Revised edition of the authors' Lessons in corporate finance, [2016]

Includes bibliographical references and index.

Machine generated contents note: About the Authors Acknowledgments Preface Chapter 1 Introduction Two Markets: Product and Capital The Basics: Tools and Techniques A Diagram of Corporate Finance A Brief History of Modern Finance Reading This Book Chapter 2 Determining a Firm's Financial Health (PIPES-A) The Conversation with the Banker Is Like a Job Interview Starting with the Product Market Strategy Is PIPES Profitable? Doing the Math Sources and Uses of Funds Ratio Analysis The Cash Cycle Summary Chapter 3 Pro Forma Forecasts (PIPES-B) First, Let's Take a Closer Look at Ratio Analysis Pro Forma Forecasts Circular Relationships Back to (Forecasting) the Future Projecting Out to 2014 and 2015 Evaluating the Loan Summary Appendix 3A: Accounting Is Not Economic Reality Chapter 4 The Impact of Seasonality on a Firm's Funding (PIPES-C) Monthly Pro Forma Income Statements Monthly Pro Forma Balance Sheets A Different Picture of the Firm Summary Appendix 4A: PIPES Monthly Pro Forma Income Statements and Balance Sheets 2014 Appendix 4B: PIPES Monthly Pro Forma Income Statements and Balance Sheets 2015 Chapter 5 Why Financing Matters (Massey Ferguson) Product Market Position and Strategy Political Risk and Economies of Scale in Production Massey Ferguson 1971-1976 Sustainable Growth The Period after 1976 Conrad Runs Away The Competitors Back to Massey Massey's Restructuring Postscript: What Happened to Massey Summary Appendix 5A: Massey Ferguson Financial Statements Chapter 6 An Introduction to Capital Structure Theory Optimal Capital Structure M&M and Corporate Finance Taxes Costs of Financial Distress The Textbook View of Capital Structure The Cost of Capital Summary Chapter 7 Capital Structure Decisions (Marriott Corporation and Gary Wilson) Capital Structure The Cost of Capital How Firms Set Capital Structure in Practice Corporate Financial Policies Sustainable Growth and Excess Cash Flow What to Do with Excess Cash? Summary Appendix 7A: Marriott Corporation Income Statements and Balance Sheets Appendix 7B: Marriott Corporation Selected Ratios Chapter 8 Investment Decisions (Marriott Corporation and Gary Wilson) What Is the Correct Price? How Should Marriott Buy Its Shares? The Loan Covenants The Impact of the Product Market on Financial Policies The Capital Market Impact and the Future Summary Chapter 9 Financial Policy Decisions (AT&T: Before and after the 1984 Divestiture) Background on AT&T M&M and the Practice of Corporate Finance Old (Pre-1984) AT&T New (Post-1984) AT&T Summary Appendix 9A: Development of AT&T Pro Formas 1984-1988 (Expected-Case) Chapter 10 The Impact of Operating Strategy on Corporate Finance Policy (MCI) A Brief Summary A Brief History of MCI Convertible Preferred Stock and Convertible Bonds Interest Rates and Debt Ratios Leases Financing Needs of the New MCI MCI's Financing Choice MCI Postscript Summary Appendix 10A: Development of MCI's Pro Formas 1984-1988 Chapter 11 Dividends and Stock Repurchases (Apple Inc.) The Theory of Dividend Policy Empirical Evidence Apple Inc. and the Decision on Whether to Pay Dividends What Did Apple Do? Summary Chapter 12 A Continuation of Capital Structure Theory The Tax Shield of Debt The Costs of Financial Distress Transaction Costs, Asymmetric Information, and Agency Costs Asymmetric Information and Firm Financing Agency Costs: Manager Behavior and Capital Structure Leverage and Agency Conflicts between Equity and Debt Holders The Amount of Financing Required Summary: An Integrated Approach Chapter 13 Restructuring and Bankruptcy: When Things Go Wrong (Avaya Holdings) When Things Go Wrong Avaya Holdings Avaya Files for Chapter 11 Bankruptcy The Key Economic Principle of Bankruptcy is to Save Viable Firms When Should a Firm File for Bankruptcy The Rules of Bankruptcy Maintaining the Value of a Firm in Bankruptcy Avaya Emerges from Bankruptcy Summary Appendix 13.A: The Creditors Coordination Problem Chapter 14 The Time Value of Money: Discounting and Net Present Values The Time Value of Money Net Present Value (NPV) Payback Projects with Unequal Lives Perpetuities Summary Chapter 15 Valuation and Cash Flows (Sungreen A) Investment Decisions How to Value a Project The Weighted Average Cost of Capital (WACC) Terminal Values Summary Chapter 16 Valuation (Sungreen B) Sungreen's Projected Cash Flows The Weighted Average Cost of Capital (WACC) Twin Firms The Cost of Equity The Cost of Debt The Final Valuation Strategic Analysis Summary Chapter 17 Valuation Nuances Cash Flow Nuances Cost of Capital Nuances Nuances on Calculating the Cost of Equity: Levering and Unlevering Beta Separating Cash Flows and Terminal Values Nuances of Terminal Value Methods Other Valuation Techniques: DCF Variations Real Options (aka Strategic Choices) Summary Chapter 18 Leveraged Buyouts and Private Equity Financing (Congoleum) Congoleum: A Short History Leading Up to the LBO: What Makes a Firm a Good LBO Target? Details of the Deal Postscript: What Happened to LBOs? Summary Appendix 18A: Congoleum's Pro Formas with and without the LBO Appendix 18B: Highlights of the Lazard Fairness Opinion Chapter 19 Mergers and Acquisitions: Strategic Issues (The Dollar Stores) The Three Main Competitors Recent History Shopping a Firm/Finding a Buyer Summary Chapter 20 Valuing an Acquisition: Free Cash Flows to the Firm (The Dollar Stores) The Bid for Family Dollar Free Cash Flows to the Firm Estimating the Cost of Capital Discounted Cash Flows Terminal Values The Three Pieces Summary Appendix 20A: Family Dollar Pro Forma Financial Statements with Authors' Constant Debt Ratio Chapter 21 Understanding Free Cash Flows (The Dollar Stores) Comparing the Free-Cash-Flows Formulas Back to Discount Rates On to Free Cash Flows to Equity Discounting the Free Cash Flows to Equity Summary Appendix 21A: Family Dollar Pro Forma Free Cash Flows to Equity with Constant Debt Ratio Chapter 22 Mergers and Acquisitions: Execution (The Dollar Stores) The Time Line Managerial Discretion Activist Shareholders The Federal Trade Commission (FTC) Shareholder Lawsuits The Vote Summary Appendix 22.A: Key Events in the Bidding for Family Dollar during 2014 and 2015 Chapter 23 Review Chapters 2-4: Cash Flow Management--Financial Tools Chapters 5-13: Financing Decisions and Financial Policies Chapters 14-22: Valuation Tools and Concepts Discussed in This Book Finance as Art, Not Science Bottom Lines An Intelligent Approach to Finance Keeping Current Larry's Last (Really a True) Story Paul's Theory of Pies Rules to Live By Glossary Index.

"An intuitive introduction to fundamental corporate finance concepts and methods Lessons in Corporate Finance, Second Edition offers a comprehensive introduction to the subject, using a unique interactive question and answer-based approach. Asking a series of increasingly difficult questions, this text provides both conceptual insight and specific numerical examples. Detailed case studies encourage class discussion and provide real-world context for financial concepts. The book provides a thorough coverage of corporate finance including ratio and pro forma analysis, capital structure theory, investment and financial policy decisions, and valuation and cash flows provides a solid foundational knowledge of essential topics. This revised and updated second edition includes new coverage of the U.S. Tax Cuts and Jobs Act of 2017 and its implications for corporate finance valuation. Written by acclaimed professors from MIT and Tufts University, this innovative text integrates academic research with practical application to provide an in-depth learning experience. Chapter summaries and appendices increase student comprehension. Material is presented from the perspective of real-world chief financial officers making decisions about how firms obtain and allocate capital, including how to: Manage cash flow and make good investment and financing decisions Understand the five essential valuation methods and their sub-families Execute leveraged buyouts, private equity financing, and mergers and acquisitions Apply basic corporate finance tools, techniques, and policies  Lessons in Corporate Finance, Second Edition provides an accessible and engaging introduction to the basic methods and principles of corporate finance. From determining a firm’s financial health to valuation nuances, this text provides the essential groundwork for independent investigation and advanced study. "-- Provided by publisher.

"A corporate finance text, Lessons in Corporate Finance, Second Edition differs from existing books because of its unique approach using case-based class discussion and its involvement of a series of increasingly detailed questions and answers with conceptual insights and numerical examples. The book, in three parts, will discuss the basics of corporate finance, capital structure and financing needs, and project and company valuation. Topics include: -Ratios and pro formas -Capital structure -Dividends -Maturity of debt -Asymmetric information -The five methods of valuation with an emphasis on the free cash flow to the firm and the free cashflow to equity. Lessons in Corporate Finance: A Case Studies Approach to Financial Tools, Financial Policies, and Valuation, Paul Asquith and Lawrence Weiss, 9781119207412, April 2016, 496 pgs, $75.00, Cloth Sales: 838 Ebook: 378 -Corporate Finance, Second Edition: A Practical Approach (CFA Institute Investment Series), Clayman, 2012, 9781118105375, Cloth, $95.00, Cloth Sales: 4,278 Ebook: 1,154"-- Provided by publisher.