On Finance

Christian Schopper, Corporate Finance Concepts

3rd Edition (2024)

AVAILABLE ON AMAZON – ISBN: 979-8871520109

WHAT IS COPORATE FINANCE?

Supporting a Corporate´s Strategy

RISK IN FINANCE

It´s all about Volatility …

RISK AND RETURN

Basics / Market Portfolio / Risk-Free Rate / Yield Curve / Sharpe Ratio / Alternative Risk-Adjusted Measures / Modern Portfolio Theory / Capital Asset Pricing Model / All these Lines: CAL, CML, SML, EF …

CORPORATE FINANCIAL ANALYSIS

Corporate Health Check / The 5-Minute Analysis / Return on Equity: The Shareholder Perspective / Return on Assets: The Management Perspective / Working Capital / Cash Conversion Cycle / Liquidity / Credit Standing / Organic Growth

COST OF CAPITAL

Cost of Equity Concept / Risk-Free Rate Applied / Beta Factor / Levered and Unlevered Beta / Market Risk Premium / Cost of Capital Optimization

VALUATION APPROACHES

On Price and Value / Book Value and Market Value / Equity and Enterprise Value / Pre- and Post-Money Value / DCF: About Cash Flows / DCF: About WACC / DCF: The Issues / DCF: The Country Risk Premium / DCF: Adjusted Present Value / Dividend Discount Model / Valuation Multiples / Premiums Paid in M&A Transactions /Discount for Lack of Marketability (DLOM) / Discount for Lack of Liquidity (DLOL) / The Private Equity Perspective: Residual Cash Flow / The Venture Capital Perspective

DIVIDENDS AND SHARE BUYBACKS

Dividend Policy / Share Buybacks / The Rationale of Stock Dividends

THE CORPORATE LIFE CYCLE

Introduction / Funding Principles / Cost of Capital Optimization Applied / Start-Up and Early Stage Funding / Growth Stage Funding / Maturity Stage Funding / Decline Stage Funding

MERGERS AND ACQUISITIONS

Mergers and Acquisitions / Cash and Stock Deals / Sell-Side Process / Earnouts, Collars and CVRs / Valuation of Synergies / Valuation of Synergies – Applied / Hostile Takeovers and Defence

CORPORATE RESTRUCTURING

Restructuring Strategies / Divestitures and Alternative Forms of Asset Separation / Financial Restructuring in Distress / Restructuring Tools Available in Distress / When Black Swans Arrive: Coronavirus

CAPITAL MARKETS

Public and Private Capital Markets / Capital Markets Institutions / Money Markets / Traditional Investment Instruments / Alterative Investments – Private Debt and Equity / Alternative Investments – Hedge Funds / Issuing Bonds / Credit Rating Process / Leveraged Loans and High-Yield Bonds / Issuing Equity: IPO Process

FINANCIAL DERIVATIVES

Financial Derivatives / Forwards and Futures / Options / Swaps

The Securitization Alphabet: ABS, RMBS, CMBS, CDOs … / Primer on CLOs

Basics / Loan Policy / Loan Process and Terms / Capital Adequacy: Regulatory Capital / Capital Adequacy: Economic Capital / Asset Quality / Management Quality / Earnings Quality / Liquidity / Sensitivity / ALM: Basics / ALM: Liquidity Risk / ALM: Interest Rate Risk – Maturity GAP / ALM: Interest Rate Risk – Duration GAP

COMMENTS & SPECIAL TOPICS