Capital Budgeting
THEORY AND PRACTICE
Capital investment decisions are a constant challenge to all levels of financial managers. Capital Budgeting: Theory and Practice shows you how to confront them using state-of-the-art techniques.
Broken down into four comprehensive sections, Capital Budgeting: Theory and Practice explores and illustrates all aspects of the capital budgeting decision process. Pamela Peterson and Frank Fabozzi examine the critical issues and limitations of capital budgeting techniques with an in-depth analysis of:
* Classifying capital budgeting proposals
* Determining the relevant cash flows for capital budgeting proposals
* Assessing the economic value of a capital budgeting proposal using different techniques
* Incorporating risk into the capital budgeting decision
* Evaluating whether to lease or borrow-to-buy
Capital Budgeting: Theory and Practice provides the knowledge, insight, and advice that will allow you to handle one of the most important aspects of your firm's financial management. Advanced enough for practitioners yet accessible enough for the novice, Capital Budgeting: Theory and Practice is your complete guide to understanding and benefiting from the essential techniques of capital budgeting.

In today's climate the need for a closer understanding of the relationship between the two inter-related topics of risk management and finance on construction projects is becoming increasingly crucial to achieving the objectives of the investor, the end-user and the constructor and its supply chain, especially as interest in PFI and PPP arrangements continues to grow around the world. Risk and Financial Management in Construction shows the relationship between the Construction Project Manager's task of balancing time, cost and quality and the need to satisfy the client's requirements efficiently, effectively and professionally whilst at the same time contributing to the contractor's future sustainability. The book covers Risk Management describing the tools and methods to reduce the occurrence and consequences of risk, and the financial management of construction projects from raising funding, to contract strategy and through to estimating, budgeting and cost control. It includes a chapter covering international project risk, bringing together the issues of risk management, prime contracting, and PFI funding for construction projects undertaken away from the contractors main home market. Risk and Financial Management in Construction is aimed at those practising in, or studying to enter, the project management profession in providing a strategic and operational knowledge of these subjects allowing the reader easy access to the key points through a wide selection of models, checklists and easy to find lists in all of the key areas.

Praise for "Strategic Corporate Finance"

"Tracking stocks. Gross underwriting leverage. Float. The complex language of Wall Street can be daunting to even the most seasoned practitioner. In this clear and concise guidebook, Justin Pettit successfully deciphers the critical elements of how to enhance a company's value using capital markets."
--Professor David Wessels, The Wharton School, coauthor of "Valuation: Measuring and Managing the Value of Companies"

"Justin Pettit is one of the brightest corporate finance minds in America today. Justin has an unparalleled ability to help lay people understand and apply financial theory in a way that drives real bottom-line results."
--Brian Walker, President and CEO, Herman Miller Inc.

"On subjects ranging from capital budgeting and valuation to risk management and capital structure, Justin Pettit does an impressive job of translating principles of corporate finance theory into practical methods for implementing them."
--Don Chew, Editor, Journal of Applied Corporate Finance, Morgan Stanley

"This book does an outstanding job covering the key aspects of corporate finance and offers a refreshingly real-world approach to many of the important questions facing multinationals today. Students and finance professionals alike would benefit from understanding this material and putting it into practice."
--Jason Bristow, Treasurer, Amazon.com

"This is a reference book that should be on the desk of every finance professional. It is clear Pettit's work is grounded in solid finance theory, but he takes the next step we wish from every author . . . into the real world. He translates his diverse banking and consultingexperience into easy-to-understand finance strategy you can immediately apply on the job."
--Michael Collins, Managing Director and Head of Corporate Equity Risk Management, Societe Generale Corporate and Investment Banking

A comprehensive primer for executives and managers on working capital management

With limited access to credit and short term funding, it is increasingly important that companies focus on working capital management to free up funds and optimize liqidity. Written in the easy-to-follow Essentials Series style, "Essentials of Working Capital Management" covers the main components of working capital.Covers the latest trends around working capitalDiscusses a range of working capital topics, including cash management, banking relations, accounts receivable, inventory, accounts payable, and foreign exchangeAnalyzes the efficient utilization of current assets and liabilities of a business through each phase of the operating cycleExamines the planning, monitoring, and management of the company's collections, disbursements and concentration bankingExplores the gathering and management of information and forecast data to effectively use funds and identify risk

Focused on how businesses can continue to be successful in these difficult times, specifically in relation to the limited credit available to businesses, this book puts practical guidance at your fingertips so you can put them to work right away. A comprehensive case introduces each major section of the book, and suggested solutions are included in a book appendix.

This Handbook provides an excellent overview of our knowledge on the various facets of managerial venture capital research. The book opens with a thorough survey of venture capital as a research field; conceptual, theoretical and geographic aspects are explored, and its pioneers revisited. The focus then shifts to the specific environs of venture capital. Firstly, institutional (formal) venture capital is discussed. The analysis encompasses considerations such as structure, pre-investment processes, venture capitalist's value-adding, performance, impact on economic development and early-stage financing as well as management buyouts. Business angel research, networks, and their investment decision making are then discussed under the wider umbrella of informal venture capital. Finally, the corporate venture capital market is explored from both the entrepreneur's perspective and that of the supply side of corporate venture capital. Also providing a lively and stimulating debate on policy implications and possible directions for future venture capital research, this all-encompassing Handbook will prove an invaluable reference tool for those with an interest in policy, business management, innovation, entrepreneurship, and the financing of new and growth-oriented ventures.

AN INTRODUCTION TO FINANCIAL REPORTS--WITH NEW TACTICSFOR BUDGETING AND PINPOINTING KEY FINANCIAL AREASFinancial decisions impact virtually every area of your company. As a manager, it's up to you to understand how and why. Finance for Nonfinancial Managers helps you understand the information in essential financial reportsand then shows you how to use that understanding to make informed, intelligent decisions. It provides a solid working knowledge of: Basic Financial Reports--All about balance sheets, income statements, cash flow statements, and moreCost Accounting--Methods to assess which products or services are most profitable to your firmOperational Planning and Budgeting--Ways to use financial knowledge to strengthen your company Briefcase Books, written specifically for today's busy manager, feature eye-catching icons, checklists, and sidebars to guide managers step-by-step through everyday workplace situations. Look for these innovative design features to help you navigate through each page:Key Terms: Clear defi nitions of key terms and conceptsSmart Managing: Tactics and strategies for managing changeTricks of the Trade: Tips for executing the tactics in the bookMistake Proofing: Practical advice for minimizing the possibility of errorCaution: Warning signs for when things are about to go wrongFor Example: Examples of successful change-management tacticsTools: Specific planning procedures, tactics, and hands-on techniques

Andy Garlick's book explores the role of quantitative techniques in modern risk management. Risk management has grown in importance in most organisations in the last 20 years, but in many remains simply a matter of processing lists of risks and actions. The author argues that this fails to make the most of the techniques available and that organisations can improve their risk decision making by using risk models. His book describes a broad range of modelling techniques, all illustrated by business-relevant examples. The role of the models in decision making is also discussed, with particular emphasis on what the risk premium - the price people charge for accepting risk - is and should be. In order to provide a self contained account the underpinning material from probability and decision theory is also included, so that the book will provide a handy reference guide for all practitioners. The discussion is consistently informal, and the book provides a critical view of the accepted wisdom in risk management. This book will enable managers and their specialist advisors to improve their approach to risk whilst removing the mystique.

Take the risk out of financial risk management Written by bestselling author and past winner of the GARP Award's Risk Manager of the Year, Aaron Brown, Financial Risk Management For Dummies offers thorough and accessible guidance on successfully managing and controlling financial risk within your company. Through easy-to-follow instruction, you'll find out how to manage risk, firstly by understanding it, and then by taking control of it. Plus, you'll discover how to measure and value financial risk, set limits, stop losses, control drawdowns and hedge bets. Financial risk management uses financial instruments to manage exposure to risk within firms, large and small particularly credit risk and market risk. From managing and measuring risk to working in financial institutions and knowing how to communicate risk to your company and clients, Financial Risk Management For Dummies makes it easy to make sense of the management of risk when working in various different financial institutions and concludes by covering the topic of how to communicate risk how to report it properly and how to deal with and comply with all of the regulations. * Covers managing risk and working as a financial risk manager * Provides everything you need to know about measuring financial risk * Walks you through working in financial institutions * Demonstrates how to communicate risk If you work in the financial sector and want to make financial risk management your mission, you've come to the right place!

The second edition of this best-selling introduction for practitioners uses new material and updates to describe the changing environment for project finance. Integrating recent developments in credit markets with revised insights into making project finance deals, the second edition offers a balanced view of project financing by combining legal, contractual, scheduling, and other subjects. Its emphasis on concepts and techniques makes it critical for those who want to succeed in financing large projects. With extensive cross-references, a comprehensive glossary, and online spreadsheets that follow its chapters, this new edition presents a new guide to the principles and practical issues that can commonly cause difficulties in commercial and financial negotiations.

Provides a basic introduction to project finance and its relationship with other financing techniquesDescribes and explains:
sources of project financetypical commercial contracts ("e.g., " for construction of the project and sale of its product or services) and their effects on project-finance structuresproject-finance risk assessment from the points of view of lenders, investors, and other project partieshow lenders and investors evaluate the risks and returns on a projectthe role of the public sector in public-private partnerships and other privately-financed infrastructure projectshow all these issues are dealt with in the financing agreements"

Discover the tools for knowing the costs your company should cut, without impacting its ability to deliver goods and services

New from Steve Bragg, this book provides the tools for determining which costs a company should cut, without impacting its ability to deliver goods and services. It explains how to use throughput analysis in order to locate bottleneck operations in a company, which in turn dictates where capital investments should (and should not) be made.Delves into process analysis, to determine where excess resources are being used in a business processDescribes the total cost of ownership, showing how a single purchasing decision actually snowballs into a variety of ancillary costsShows how to create and use a spend management system to reduce procurement costsShows how just-in-time systems can be used to eliminate inventory costs

"Cost Reduction Analysis: Tools and Strategies" provides examples to show how much cost can potentially be eliminated to avoid drastic action later that can imperil your corporation's direction and future.

Comprehensive and edited by leading names, this book takes a critical and discursive approach to the various forms and contexts of fundraising. Fundraising is a maturing profession, but one that is becoming increasingly controversial. Media reports of poor practice have contributed to concerns about the integrity of fundraisers and the uses which have been made of the resources they raise. As a result, a consensus now exists among senior figures in the industry about the changes that are required. Technique is no longer enough. Many more of the next generation of practitioners must be capable of considered reflection, organizational and inter-organizational strategic thinking and value-based leadership. Exploring new developments taking place in the area of fundraising, the specially commissioned articles, by experts in the field move the thinking in the profession beyond its familiar formulae and assumptions, opening up critical debate about the nature, contribution and limitations of fundraising. This volume is essential reading for anyone who aspires to work at senior levels in fundraising or is currently engaged in studying this challenging area.

Ease the transition to the new COSO framework with practical strategy Internal Control Audit and Compliance provides complete guidance toward the latest framework established by the Committee of Sponsoring Organizations (COSO). With clear explanations and expert advice on implementation, this helpful guide shows auditors and accounting managers how to document and test internal controls over financial reporting with detailed sections covering each element of the framework. Each section highlights the latest changes and new points of emphasis, with explicit definitions of internal controls and how they should be assessed and tested. Coverage includes easing the transition from older guidelines, with step-by-step instructions for implementing the new changes. The new framework identifies seventeen new principles, each of which are explained in detail to help readers understand the new and emerging best practices for efficiency and effectiveness. The revised COSO framework includes financial and non-financial reporting, as well as both internal and external reporting objectives. It is essential for auditors and controllers to understand the new framework and how to document and test under the new guidance. This book clarifies complex codification and provides an effective strategy for a more rapid transition. * Understand the new COSO internal controls framework * Document and test internal controls to strengthen business processes * Learn how requirements differ for public and non-public companies * Incorporate improved risk management into the new framework The new framework is COSO's first complete revision since the release of the initial framework in 1992. Companies have become accustomed to the old guidelines, and the necessary procedures have become routine making the transition to align with the new framework akin to steering an ocean liner. Internal Control Audit and Compliance helps ease that transition, with clear explanation and practical implementation guidance.

A result of many years of research and practice, Changing the Performance is a book about the arts and about business, and the interplay between the two. Julia Rowntree gives a fascinating account of her experiences forging the business sponsorship campaign at the London International Festival of Theatre (LIFT).

Raising intriguing questions, this book proposes that fundraising for the arts is much more than simply a function for generating income. It fulfils an ancient social role of connection across levels of power, expertise, culture, gender and generation. Rowntree describes why these dynamics are vital to society's ability to adapt.
Changing the Performance is an inspiring manual for arts practitioners concerned with the relationship between business, the arts and wider society, and particularly those engaged in fundraising.

A result of many years of research and practice, Changing the Performance is a book about the arts and about business, and the interplay between the two. Julia Rowntree gives a fascinating account of her experiences forging the business sponsorship campaign at the London International Festival of Theatre (LIFT).

Raising intriguing questions, this book proposes that fundraising for the arts is much more than simply a function for generating income. It fulfils an ancient social role of connection across levels of power, expertise, culture, gender and generation. Rowntree describes why these dynamics are vital to society's ability to adapt.
Changing the Performance is an inspiring manual for arts practitioners concerned with the relationship between business, the arts and wider society, and particularly those engaged in fundraising.

If you are seeking access to equity or finance from a bank or bank-related institution, your company will need a Basel II rating. How does the Basel II Rating differ from previous credit ratings? What specific information will your bankers require for the rating? What can you do to ensure the most favourable outcome? Unfortunately there is no mathematical or scientific solution to these questions. Approval of your request will largely depend on your ability to provide not simply the relevant information, but a tactically effective line of argument. If you under-represent your project, even if it does not fail the rating test outright, it is likely to get it assigned to a grade below its merit. The penalty is reflected in the conditions of the desired facility, especially, the rate of interest. Marc B. Lambrecht's The Basel II Rating shows you what information to assemble and exactly how to make your case in order to maximise your rating results. His book will help you argue the success potential of your business; accurately define the financial basis on which that success can be realised; and present your credentials convincingly. Follow the framework, use the advice and the techniques he suggests and you will make a convincing case for your business and the value and risk of the project for which you are seeking finance. This book can help you ensure continued access to business finance and equity on the best possible commercial terms.

This work contains primary research texts regarding two centuries of the development of corporate finance in the US and Great Britain. It is designed to help scholars, financial managers, and public policymakers to investigate the historical background of issues in contemporary corporate finance, including: corporate structure and governance; securities issuance; direct and indirect finance; and fraud detection. Key texts in the set include detailed securities market primers like thomas Fortune's Epitome of the Stocks and Publick Funds and Charles Fenn's Compendium of the English and Foreign Funds. There are extended discussions of policy issues contained in Observations on Unlimited and Limited Liability, by William Hawes; two early, specialized treatises on corporate financial law; descriptions of everyday corporate financial practices, from George Rae's The Internal Management of a Country Bank; and early theoretical treatments of corporate finance, including excerpts from Thorstein Veblen's Theory of Business Enterprise and Alfred Marshall's Industry and Trade.

This book is based upon papers presented at the 10th Annual Conference of the Tax Research Network held at the University of Birmingham, United Kingdom, in September 2000. The book covers four discrete areas namely compliance, e-commerce and taxation, international taxation and taxation within the European Union, and value added tax, and focuses within those areas on issues of topical and continuing interest. In an introductory chapter, the editors provide an overview of the subject matter of each of the substantive chapters (of which there are eleven). They conclude by seeking to extrapolate from those chapters, notwithstanding their diversity, various matters of wider and contemporary import to taxation. The treatment of the material in this book by scholars from various academic disciplines and with differing geographical perspectives also gives distinct and instructive insights into widely recognised and enduring taxation problems within the above-mentioned subject areas. Further, an appreciation and understanding of the multi-faceted approaches which may be adopted for problem solving, and which are evident in this book, can only enhance the prospects of the ultimate resolution of these problems.

This book is designed to enable and encourage health professionals and family support workers to include fathers in the process of their work. It focuses on the enormous potential value of accessing men at a time they are known to be particularly receptive - before and after the birth - within the context of providing solutions in the debate about problematic aspects of masculinity and fatherhood. It looks at how important the father's role is within the family environment and how fathers should be encouraged to take part in the upbringing of their children.

The investment alternatives offered by mutual funds have had a significant effect on the savings patterns of many countries. Industry research has primarily focused on the funds themselves rather than on their management companies, but like other financial institutions, these companies, also known as mutual fund families, have experienced great periods of both expansion and contraction. It is important to address the efficiency of these institutions, as well. Carlos Sanchez Gonzalez fills this gap in our knowledge with this empirical study. He develops an innovative model that considers the management stages of mutual fund companies, overcoming the traditional dispute between the different approaches used in banking and insurance research. Using data envelopment analysis (DEA) to evaluate efficiency levels, Sanchez Gonzalez investigates the Spanish case, one of the most relevant industries in the Euro market, in order to provide insights into issues that have never been explored before. His study consists of two parts. The first explains the basic concepts, offers a brief explanation of the basic DEA models, and gives a review of the most important applications to financial institutions, all while developing a unique set of industry-specific variables in order to show how to apply the original slacks-based measure (SBM) approach. The second reviews the major concepts of SBM variations and shows how they can be applied to the Spanish mutual fund family industry in order to obtain unprecedentedly accurate empirical measures of its efficiency. This ground-breaking work offers much food for thought to academic researchers and postgraduate students of management, finance, and marketing.

Written by leading academic and industry experts actively engaged in revenue management, research and teaching this is a new and original treatment of the whole field for students and professionals. The first part of the book provides academically rigorous challenging and contemporary material to get to the core of the subject and to make the theory and practice lively, relevant and engaging. Throughout this, and the second section, numerous references to past and present good practice are used- giving insight into best practice in cutting-edge companies leading the revenue management agenda in markets all over the world. The second part of the book is authored by a range of academics and practitioners all currently engaged in revenue management practice, balancing the theory with the best overview possible of best real world practice. Drawn from the widest possible range of sectors including hospitality, car rental, airlines, tour operators, restaurants and advertising it gives an unrivalled industry perspective. The book is designed for students at many levels in universities, business schools, schools of tourism and hospitality studying marketing, pricing, distribution, selling and commercial issues in the service industry. It will also be ideal for practitioners (consulting experts, revenue managers, pricing managers) studying part-time or on CPD programmes requiring a strong theoretical and practical orientation. It will be essential for those working in revenue management, reservations, operations and logistics and generic marketing.

Whether you want to buy an existing business, start a new one, expand into new markets, or purchase new equipment, The Ernst & Young Guide to Financing for Growth helps you choose the right option, find the most favorable terms, and get the money you need to make your business grow. This new edition of the classic - The Ernst & Young Guide to Raising Capital - has been completely revised, updated, and expanded to include all the latest on state, federal, and international financing programs, as well as all the new SEC reporting requirements, and more. The experts at Ernst & Young's Entrepreneurial Services Group help you to find crucial information on: when and how to make a public securities offering - everything from general business concerns to the technical fine points; private placement - "exempt" offerings of securities and how to choose them for maximum financial advantage clearly detailed guidance on the basics of traditional debt financing, mezzanine loans, and all the ins and outs of borrowing; how to use leasing or franchising to increase cash flow and to free funds for other growth opportunities; how strategic partnerships or joint ventures can be the solution to your financing problems; how to use an ESOP to solve your liquidity and estate-planning needs; how to do a management buy-out; when acquisitions make sense or when selling out is appropriate, and how to go about either; and federal, state, and local government financing made easy. From joint ventures and public issues to leasing and cross-border alliances, whatever your growing business needs, The Ernst & Young Guide to Financing for Growth provides you with all the necessary information to expand your business.

Maximize Your Profits with Innovative Cost Reduction Techniques!

The Cost Half approach does not rely on gradual improvement activities. Rather, it is a radical, "greedy" approach that focuses on developing three interrelated strengths to ensure stable business results. That is, Cost Half puts you on the road to increasing market development strength, improving competitive quality, and maintaining competitive cost.

The techniques in "Cost Half: The Method for Radical Cost Reduction" are designed to help meet target costs and create a sustainable cost management system for strong business capability.

Highlights Include:

• Identification of the telltale signs of a company in need of a Cost Half program
• Practical techniques for changing cost-generating sources and locations
• Step by step guide for the implementation of Cost Half in your company
• Cost Half benchmarking activities
• A case study demonstrating a successful Cost Half project

This book provides not only practical guidance on how to manage resources but also a critical examination of the conventional techniques of financial planning and control through the introduction of new approaches. Additional chapters have been added to introduce Strategic Management Accounting, Activity Based Costing and the Balanced Scorecard, New Performance Measures, Venture Capital, Knowledge Management and Outsourcing, and Financial Considerations of eBusiness. In this third edition, the book has been revised to encourage the reader to think about and reflect upon the emergence of recent principles and practices related to financial planning and control. While it is addressed primarily to business managers with an interest in financial planning and control, the range of subjects covered and the breadth of approach adopted by many of the contributors will make the Handbook of Financial Planning and Control especially useful to those managers in non-financial functions (as well as students of management) who must reconcile theory with the everyday reality of modern business practice.

This indispensable tool provides readers with complete coverage of the issues, methods, and art of valuing and pricing of early-stage technologies including backgrounds in the core concepts, sources of value, methods of valuation, equity realizations, and negotiation strategies.

Many small business owners don't understand the importance of maintaining a healthy cash flow. More than anything else, cash flow determines the success or failure of a small business. "Small Business Cash Flow" covers all the basics of cash flow, from selecting a great accountant, to keeping money flowing in and out of the business, to budgeting and record-keeping.