Abstract: CHAPTER ONE SETTING THE SCENE 1.1 Introduction 1.2 Value and Wealth 1.3 Owners, Managers and Other Stakeholders 1.4 Business Objectives 1.5 Shareholder Wealth Maximisation 1.6 The Stakeholder Approach 1.7 A Little Historical Background 1.8 The Vodaphone/Mannesman Case - a Seminal Event? 1.9 2000-2 Stock Market Slump and Corporate Scandals 1.10 The Focus of Finance - the Big Three Issues 1.11 Outline of the Book and How to Use It CASE STUDY: CADBURY-SCHWEPPES PLC CHAPTER 2 THE MEANING OF SHAREHOLDER VALUE 2.1 Introduction 2.2 The Touchstone of Success - The Pursuit of Shareholder Value 2.3 The Meaning of the NPV 2.4 The Twin Determinants of Value 2.5 The Efficient Markets Hypothesis (EMH) 2.6 Internal Constraints on Value Maximisation - Agency Issues 2.7 Words of warning 2.8 Summary CHAPTER 3 STRATEGIC MANAGEMENT FOR VALUE CREATION 3.1 Introduction 3.2 Levels of Strategy 3.3 Core Competences 3.4 How Core competences Add Value 3.5 Core Competences as a Basis or Strategy 3.6 Divestment - a return to Core Competence? 3.7 Selecting the markets in which to exploit core competences 3.8 Protecting Core Competence 3.9 Overview of the Key Ideas in Strategic Management 3.10 Summary CASE STUDY: THE QUAKER STORY CHAPTER 4 PROJECT APPRAISAL I: THE BASICS 4.1 Introduction 4.2 The role of strategy 4.3 The ingredients of an investment appraisal 4.4. Non-discounting methods 4.5 Discounting methods/discounted cash flow (DCF) 4.6 Worked example 4.7 Problems with DCF methods 4.8 Assessment of the methods 4.9 Summary CHAPTER 5 PROJECT APPRAISAL II: THE TRICKY BITS 5.1 Introduction 5.2 Allowing for inflation in project appraisal 5.3 Allowing for taxation in DCF 5.4 Risk and uncertainty in project appraisal 5.5 Expected NPVs and probabilities 5.6 Sensitivity analysis 5.7 Worked Example Bowman plc 5.8 Guarding against Project Risk 5.9 Summary CASE STUDY: VIRGIN'S WEST COAST RAILWAY PROJECT CHAPTER 6 THE RATE OF RETURN REQUIRED BY OWNERS 6.1 Introduction 6.2 The Dividend Valuation Model (DVM) 6.3 The Capital Asset Pricing Model (CAPM) 6.4 International Diversification 6.5 The Risk of Individual Securities 6.6 The Core of the CAPM: Security Market Line (SML) 6.7 Application - Finding the Required Return 6.8 Tailoring the Beta Value for New Projects of Varying Risks 6.9 Worked Example 6.10 The Equity Premium in Practice 6.11 Summary CHAPTER 7 Working capital management 7.1 Introduction 7.2 What is Working capital? 7.3 in cash 7.4 in Stock 7.5 in debtors 7.6 Investment in creditors 7.7 The cash conversion cycle 7.8 Putting it together - strategic working capital management 7.9 Overtrading 7.10 Worked example: Ewden plc 7.11 Summary CASE STUDY: SODEXHO PLC CHAPTER 8 RAISING LONG TERM FINANCE 8.1 Introduction 8.2 The Strategic issues 8.3 Equity Financing 8.4 Borrowing 8.5 Borrowing and the Gearing Phenomenon 8.6 Types of Long-Term Debt 8.7 Hybrids 8.8 Worked Example: Bardsey plc 8.9 Summary CHAPTER 9 THE REQUIRED RETURN ON INVESTMENT 9.1 Introduction 9.2 The cost of debt 9.3 The required rate of return when equity and debt are combined 9.4 Worked example 9.5 Gearing and company value 9.6 Is there an optimal gearing ratio? 9.7 Summary CHAPTER 10 HOW TO VALUE COMPANIES 10.1 Introduction 10.2 The value of quoted companies 10.3 Valuing unquoted companies 10.4 The (net) asset value (NAV) method 10.5 The Price:earnings ratio (PER) method 10.6 The discounted cash flow (DCF) approach 10.7 Using value drivers - shareholder value analysis 10.8 Worked example 1: Safa plc- ungeared version 10.9 Worked example 2: valuing a geared version of Safa 10.10 Summary CASE STUDY: EASYJET PLC CHAPTER 11 RETURNING VALUE TO OWNERS 11.1 Introduction 11.2 Theories of dividend policy: overview 11.3 Dividends as a residual: dividend irrelevance 11.4 Evaluation of the irrelevance argument: alternative views 11.5 Alternatives to cash dividends 11.6 Personal taxation 11.7Dividend policy: key determinants 11.8 Dealing with cash surpluses: special dividends and share buy-backs 11.9 Summary CHAPTER 12 MANAGING RISK 12.1 Introduction 12.2 What is risk, and how is it managed? 12.3 Integrated risk management 12.4 How risk management can add value 12.5 The importance of communication 12.6 Exchange rate risk and interest rate risk 12.8 Managing Exchange Rate Risk 12.9 Managing Interest rate Risk 12.10 Choosing which hedging techniques to use 12.11 Managing the future 12.12 Summary CHAPTER 13 MEASURING PERFORMANCE 13.1 Introduction 13.2 Problems with profit-Based measures of Performance 13.3 The Value-Action Pentagon 13.4 SVA Again 13.5 Measuring value creation: TSR, MVA, EVA 13.6 The Calculation of EVA: South African Breweries (SAB) 13.7 The Advantages of EVA * The Challenge of EVA * Some Problems with EVA 13.9 A Broader Perspective The Balanced Scorecard 13.9 Summary CASE STUDY: KLM ROYAL DUTCH AIRLINES
Publication Year: 2005
Publication Date: 2005-02-01
Language: en
Type: book
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Cited By Count: 10
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