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Basics of Finance An Introduction to Financial Markets, Business Finance, and Portfolio Management

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ISBN-10: 0470609710

ISBN-13: 9780470609712

Edition: 2010

Authors: Frank J. Fabozzi, Pamela Peterson Drake

List price: $80.00
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Description:

An introductory guide to the world of financeThe Basics of Finance is an accessible book for those who want to gain a better understanding of this field, but lack a strong business background. It covers essential concepts, tools, methods, and strategies in finance without delving too far into theory.Written by the experienced author team of Frank Fabozzi and Pamela Peterson Drake, this reliable resource discusses everything from financial instruments and markets to portfolio management techniques, understanding and analyzing financial statements, and different types of corporate financial strategy, planning, and policy. Explores, in a basic way, topics such as cash flow analysis, asset…    
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Book details

List price: $80.00
Copyright year: 2010
Publisher: John Wiley & Sons, Limited
Publication date: 10/1/2010
Binding: Hardcover
Pages: 672
Size: 6.50" wide x 9.25" long x 2.25" tall
Weight: 0.858
Language: English

Douglas J. Lucas is Executive Director and Head of CDO Research at UBS. He is also Chairman of The Bond Market Association's CDO Research Committee and ranked top three in CDO research in the Institutional Investor's fixed income analyst survey. Lucas has been involved in the CDO market for nearly two decades, having developed Moody's rating methodology for CDOs in 1989.LAURIE S. GOODMAN, PhD, is Managing Director and co-Head of Global Fixed Income Research at UBS. She manages U.S. Securitized Products and Treasury/Agency/Derivatives Research. Goodman has worked on Wall Street for over twenty years and is well regarded by the investor community, having won more #1 slots on the Institutional…    

Preface
Acknowledgments
What is Finance?
Capital Markets & Capital Market Theory
Financial Management
Investment management
Organization of this book
The Bottom Line
Questions
The Financial System
Financial Instruments, Markets, and Intermediaries
The financial system
The Role of Financial Markets
The role of financial intermediaries
Types of financial markets
The Bottom Line
Questions
The Financial System's Cast of Characters
Domestic nonfinancial sectors
Nonfinancial businesses
Domestic financial sectors
The foreign sector
The Bottom Line
Questions
Financial Management
Financial Statements
Accounting principles: What are they?
The basic financial statements
How are the statements related?
Why bother about the footnotes?
Accounting flexibility
U.S. accounting v. outside of the U.S
The Bottom Line
Solutions to Try it! Problems
Questions
Business Finance
Forms of business enterprise
The objective of financial management
The Bottom Line
Solutions to Try it! Problems
Questions
Financial Strategy and Financial Planning
Strategy and value
The budgeting process
Budgeting
Performance evaluation
Strategy and value creation
The Bottom Line
Questions
Dividend and Dividend Policies
Dividends
Stock distributions
Dividend policy
Stock repurchases
The Bottom Line
Solutions to Try it! Problems
Questions
The Corporate Financing Decision
Debt v. equity
Financial leverage and risk
Financial distress
The cost of capital
Optimal capital structure: Theory and practice
The Bottom Line
Solutions to Try It! Problems
Questions
Investment Management
Setting investment objectives
Establishing an investment policy
Constructing and monitoring a portfolio
Measuring and evaluating performance
The Bottom Line
Solutions to Try it! Problems
Questions
Valuation and Analysis Tools
Time Value of Money
Why the time value of money?
Calculating the future value
Calculating a present value
Determining the unknown interest rate
The time value of a series of cash flows
Annuities
Loan amortization
Interest rates and yields
The Bottom Line
Solutions to Try it! Problems
Questions
Financial Ratio Analysis
Classifying financial ratios
Liquidity
Profitability ratios
Activity ratios
Financial leverage
Return on investment
The Du Pont system
Common-size analysis
Using financial ratio analysis
The Bottom Line
Solutions to Try it! Problems
Questions
Cash Flow Analysis
Difficulties with measuring Cash Flow
Free cash flow
Usefulness of cash flows analysis
Ratio analysis
The Bottom Line
Solutions to Try it! Problems
Questions
Capital Budgeting
Investment decisions and owners' wealth
The capital budgeting process
Determining cash flows from investments
Capital budgeting techniques
The Bottom Line
Solutions to Try it! Problems
Questions
Investments
The World of Derivatives
Futures and forward contracts
Options
Swaps
The Bottom Line
Appendix: Black-Scholes option pricing model
Solutions to Try it! Problems
Questions
Financial Risk Management
The definition of risk
Enterprise risk management
Managing risks
The Bottom Line
Questions
The Theory of Portfolio Selection
Some basic concepts
Estimating a portfolio's expected return
Measuring portfolio risk
Portfolio diversification
Choosing a portfolio of risky assets
Behavioral finance and portfolio theory
The Bottom Line
Solutions to Try it! Problems
Questions
Asset Pricing Theory: The Capital Asset Pricing Model
Characteristics of an asset pricing model
Overview of the capital asset pricing model
The Bottom Line
Solutions to Try it! Problems
Questions
The Structure of Interest Rates
The base interest rate
The term structure of interest rates
Term structure of interest rates theories
Swap rate yield curve
The Bottom Line
Solutions to Try it! Problems
Questions
Valuing Common Stock
Discounted cash flow models
Relative valuation methods
The Bottom Line
Solutions to Try it! Problems
Questions
Valuing Bonds
Valuing a bond
Conventional yield measures
Valuing bonds that have embedded options
The Bottom Line
Solutions to Try it! Problems
Questions
Appendix: Solutions to End of Chapter Questions and Problems
Glossary
About the Authors
Index