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| List of Examples | |
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| Acknowledgments | |
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| Preface | |
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| Introduction | |
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| Accounting and Financial Statement Analysis | |
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| Introduction to Accounting | |
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| Importance of Accounting | |
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| Financial Accounting Statements | |
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| Uses and Limitations | |
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| Case Application | |
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| Francis v. United Jersey Bank (Part I) | |
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| Balance Sheet | |
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| Balance Sheet Equation | |
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| Assets and Liabilities | |
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| Equity | |
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| Historical Cost and Market Value | |
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| How the Balance Sheet Works | |
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| Working Capital and Capital Assets | |
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| McDonald's Balance Sheet | |
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| Case Application | |
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| Francis v. United Jersey Bank (Part II) | |
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| United States v. Simon | |
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| Klang v. Smith's Food & Drug Centers | |
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| Income Statement | |
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| Income Statement Equation | |
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| Accrual Accounting | |
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| How the Income Statement Works | |
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| Depreciation and Amortization | |
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| Capitalized Costs | |
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| McDonald's Income Statement | |
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| Case Application | |
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| In re WorldCom, Inc. Securities Litigation | |
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| Cash Flow Statement | |
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| "Cash is King" | |
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| Cash Flow from Operations | |
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| Cash Flow from Investing | |
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| Cash Flow from Financing | |
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| Putting the Cash Flows Together | |
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| McDonald's Cash Flow Statement | |
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| Case Application | |
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| Smith v. Van Gorkom (Part I) | |
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| In re Enron Corp. Securities, Derivative & "ERISA" Litigation | |
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| Financial Statement Analysis | |
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| Profitability Analyses | |
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| Margin analyses | |
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| Return on assets and equity (ROA and ROE) | |
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| Earnings per share (EPS) | |
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| Liquidity | |
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| Solvency | |
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| Case Application | |
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| Ryder Move Management, Inc. v. United States | |
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| Creating Financial Statements | |
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| Interconnections of Financial Statements | |
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| T-Accounts, Debits and Credits | |
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| Auditing and Certified Financial Statements | |
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| McDonald's Auditor Opinion and Reports on Internal Controls | |
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| Case Application 109SEC v. World-Wide Coin Investments, Ltd. | |
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| Principles of Finance and Valuation | |
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| Time Value of Money | |
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| What Is Finance? | |
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| Time Value of Money | |
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| Future value | |
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| Present value | |
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| Annuity | |
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| Perpetuity formula | |
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| Using time value tables | |
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| Internal Rate of Return | |
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| What's the Point? | |
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| Case Application | |
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| O'Shea v. Riverway Towing Co. | |
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| Risk and Return | |
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| Risk Aversion | |
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| Risk | |
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| Return | |
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| Diversification of Risk | |
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| Case Application | |
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| Joy v. North | |
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| Credit Lyonnais Bank Nederland, N.V. v. Pathe Comm'n Corp. | |
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| Valuation | |
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| Conceptualizing the Value of a Firm | |
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| Liquidation value | |
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| Market value | |
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| Market cap versus firm value | |
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| Theoretical value | |
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| Cost of Capital (or What Is R?) | |
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| Cost of debt | |
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| Cost of equity and CAPM | |
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| Weighted average cost of capital | |
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| Theoretical Valuation Based on Discounted Cash Flow (DCF) | |
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| Free cash flow | |
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| Discounting free cash flow | |
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| Market-Based Valuation and Multiples Analysis | |
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| Market cap multiples | |
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| Firm value multiples | |
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| Using multiples to value companies | |
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| The Law of One Price and Arbitrage | |
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| Comment on Valuation Analysis | |
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| Case Application | |
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| Tri-Continental Corp. v. Battye | |
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| Agranoffv. Miller | |
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| Cede & Co. v. Technicolor, Inc. | |
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| Economics of the Firm | |
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| Efficiency | |
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| Efficiency defined | |
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| Limited liability of shareholders | |
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| Business judgment rule | |
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| Efficiency of Firm Structure | |
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| Reason why firms exist | |
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| Separation of ownership and control | |
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| Agency cost | |
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| Capital Structure | |
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| Capital structure irrelevance (and relevance) | |
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| Agency cost and the role of debt | |
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| Leverage buyout (LBO) and debt financing | |
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| Conflict between creditors and equityholders | |
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| Case Application | |
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| Metropolitan Life Ins. Co. v. RJR Nabisco Inc. | |
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| Graham v. Allis-Chalmers Mfg. Co. | |
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| Financial Instruments and Capital Markets | |
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| Financial Instruments I (Debt and Equity) | |
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| Financial Instruments | |
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| Debt | |
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| Types of debt | |
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| Common terms and issues | |
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| Bond pricing and yield to maturity | |
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| Securitization | |
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| Preferred Stock | |
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| Hybrid nature of preferred stock | |
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| Common terms and issues | |
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| Common Stock | |
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| Common terms | |
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| Typical transactions | |
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| Case Application | |
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| S.E.C. v. W.J. Howey Co. | |
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| Sharon Steel Corp. v. Chase Manhattan Bank, N.A. | |
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| Financial Instruments II (Derivatives) | |
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| Options | |
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| Call option | |
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| Put option | |
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| Derivatives, as zero sum transactions | |
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| Forward and Futures Contracts | |
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| Hedging | |
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| Put-Call Parity | |
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| Valuing Options and the Black-Scholes Formula | |
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| Determinants of option value | |
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| Principle of Black-Scholes | |
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| Case Application | |
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| Brane v. Roth | |
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| High River L.P. v. Mylan Labs., Inc. | |
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| Capital Markets | |
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| Capital Markets | |
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| Primary and secondary markets | |
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| Equity markets | |
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| Debt markets | |
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| Derivatives, currency, and commodities markets | |
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| Major Participants in the Capital Markets | |
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| Issuers and investors | |
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| Exchanges and trading platforms | |
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| Investment banks | |
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| Credit rating agencies, accountants and lawyers | |
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| Regulators | |
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| Efficient Capital Market Hypothesis (ECMH) | |
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| Case Application | |
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| In re Bear Stearns Cos., Securities, Derivative & ERISA Litigation | |
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| Kamin v. American Express | |
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| Basic, Inc. v. Levinson | |
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| West v. Prudential Securities Inc. | |
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| Corporate Transactions | |
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| Capital Raising | |
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| Reasons for capital raising | |
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| Public and private offerings | |
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| Capital raising process and the lawyer role | |
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| Mergers and Acquisitions | |
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| What is M&A? | |
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| Rationale for M&A | |
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| Accretion and dilution | |
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| M&A process and the lawyer's role | |
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| Restructuring | |
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| Case Application | |
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| Escott v. BarChris Construction Corp. | |
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| Smith v. Van Gorkom (Part II) | |
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| Katz v. Oak Industries, Inc. | |
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| Glossary | |