文档介绍：CAPITAL INVESTMENT & FINANCING
A Practical Guide to Financial Evaluation
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CAPITAL INVESTMENT & FINANCING
A Practical Guide to Financial Evaluation
Christopher Agar
In memory of Carrie
CONTENTS
List of Equations, Examples, and Exhibits xi
Preface xix
Chapter 1 CAPITAL INVESTMENT 3
Introduction 3
Capital Expenditure on Tangible Assets 4
Acquisitions – an Overview 5
Introduction 5
The Acquisition Process 6
Financial Due Diligence 8
Financial Evaluation 11
Corporate Valuation 13
Introduction 13
Discounted Cash Flow Valuation 15
Valuing Real Options 28
Valuation Using Multiples 31
Acquisition Structuring & Evaluation 33
Introduction 33
Purchase Price 33
Purchase Consideration 36
Chapter 2 CAPITAL RAISING 43
Introduction 43
Debt 44
Introduction 44
Loans 46
Corporate Bonds 61
Equity 68
Introduction 68
Initial Public Offerings 68
Rights Issues 70
Warrants 72
Chapter 3 CAPITAL MANAGEMENT 73
Introduction 73
Long Term Capital Management 74
Debt 74
Equity 76
vii
viii CONTENTS
Short Term Capital Management 82
Working Capital 82
Short Term Instruments – the Money Market 87
Chapter 4 FINANCIAL RISK MANAGEMENT 91
Introduction 91
Interest Rate Risk 92
Measuring Interest Rate Risk 92
Managing Interest Rate Risk with Derivatives 93
- Forward Rate Agreements 93
- Short Term Interest Rate Futures 96
- Long Term Interest Rate Futures 111
- Interest Rate Swaps 128
- Interest Rate Options 132
Currency Risk 134
Nature of Currency Risk 134
Managing Currency Risk with Derivatives 135
- Forward Currency Contracts 135
- Currency Futures 138
- Currency Swaps 138
- Currency Options 140
Appendix A Financial Ratios 143
Equity Ratios 143
Debt Ratios 153
Appendix B Pricing Techniques
B1 Corporate DCF Valuation 157
Discounting and Present Values 157
The Cost of Capital (and CAPM) 166
The Discount Rate for Domestic Investments 166
The Dis