, Faculty of Management Studies (Delhi University), International Management Institute New Delhi and others. He also has an extensive experience in executive training, case writing, research and publications and his areas of interest include corporate finance and international finance, accounting and bank management.|VARUN DAWAR is an Assistant Professor in Accounting and Finance at the Institute of Management Technology (IMT), Ghaziabad. Professor Dawar has worked extensively in financial markets as an equity analyst and fund manager with firms like JP Morgan and Max Life Insurance Limited. Professor Dawar’s research has been widely published in journals of national and international repute. |RAKESH ARRAWATIA is currently an Assistant Professor in Accounting and Finance area at Institute of Rural Management (IRMA), Anand. Professor Arrawatia, a PhD from IIT Kharagpur, has over seven years’ of experience in industry and academia and has undertaken several consulting assignments with start-ups as well as established organizations.
Table of Contents:
Preface
Part I: Introduction To Corporate Finance
1. Objectives, Scope and the Financial Environment
2. Time Value of Money
Part II: Capital Investment Decision
3. Principles of Investment Decision
4. Investment Decision DCF Methods of Appraising Projects
5. Risk Analysis for Investment Decisions
6. Investment Decision: Capital Rationing, Inflation and Real Options
Part III: Risk, Return and Valuation
7. Market Risk and Return
8. Portfolio Theory and Asset Pricing Models
9. Valuation of Bonds
10. Valuation of Shares
Part IV: Financing and Dividend Decision
11. Cost of Capital
12. Theories of Capital Structure
13. Capital Structure Decisions and Leverage Analysis
14. Dividend Payout Policy and Theories
Part V: Financial Ratios and Analysis
15. Financial Ratio and Analysis
Part VI: Working Capital Management
16. Working Capital Management 1: Operating Cycle and Financing Aspects
17. Working Capital Management 2: Inventory, Debtors and Cash Management
Part VII: Non-Profit Organizations
18. Financial Management in Non-Profit Organizations
Appendix A:
Table 1: Future Value of $1 at i % for n periods (FVIF)
Table 2: Present Value of $1 at i % for n periods (PVIF)
Table 3: Future Value of an Annuity Interest Factor (FVIFA): $1 per period at i % for n periods
Table 4: Present Value of an Annuity Interest Factor (PVIFA): $1 per period at i % for n periods
Appendix B: Answers to MCQ’s • Appendix C: Answers to Self-Test Questions
Index
