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2023 | Book

Analytical Corporate Finance

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About this book

This book draws readers’ attention to the financial aspects of daily life at a corporation by combining a robust mathematical setting and the explanation and derivation of the most popular models of the firm. Intended for third-year undergraduate students of business finance, quantitative finance, and financial mathematics, as well as first-year postgraduate students, it is based on the twin pillars of theory and analytics, which merge in a way that makes it easy for students to understand the exact meaning of the concepts and their representation and applicability in real-world contexts. Examples are given throughout the chapters in order to clarify the most intricate aspects; where needed, there are appendices at the end of chapters, offering additional mathematical insights into specific topics. Due to the recent growth in knowledge demand in the private sector, practitioners can also profit from the book as a bridge-builder between university and industry. Lastly, the book provides useful information for managers who want to deepen their understanding of risk management and come to recognize what may have been lacking in their own systems.

Table of Contents

Frontmatter
1. Basic Concepts
Abstract
The core of corporate finance is the company and its life cycle. The focus is on the analysis of how the company finances itself, how it spends the money acquired, and what are the sources of income derived from projects.
Angelo Corelli
2. Valuation Tools
Abstract
A financial market is an aggregation of possible investors willing to buy or sell financial assets. Financial valuation is a complex discipline that involves many tools and methods to correctly price assets and risks in financial markets.
Angelo Corelli
3. The Relationship Between Risk and Return
Abstract
The relationship between risk and return on the financial market is an issue of primary importance in finance, and it spans all the fields of specialization, including corporate finance.
Angelo Corelli
4. Business Analysis
Abstract
Every business decision must start with an in-depth analysis of the potential investment opportunities. To understand the right choice for project undertaking, all possible choices must be analyzed.
Angelo Corelli
5. Debt Valuation
Abstract
Debt is one of the possible sources of capital for the company. When the debt is issued on the market, it takes the form of bonds and complements the capital obtained as debt from banks.
Angelo Corelli
6. Equity Valuation
Abstract
Together with debt capital, another important part of the financing of a firm is equity capital, a source of financing that is based on cash inflows provided by the ownership of the company or by the retention of profits.
Angelo Corelli
7. Capital Structure
Abstract
The capital structure of a company is the foundation for the daily development of its operation and for adequate planning of the business. It says in fact how many resources are available and where they come from.
Angelo Corelli
8. Company Valuation
Abstract
Company valuation is the core of many corporate finance courses, and it represents one of the most challenging tasks to perform in relation to the analysis of company financials.
Angelo Corelli
9. Financial and Real Options
Abstract
Financial derivatives constitute a large proportion of trading in world financial markets due to their unbeatable features. Derivatives are popular in fact for their flexibility and combinability.
Angelo Corelli
10. Long-Term Financing
Abstract
Previous chapters of the book have underlined how the capital structure of a firm normally involves both debt and equity sources and how important it is to find the right mix between the sources to maximize the value and reduce the risk.
Angelo Corelli
11. Working Capital Management
Abstract
After developing the issue of long-term capital management, it is also important to analyze the short-term side of capital management, which focuses primarily on the management of working capital.
Angelo Corelli
12. Financial Planning
Abstract
Several topics are of primary importance to the firm. Growth management, for example, is crucial for new businesses, starting in the form of start-ups, with the aim of growing in a relatively short time.
Angelo Corelli
13. International Corporate Finance
Abstract
Globalization provides access to foreign markets where goods and services can be sold to improve profitability and diversify the risk associated with operations. It is therefore important to understand the sense of globalization.
Angelo Corelli
14. Special Topics
Abstract
The previous chapters showed how standard corporate management can be carried out through knowledge of corporate finance tools and issues and how to exert the standard functions of corporate management.
Angelo Corelli
Backmatter
Metadata
Title
Analytical Corporate Finance
Author
Angelo Corelli
Copyright Year
2023
Electronic ISBN
978-3-031-32319-5
Print ISBN
978-3-031-32318-8
DOI
https://doi.org/10.1007/978-3-031-32319-5