Strategic Corporate Finance: Applications in Valuation and Capital Structure

Contents

Preface

List of Figures

List of Tables

Acknowledgments

About the Author

Part One: Managing the Left-Hand Side of the Balance Sheet

Chapter 1: The Cost Of Capital

Calculation Pitfalls

Market Risk Premium (MRP)

Toward a Better Beta

The “Riskless Rate”

The Cost of Debt

Global Capital Costs

WACC and Hurdle Rates

Chapter 2: Fix: Finding Your Sources of Value

Why Shareowner Value?

Performance Measurement Pitfalls

Measuring Economic Profit and Value

Analyzing the Corporate Portfolio

Incorporating the Cost of Capacity

Value-Based Strategies and Tactics

Managing for Value

Balancing Performance with Value

Chapter 3: Sell: Creating Value Through Divestiture

Divestiture Creates Value

Sources of Value: Motives for Divestiture

Alternative Methods of Disposition

What Works Best for Whom?

What Happens Longer Term?

Practical Impediments to Divestiture

Financial Policy Considerations

Tax Considerations and Structural Refinements

Chapter 4: Grow: How To Make M&A Pay

M&A Today

Transactions that Create Value

M&A Fact and Fallacy

RX for the “Conglomerate Discount”

EVA and M&A

How “Serial Acquirers” Create Value

Financial Policy Considerations

Financing Growth

Chapter 5: Cash and The Optimal Capital Structure

Trends and Implications

How Much is Too Much?

The Costs and Benefits of Excess Cash

How the Market Views Excess Cash

Optimal Capital Allocation

Part Two: Managing the Right-Hand Side of the Balance Sheet

Chapter 6: An Executive’s Guide to Credit Ratings

Trends and Implications

Empirical ...