Strategic Financial Management: Finance & Wealth Decisions

This book reviews the subject within the context of current events. The material is presented logically as a guide to further study.

First, the finance decision, which allocates least-cost combinations of capital resources.
Finally, the wealth decision, which examines how internal investment and financial decisions should be externally monitored by the market.

Contents
PART ONE: THE FINANCE DECISION
1. Equity Valuation and the Cost of Capital
1.1 The Capitalisation Concept
1.2 Single-Period Dividend Valuation
1.3 Finite Dividend Valuation
1.4 General Dividend Valuation
1.5 Constant Dividend Valuation
1.6 The Dividend Yield and Corporate Cost of Equity
1.7 Dividend Growth and the Cost of Equity
1.8 Capital Growth and the Cost of Equity
1.9 Growth Estimates and the Cut-Off Rate
1.10 Earnings Valuation and the Cut-Off Rate
1.11 Summary and Conclusions
1.12 Selected References
2. Debt Valuation and the Cost of Capital
2.1 Capital Gearing (Leverage): An Introduction
2.2 The Value of Debt Capital and Capital Cost
2.3 The Tax-Deductibility of Debt
2.4 The Impact of Issue Costs
2.5 Summary and Conclusions
3. Capital Gearing and the Cost of Capital
3.1 The Weighted Average Cost of Capital (WACC)
3.2 WACC Assumptions
3.3 The Real-World Problems of WACC Estimation
3.4 Summary and Conclusions
3.5 Selected Reference

PART TWO: THE WEALTH DECISION
4. Shareholder Wealth and Value Added
4.1 The Concept of Economic Value Added (EVA)
4.2 The Concept of Market Value Added (MVA)
4.3 Profit and Cash Flow
4.4 EVA and Periodic MVA
4.5 NPV Maximisation, Value Added and Wealth
4.6 Summary and Conclusions
4.7 Selected References