This book is about Corporate Finance: how companies make decisions about what projects to pursue, and how to value those projects. This book will provide a framework for how financial professionals make decisions about how, when, and where to invest money.
Corporate Finance comprises a set of skills that interact with all the aspects of running a business. It is also extremely helpful in our personal lives when making decisions about buying or leasing, borrowing money, and making big purchases. It provides analytic tools to think about getting, spending, and saving.
We will explore the time value of money and develop a set of tools for making good financial decisions, like Net Present Value and Internal Rate of Return. We will explore the trade-off between risk and return, and how to value income producing assets. Valuation of companies and assets can seem mysterious. Where do you even begin? How can you value a startup that doesn't even have any revenues yet?
This book will help you gain confidence in your knowledge and understanding of finance. The tools of corporate finance will help you as a manager or business owner to evaluate performance and make smart decisions about the value of opportunities and which to pursue.
An understanding of Corporate Finance is essential for the professional manager in order to meaningfully discuss issues with colleagues and upper management. You need to be versed in this subject in order to climb any corporate ladder.