ESCP Europe

Essentials of Corporate Finance focuses on what undergraduate students with widely varying backgrounds need to carry away from a core course in business or corporate finance. The goal is to convey the most important concepts at a level that is approachable for the widest possible audience. Essentials is written in a relaxed, conversational style that invites the students to join in the learning process rather than being a passive information absorber. Essentials has three basic themes as a central focus: An Emphasis on Intuition: We always try to separate and explain the principles at work on a commonsense, intuitive level before launching into any specifics. A Unified Valuation Approach: We treat net present value (NPV) as the basic concept underlying corporate finance. A Managerial Focus: Students shouldn’t lose sight of the fact that financial management concerns management. We emphasize the role of the financial manager as decision-maker, and we stress the need for managerial input and judgment.

Part One: Overview of Financial Management Chapter 1: Introduction to Financial Management Part Two: Understanding Financial Statements and Cash Flow Chapter 2: Financial Statements, Taxes, and Cash Flow Chapter 3: Working with Financial Statements Part Three: Valuation of Future Cash Flows Chapter 4: Introduction to Valuation: The Time Value of Money Chapter 5: Discounted Cash Flow Valuation Part Four: Valuing Stocks and Bonds Chapter 6: Interest Rates and Bond Valuation Chapter 7: Equity Markets and Stock Valuation Part Five: Capital Budgeting Chapter 8: Net Present Value and Other Investment Criteria Chapter 9: Making Capital Investment Decisions Part Six: Risk and ReturnChapter 10: Some Lessons from Capital Market History Chapter 11: Risk and Return Part Seven: Long-Term Financing Chapter 12: Cost of Capital Chapter 13: Leverage and Capital Structure Chapter 14: Dividends and Dividend Policy Chapter 15: Raising Capital Part Eight: Short-Term Financial Management Chapter 16: Short-Term Financial Planning Chapter 17: Working Capital Management Part Nine: Topics in Business Finance Chapter 18: International Aspects of Financial Management Appendices Appendix A: Mathematical Tables Appendix B: Key Equations Appendix C: Answers to Selected End-of-Chapter Problems Appendix D: Using the HP-10B and TI BA II Plus Financial Calculators.