Pierre Vernimmen (deceased) was a founding member and the first Coordinator of the Finance Department at HEC Paris. From 1973 to his death in 1996, he worked at Paribas as a private equity investor and, subsequently, led its mergers and acquisition teams.
 
Pascal Quiry holds the BNP Paribas Chair in Finance at HEC Paris. After 23 years as an M&A banker, he founded an investment fund that invests in startups and unlisted SMEs. He is also an active investor in several listed companies.
 
Yann Le Fur is a former Affiliated Professor at HEC Paris and is the head of the corporate finance group for Natixis in New York. He is also an active investor in several unlisted companies.

Preface viii
 
Frequently used symbols xii
 
1 Towards A Green, Responsible and Sustainable Corporate Finance 1
 
Section I Financial Analysis 17
 
Part One Fundamental Concepts In Financial Analysis 19
 
2 Cash Flow 21
 
3 Earnings 31
 
4 Capital Employed and Invested Capital 46
 
5 Walking Through From Earnings To Cash Flow 58
 
6 Getting To Grips With Consolidated Accounts 72
 
7 How To Cope With The Most Complex Points In Financial Accounts 90
 
Part Two Financial Analysis and Forecasting 117
 
8 How To Perform A Financial Analysis 119
 
9 Margin Analysis: Structure 144
 
10 Margin Analysis: Risks 167
 
11 Working Capital and Capital Expenditures 182
 
12 Financing 203
 
13 Return On Capital Employed and Return On Equity 219
 
14 Conclusion of Financial Analysis 238
 
Section II Investors and Markets 245
 
Part One Investment Decision Rules 247
 
15 The Financial Markets 249
 
16 The Time Value of Money and Net Present Value 270
 
17 The Internal Rate of Return 286
 
Part Two The Risk of Securities and The Required Rate of Return 299
 
18 Risk and Return 301
 
19 The Required Rate of Return 329
 
Part Three Financial Securities 347
 
20 Bonds 349
 
21 Other Debt Products 370
 
22 Shares 386
 
23 Options 406
 
24 Hybrid Securities 427
 
25 Selling Securities 445
 
Section III Value 469
 
26 Value and Corporate Finance 471
 
27 Measuring Value Creation 491
 
28 Investment Criteria 509
 
29 The Cost of Capital 525
 
30 Risk and Investment Analysis 542
 
31 Valuation Techniques 557
 
Section IV Corporate Financial Policies 589
 
Part One Capital Structure Policies 591
 
32 Capital Structure and The Theory of Perfect Capital Markets 593
 
33 Capital Structure, Taxes and Organisation Theories 605
 
34 Debt, Equity and Options Theory 621
 
35 Working Out Details: The Design of The Capital Structure 639
 
Part Two Equity Capital 659
 
36 Returning Cash To Shareholders 661
 
37 Distribution In Practice: Dividends and Share Buy-Backs 678
 
38 Share Issues 696
 
Part Three Debt Capital 709
 
39 Implementing A Debt Policy 711
 
Section V Financial Management 729
 
Part One Corporate Governance and Financial Engineering 731
 
40 Setting Up A Company and Financing Start-Ups 733
 
41 Shareholders 754
 
42 Choosing A Corporate Structure 779
 
43 Corporate Governance 795
 
44 Initial Public Offerings (IPOS) 807
 
45 Taking Control of A Company 819
 
46 Mergers and Demergers 842
 
47 Leveraged Buyouts (LBOS) 860
 
48 Bankruptcy and Restructuring 876
 
Part Two Managing Working Capital, Cash Flows, Financial Risks and Real Estate 889
 
49 Managing Working Capital 891
 
50 Cash Management 903
 
51 Managing Financial Risks 922
 
52 Managing Operational Real Estate 946
 
Epilogue - Finance and Strategy 958
 
Top 20 Largest Listed Companies 965
 
Contents 973
 
Index 983

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