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Strategic Financial Management: Exercises

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Language :  English
By following the same structure as the companion text, this book of exercises and solutions tests your knowledge of Strategic Financial Management.
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By following the same structure as the companion text, this book of exercises and solutions tests your knowledge of Strategic Financial Management. It also develops a number of theoretical concepts outlined in the companion text as a guide to further study.

All the exercises and their solutions are easy to follow. Each chapter begins with a theoretical review of the basic issues to be examined .We then move into the real world of sophisticated, financial analysis. Each chapter also contains commentaries and a summary that provide further insight into current theory and practice, applied to the corporate investment and financial policies of today’s uncertain world.

  1. Part One: An Introduction
  2. Finance – An Overview
    1. Introduction
    2. Exercise 1.1: Modern Finance Theory
    3. Exercise 1.2: The Nature and Scope of Financial Strategy
    4. Summary and Conclusions
  3. Part Two: The Investment Decision
  4. Capital Budgeting Under Conditions of Certainty
    1. Introduction
    2. Exercise 2.1: Liquidity, Profitability and Project PV
    3. Exercise 2.2: IRR Inadequacies and the Case for NPV
    4. Summary and Conclusions
  5. Capital Budgeting and the Case for NPV
    1. Introduction
    2. Exercise 3.1: IRR and NPV Maximisation
    3. Exercise 3.2: Relevant Cash Flows, Taxation and Purchasing Power Risk
    4. Summary and Conclusions
  6. The Treatment of Uncertainty
    1. Introduction
    2. Exercise 4.1: Mean-Variance Analyses
    3. Exercise 4.2: Decision Trees and Risk Analyses
    4. Summary and Conclusions
  7. Part Three: The Finance Decision
  8. Equity Valuation the Cost of Capital
    1. Introduction
    2. Exercise 5.1: Dividend Valuation and Capital Cost
    3. Exercise 5.2: Dividend Irrelevancy and Capital Cost
    4. Summary and Conclusions
  9. Debt Valuation and the Cost of Capital
    1. Introduction
    2. Exercise 6.1: Tax-Deductibility of Debt and Issue Costs
    3. Exercise 6.2: Overall Cost (WACC) as a Cut-off Rate
    4. Summary and Conclusions
  10. Debt Valuation and the Cost of Capital
    1. Introduction
    2. Exercise 7.1: Capital Structure, Shareholder Return and Leverage
    3. Exercise 7.2: Capital Structure and the Law of One Price
    4. Summary and Conclusions
  11. Part Four: The Wealth Decision
  12. Shareholder Wealth and Value Added
    1. Introduction
    2. Exercise 8.1: Shareholder Wealth, NPV Maximisation and Value Added
    3. Exercise 8.2: Current Issues and Future Developments
    4. Summary and Conclusions
The exercises are really very helpful to test one's knowledge and to allow one to construct a personal guide of various concepts for review.
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About the Author

Robert Alan Hill