Principles of Finance

Principles of Finance

Table of ContentsEdit


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

Section 1 Introductory ConceptsEdit

Chapter 1 The BasicsEdit

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 InstitutionsEdit

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 MoneyEdit

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 MoneyEdit

How to make Investment Decisions?
All about Perpetuities

Section 2 Investments and ReturnsEdit

Chapter 4 BondsEdit

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

Chapter 5 Risk and ReturnEdit

What is Risk?
Types of Risk
Risk Management

Chapter 6 Corporate FinanceEdit

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 TheoryEdit

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

Section 3 Market TheoryEdit


Minor ContributionsEdit