Principles of Finance

Principles of Finance

Table of Contents edit

Introduction edit

What is Finance
Branches of Finance
How to use this book?

Section 1 Introductory Concepts edit

Chapter 1 The Basics edit

An Overview on Money
Principle of Relative Valuation
Role of a CFO and Finance Managers
Is Accounting and Finance one and the same?

Chapter Financial Markets and Institutions edit

Stock Markets
Bond Markets
Money Markets
Derivatives Markets
Foreign Exchange Markets
Determinants of Interest Rates
The Federal Reserve System
Commercial Banks
Regulation of Commercial Banks

Chapter 2 The Time Value of Money edit

Introduction to Time Value of Money
The concept of returns
The Present Value of Money, Net Present Value and Discounting
The Opportunity Cost of Capital
The effect of compounding and Future Value

Chapter 3 Applications of Time Value of Money edit

How to make Investment Decisions?
All about Perpetuities

Section 2 Investments and Returns edit

Chapter 4 Bonds edit

Rate of Returns: Varying and Annualized
The Yield Curve
Valuing Bonds
The Yield to Market Curve
Advanced Concepts of Bonds

Chapter 5 Risk and Return edit

What is Risk?
Types of Risk
Risk Management

Chapter 6 Corporate Finance edit

Weighted Average Cost of Capital
Beta and its Uses
Return on Equity
Modigliani & Miller
Project Valuation
Growth Opportunity
Computation or Table Lookup

Chapter 7 Portfolio Theory edit

Efficient-Market Hypothesis
Modern Portfolio Theory
Capital Asset Pricing Model
Arbitrage pricing theory
Correlation Among Securities
Optimal Market Portfolio

Section 3 Market Theory edit

Authors edit

Minor Contributions edit