Key Elements of Corporate Finance and Investments

The book entitled Key Elements of Corporate Finance and Investment came into Limelight as a result of many years of lectures , researches and publications of the author on topics drawn from corporate finance ,structured finance , financial management, strategic financial management, financial accounting, management accounting, strategic management accounting , management etc. It took its root on the earlier book I published entitled Corporate Finance. I added additional eight chapters...
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The book entitled Key Elements of Corporate Finance and Investment came into Limelight as a result of many years of lectures , researches and publications of the author on topics drawn from corporate finance ,structured finance , financial management, strategic financial management, financial accounting, management accounting, strategic management accounting , management etc. It took its root on the earlier book I published entitled Corporate Finance. I added additional eight chapters which include the investment environment, financial markets and instruments, cost of capital, investment funds and their portfolios, debt and mezzanine financing, capital structure and factors affecting it, ten golden rules of equity investment, and interest rate determination and structure of interest rate.

The author has the background too with MBA Finance and PGD Financial Management. The book is extensive, apart from the fact that its main focus is on financial management, corporate finance and investment , the author went further to discuss topics in structured finance and management accounting.
We firstly dwell on mathematics of finance. Mathematics of finance is very important topic in financial management. It is actually the mathematical foundation of finance. If anybody that is expected to do finance courses whether corporate finance , structured finance , financial management , financial accounting and even management accounting etc and does not have good grip of mathematics of finance, he or she will find things difficult. The person will not be able to appraise a project effectively because he or she will not be able to use some capital budgeting decision tools like net present value, internal rate of return, profitability index etc.He or she will not be able to price a bond. The areas we discussed under mathematics of finance includes objectives of a firm, the concept of time value and return, annuity, present and future value of annuity, sinking fund and loan amortization etc. On bonds and equity valuations, we highlighted different types of bonds and the models used in valuing them. Also discussed are the valuation of preferred stock and general model for valuation of common stock(Ordinary shares). One-Period and two- period dividend valuation models amongst others. We dwelt on sensitivity analysis which is an important tool in project appraisal and answering what If question. Scenario analysis, coefficient of variability as well as risk and uncertainty were discussed with worked examples. On investment management, we defined investment management as a concept and went ahead to give some insights on industry scope, asset management, funds management and key elements in provision of investment services amongst others. We also dwelt on capital asset pricing model(CAPM) which is a wonderful model that has made it possible to construct portfolio of securities without computing lots and lots of covariances. We made some assumptions and then discussed the rationale for CAPM, Efficient Frontier with Risk Free Rate and Security Market Line etc .On Arbitrage Pricing Theory(APT),we made some assumptions here. We went further to discuss arbitrage pricing strategies, single factor model, multi-factor model, macroeconomic models ,fundamental models, statistical model and case exercises. We further discussed capital market expectations and parameters to estimate, asset classes etc. We also threw some light on market efficiency and behavioural finance. On cashflow statement, we discussed the important factors to note, why cashflow is important etc. We further dwelt on fundamental analysis ,technical analysis as well as estimation of intrinsic value. Ratio Analysis is one of the chapters in the book. The following were examined ie liquidity ratio, activity ratio, profitability ratio and debt(Leverage).