Principles of Finance

Principles of Finance__NOTOC__ Table of Contents Introduction What is Finance History Branches of Finance Prerequisites How to use this book? Section 1 Introductory Concepts Chapter 1 The Basics 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 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 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 Summary Chapter 3 Applications of Time Value of Money How to make Investment Decisions? All about Perpetuities Annuity Summary Section 2 Investments and Returns Chapter 4 Bonds Rate of Returns: Varying and Annualized The Yield Curve Valuing Bonds The Yield to Market Curve Advanced Concepts of Bonds Summary Chapter 5 Risk and Return What is Risk? Types of Risk Risk Management Summary Chapter 6 Corporate Finance 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 Efficient-Market Hypothesis Modern Portfolio Theory Capital Asset Pricing Model Arbitrage pricing theory Correlation Among Securities Optimal Market Portfolio Summary Section 3 Market Theory Authors Minor Contributions Venkatesh Sridhar Patrick Felton Numerous Wikipedia authors whose work was copied here. P Finance 25%