Book Description

Understanding Financial Statements, 7/E retains its reputation for readability, concise coverage, and accessibility while incorporating the many new requirements and changes in accounting reporting and standards. It gives readers the conceptual background and analytical tools necessary to understand and interpret business financial statements.The book covers the tools and techniques needed to analyze and interpret financial statements, income statements, balance sheets, and cash flow statements.For controllers, CFOs, financial analysts, credit analysts, or business managers who need a valuable reference book. For any individual who wants to learn how to read and interpret financial statements. ... Read more

Reviews (4)

Review - Understanding Financial Statements, 6th Ed.
The presentation of the content assumes that the reader has some knowledge of this content area and at times leaves him/her confused as to what was discussed, making it difficult to understand. Examples that are used are often incomplete and do not provide a complete picture of how statements are generated. As someone who has no knowledge or experience in this area, I found it to be frustrating to read and comprehend the information. Not a good choice if you are a novice. Too bad I could not give it zero stars.

great book
this is a great book for beginers in such a feild. very informative. just what i was looking for.

Enron?
The Preface of this book reveals that the author's daughter "completed three fascinating and challenging years as an analyst for Enron Corporation." Indeed.

Understanding Financial Statements
This is a wonderful book for those who are new to the world of corporate finance and do not have a working knowledge of the language of finance. The definitions are clear and the examples are easy to understand. The book is thorough in its coverage of balance sheet, income statements, statements of retained earnings, and cash flow, and explains how to uncover hidden problems in review of a firm's financial statements. This is a great book for students and those who want to have the mysteries of the financial report revealed. ... Read more

Book Description

The unique, central concept of Techniques of Financial Analysis is the “business system,” an effective and intuitive way of visualizing the key areas of the typical business organization, and the related investment, operating, and financing decisions that drive its performance and value.This cash flow model (see Chapter 1) serves as the basic structure to which all analytical concepts and tools are related, so that the student is always aware of the larger operational and strategic context in which these techniques should be applied to properly understand the process of successful value creation in a business. Such contextual insight is critical in a specialized subject like financial analysis, which is generally taught in a dry, accounting-oriented fashion.The presentation has always been kept up to date and is carefully designed to help the reader visualize the linkage between management decisions and financial performance and value. Very importantly, the book demonstrates the modern requirement to distinguish between cash flow (economic) and accounting-based analysis. It helps the reader to interpret financial reports, develop integrated financial projections, understand basic financial modeling, evaluate business investment decisions, develop the implications of financing choices, derive the value of a business or a security, and understand the support role of economic analysis in achieving shareholder value creation.Every technique and measure is described and demonstrated in the context of the underlying key financial and economic concepts, but without delving into theoretical abstraction. ... Read more

Book Description

Smart, Megginson, and Gitman have created a technologically sophisticated, yet easy to use, book on Corporate Finance.Corporate Finance, 1e, has video interviews with leading scholars such as Myron Scholes, Jay Ritter, Ken French, and many other financial luminaries, along with video clips with business executives from high profile companies such as Intel, Goldman Sachs, and Ford.Practitioners explain how they apply financial theory to solve real business problems.Real-world examples from more than a dozen countries reinforce an applied, global perspective.Understand the nuances of financial theory and how theory is currently evolving using the different videos, integrated flash animated concept tutorials and problem solutions.For example, flash animations allow review of complex topics from portfolio theory to hedging to option pricing.Smart, Megginson, and Gitman created the animations and the videos and integrated them with the flow of the textbook rather than simply creating the clips as an optional add-on.The result: Solid finance coverage within a highly engaging, interactive book that helps one grasp the important elements of financial theory and how that theory is applied in business.You need to see how this book delivers solid coverage coupled with exciting new technology! ... Read more

Reviews (3)

Much Better Than The 9th Edition
I have been a fan of Lawrence J. Gitman's writing style for years. His approach to finance is simple to understand & this is very beneficial for both students & teachers. The 10th Edition of "Principles of Managerial Finance" (Hardcover) has the following improvements:

a. Calculation of "n" in the chapter of "Time Value of Money"
b. Adding the "Free Cash Flow Valuation Model" in the chapter of "Stock Valuation"
c. Adding "Strategic Net Present Value (NPV)" in the chapter of "Risk & Refinements in Capital Budgeting"
d. Having two (2) "Time Value of Money Tables":
d.1. more detailed tables (in terms of more "i"; note: "i" was formerly "k" in the 9th Edition) located at the back of the book
d.2. tables, printed on thick paper, located at the front of the book that is perforated (can be pulled out)
e. Up to date real world examples
f. Better presentation of the topics, notably the topics on Bond & Stock Valuation
g. The Hardcover Edition includes an Excel-based student software on the book's Companion Web Site valid for six (6) months upon activation.

The book comes with a CD-ROM. The exercises have topics listed before them. This is beneficial both for students & teachers (students can EASILY practice what they've learned while teachers can give assignments by simply browsing the topics).

This is an outstanding basic finance book & I haven't found another one that's better. However, outstanding as this book is, there is still room for improvement. My suggestions are:

a. Explain "deferred annuities" (both for ordinary annuity & annuity due)
b. Present the computation of "i" & "n" using algebra (in addition to using the methods presented in the book)
c. Include the process of interpolation in the book proper
d. Fully discuss the "Average Rate of Return"(ARR), "Discounted Payback Period" (DPP), & "Modified Internal Rate of Return" (MIRR) in the chapter of "Capital Budgeting Techniques"
e. Better explain the "Earnings Before Interest & Taxes (EBIT)-Earnings Per Share (EPS) Approach" in the chapter of "Capital Stucture"
f. Correct the error (I believe this to be an editing error) on the formula for standard deviation (Equation 5.3a, page 222, footnote section)
g. Include a "Challenging Exercises Section" for every chapter where the problems are more complex & the topics are NOT stated before them
h. Increase the six (6) month student subscription to the book's Companion Web Site to one (1) year.

Overall, I highly recommend this book to anyone who wants to learn basic finance. This book is well worth buying & KEEPING.

Great Finance Book But Could Still Be Improved
This book, "Principles of Managerial Finance" (9th Edition), is an excellent finance book. It explains financial concepts in an easy-to-understand manner. Gitman gives you a step-by-step guide to understanding finance. Gone are the days when one dreads reading a finance book because of complexity. You'll actually look forward to reading this book. However, there are some items that need to be added/fully explained in the book itself (like how to interpolate, finding the number of periods in the time value of money, calculating free cash flows in valuation, etc.) & there are things that need to be clarified in the cost of capital & capital budgeting techniques sections. Nevertheless, it is still a great book well worth buying.

College Text
Having struggled through many finance courses this text truely brought the area of finance into a much clearer perspective for me. It provides a lot of general knowledge about the field and as a stand alone text is very useful. However, the assignments that accompanied the text definitley lacked substance and did not prove to be worthwhile. ... Read more

Book Description

This cutting-edge financial casebook is divided into four modules: Structuring Projects, Valuing Projects, Managing Project Risk, and Financing Projects. The cases have been carefully selected to reflect actual use of project finance over the past five years in terms of geographic location (the cases come from 15 different countries) and industrial sectors.
* Benjamin Esty, of the Harvard Business School, is one of the leading scholars in project finance.
* Project finance is becoming the financing mechanism of choice for many private firms.
* Cases require the reader to integrate knowledge from multiple disciplines when making a single managerial decision. This integration of functional areas such as strategy, operations, ethics, and human resource management encourages the reader to adopt a more integrative perspective and understanding of the interconnectedness of managerial decision-making. ... Read more

Book Description

Performing Venture Capital Due Diligence the Right Way

Venture Capital Due Diligence provides a clear and complete explanation of the venture capital (VC) due diligence process and shows you how to use it to assess investment opportunities, make smart investment decisions, and increase the return on your overall venture capital portfolio.

This comprehensive guide offers a full explanation of the VC due diligence process, from using screening mechanisms that sort out potential opportunities, to assessing the management qualities, business models, legal issues, and even intangibles of target companies. Structured around a number of carefully crafted questions that venture capitalists often ask when performing due diligence, this book puts you–the reader–in the position of a VC conducting due diligence on a particular company.

In-depth discussions of these questions and their possible answers pull together opinions from many of the major players in today’s venture capital industry, including . . .

• Richard Testa of Testa Hurwitz & Thibeault
• Ann Winblad of Hummer Winblad Venture Partners
• John Doerr of Kleiner Perkins Caufield & Byers
• Craig Johnson of the Venture Law Group
• Don Valentine of Sequoia Capital
• Kevin Fong of the Mayfield Fund

. . . and many others who are qualified to comment on the proper methods of performing VC due diligence and making VC investment decisions.

An essential guide for anyone involved in venture capital investing, Venture Capital Due Diligence helps you uncover potential problems, while showing you where to look and what to look for when conducting VC due diligence. ... Read more

Reviews (4)

This book is a really great resource.
As a new entrant to the field of venture capital, I found this book extremely helpful. Anyone hoping to become a VC should definitely take a look.

Skip it
This book is a disappointment.

Although it is carefully documented, it is almost entirely made up of quotes from secondary sources. If you've read some basic books on private equity, you probably already read most of the sources used in this book. There is little in the way of analysis or any kind of value add.

Don't Skip this Book!
Written in simple format, layman's terminology, and constructed very well. If you are looking to build a business, even have one funded this is a book you have to read. It gives very good perspective and is a great supplement to "The Venture Capital Cycle" and "Venture Capital and Private Equity: A Casebook". The reading is highly informative and the 3 go together exceptionally well.

One of the finest due diligence books I have read.
Justin Camp puts the whole due diligence process into a logical, easy to read, and concise format. I found it both informative and thought provoking. I believe this book would not only be helpful to venture capitalists but entrepreneurs can use it to prepare themselves and their companies to attract vc funding. The book should be a reference work for anyone looking to build or invest in a young company. ... Read more

Book Description

Public Finance provides learners with a balance of expenditure and tax topics along with the information and analytical tools to understand major government policy and finance issues. The book has been praised for its clarity, good organization, and careful explanations of complex issues. ... Read more

Book Description

ROI (Return on Investment) is today's key business tool for measuring how effectively money was spent--yet few marketing managers receive any ROI training at all. Marketing ROIchanges all that, showing marketing pros at every level how to use ROI and other financial metrics to support their strategic decision making.

This comprehensive book details how an accurate working knowledge of ROI is essential for using the latest marketing measurements, and provides insights for gaining the greatest competitive advantage from the skilled use and understanding of ROI concepts.

Reviews (1)

Introducing Rigor to Marketing Spending
With Marketing ROI, Jim Lenskold has introduced a very useful level of financial rigor into what the typically imprecise process of targeting investments in marketing and then measuring their impact on company profits. Two key concepts introduced are how Marketing ROI is correctly calculated (many companies do it wrong), and more importantly, how the Marketing ROI informantion is used to manage marketing investments, looking at the incremental investment in marketing, and its incremental effect on sales and profitablity. Jim covers the subject from a big company perspective, focusing on multi-product, multi-customer segment environments, but the concepts in the book can also be applied to small companies concerned with spending marketing dollars most effectively.

This is a key text to be used along with the latest in customer relationship management techniques and customer information technology to manage the profitability of a company's demand chain. ... Read more

Book Description

Pick the right model for the right moment every time. Whatever your investment philosophy and goals, you’ve probably had trouble at one time or another in measuring the value of a particular asset. Maybe you’ve been wary of the effectiveness of all the valuation models out there and relied on the "guesstimate" approach or simply picked the wrong model for the asset under consideration. Whatever past problems you may have encountered, Damodaran on Valuation will not only convince you of the vitality of the many valuation models available to you, it will help ensure that you develop the acumen needed to select the right model for any valuation scenario. Written by a gifted teacher and respected valuation authority, Damodaran on Valuation offers an overview of the three basic valuation approaches—discounted cash flow, relative, and contingent claim valuation—and the models within these classes. Using plenty of real-world case studies, it explains the purpose of each model, its pros and cons, the steps involved in applying it, and the types of firms to which it is most suited. Soon, you’ll have a solid, practical grasp of tools designed to help you estimate the cost of equity, estimate growth rates, value equity, measure free cash flows to equity, value firms, estimate the value of assets via pricing of comparable assets, and measure the value of assets with option-like characteristics. No model is foolproof. And every valuation is vulnerable to changes in the environment, the economy, and the asset itself. But with Damodaran on Valuation at your side, you can be certain that you’ll have every weapon at your disposal in the battle to accurately determine the value of an asset and to make the right financial decisions under pressure. ... Read more

Reviews (9)

Good but only short version of another
As everyone will agree, this is a good book in valuation tools. With different version of the DCF models, this book is one of the ideal desk reference of security analysis. However, if you also look at the book "Investment Valuation" by Professor Damodaran, you will agree that this one is only a short version of "Investment Valuation". Almost every topic is covered (or copied) from "Investment Valuation".
I gave "Investment Valuation" a 5-star rating. So, for its short version, I give 4-star.

Great book on valuation (mainly equity)
The book is mainly aimed at valuation practitioners and MBA sudents. The book deals with 3 valuation techniques- DCF, relative valuation (based on PE, P/BV, PS multiples) and contingent claims (options). Great insights into determining key variables (PE, PS, P/BV) based on business fundamentals and pro and cons of using each approach. However, the book does not go into enough depth in CAPM and APT. The author assumes that the reader would have a fair idea about financial ratios, fundamentals etc. The best part of the book deals with valuation of special cases like cyclical firms, brands etc. and how corporate restructuring affects value. It also provides great insights into valuation for takeovers and mergers. The author provides a usable framework for valuing intangibles in an acquisition target- what the different sources of synergy are and how to value each in a lucid framework. Overall, a good book to gain a firm footing in investment valuation techniques.

First Rate
This is an excellent book. It serves as both a course in valuation as well as a useful reference tool.

The book is heavily weighted to discounted cash flow analysis, though it also discusses relative valuation (like P/E multipliers) and contingent claims.

Clearly written the book presents in detail simple to complex DCF based models (dividend discount model, free cashflow to equity and free cashflow to the firm). This range of models deal with the complex valuation problem of variable growth. After presenting a model, its limitations and best uses are explained.

He then shows how these models can be used to derive P/E, P/S, and P/BV ratios from fundamentals.

Abundant examples are used to make the material clear.

The book also discusses special situations, e.g., cyclical firms, and distressed firms to mention just a few.

At first glance this book might be mistaken for a "cook book". Lots of formulas and detailed examples of how to work them.

But there is more. And this is where the real "meat" of the book is - underpinning the seeming forest of details and examples - is a valuation logic and philosophy.

If you read this book carefully, you will develop an appreciation for the impact certain fundamentals have on valuation and how they interact with one another. This is much more important than memorizing the formulae in the book.

Also there is some very useful and frank discussion of shortcomings in some of the tools used, including the CAPM and a warning about being seduced into believing that the DCF approach results in certainty.

Valuation involves estimates and formulas (or multiples) are simplifications of very complex real world dynamics. In the businss world, valuation is typically a process of estimating ranges of values for each of several methods chosen (e.g., DCF, market comparables, precedent transacions, replacement value, etc). The resulting matrix of values is then compared (in effect cross checked) to come up with a range of possible values. And here the differences between buyer and seller affect the outcome - different assumptions re the DCF or the cashflow and synergies that can be achieved - come into play to create two different matrices of values - from which the two parties then negotiate the actual price.

The book and its author are well regarded. This particular volume is used in AIMR's CFA study program - which is a measure of its worth.

A good introductory valuation book
This book provides a good introduction for those who want to learn valuation. Explained in simple English, the book describes many tools on how to do the valuation, particularly for stock valuation (DCF, P/E ratio, etc.).

I particularly like the explanation of various models of DCF. The author clearly explains the strengths and weaknesses of each models, possible problems and the solutions to the problems.

However, I found that this book lacks more in-depth analysis of the topics covered. Furthermore, I found that the CAPM model, to some extent, does not truly exist in the real corporate world. I have read many valuation reports from big names in investment banking, many of them do not adopt CAPM (for various reasons that make CAPM unapplicable, which are also inherent weaknesses of CAPM, they just put x% as the discount rate). Only few who still stick to CAPM. There should be a bridge between academic and real world applications. A more detailed discussion on CAPM by the author would resolve this issue.

Damordoran on Valuation
This is a great book. It has a lot of helpful valuation techniques and I find them really useful. I particularly like the part on relative valuation method and the way to solve the problem of evaluating P/E multiple of different countries. Very useful indeed. But there is a missing piece about P/S multiple. It is entirely based on DDM. What about company which is not expected to pay out dividend for the coming 20 years. This is a great book and the basic valuation methods are very well covered and explained. ... Read more

Book Description

An authoritative, in-depth guide to all aspects of credit analysis from the experts at Standard & Poor's

Credit analysis--gauging an issuer's ability to repay interest and principal on a bond issue--plays an essential role in determining how bond issues are rated and priced. Fundamentals of Corporate Credit Analysis provides both analysts and investors with the practical, up-to-date information they need, backed by Standard & Poor's research, data, and experience, to properly assess the credit risk of virtually any entity.

Whether used as a handy all-in-one guide or as a comprehensive training tool, it will give anyone the knowledge and tools needed to dig beneath standard ratings and determine an organization's true creditworthiness.

Book Description

Fundamentals of Corporate Finance (FCF) is written with one strongly held principle– that corporate finance should be developed and taught in terms of a few integrated, powerful ideas.As such, there are three basic themes that are the central focus of the book:1) An emphasis on intuition; underlying ideas are discussed in general terms and then by way of examples that illustrate in more concrete terms how a financial manager might proceed in a given situation.2) A unified valuation approach; net present value (NPV) is treated as the basic concept underlying corporate finance.Every subject covered is firmly rooted in valuation, and care is taken to explain how particular decisions have valuation effects.3) A managerial focus; the authors emphasize the role of the financial manager as decision maker, and they stress the need for managerial input and judgment. ... Read more

Book Description

To accommodate sweeping global economic changes, the risk management field has evolved substantially since the first edition of Value at Risk, making this revised edition a must. Updates include a new chapter on liquidity risk, information on the latest risk instruments and the expanded derivatives market, recent developments in Monte Carlo methods, and more. Value at Risk, Second Edition, will help professional risk managers understand, and operate within, today’s dynamic new risk environment. ... Read more

Reviews (18)

Still useful as reference but check out the competition
Currently the VaR literature is cluttered with books all clamoring for your attention. Thus the potential student of the subject is blessed with being in a position to make a choice. The 'reader from New York' provided a good overview of the relevant literature. IMHO, this book tried to hit a balance between breadth of coverage (different models in practice) and depth (rigour), but the result is a compromise that leaves neither the student of the subject nor the practitioner satisfied. Since other reviewers have done such a good job dissecting this book, I will just concentrate on recommending the books that I feel are better values: For beginning students I feel Kevin Dowd's provides a good overview of the VaR literature in a clear and concise way. For pracitioners and more advanced risk mangement students, I HIGHLY recommend Glyn Holton's new Value-at-Risk Theory and Practice book. His approach is totally refreshing. Instead of starting at the top of the pyramide (the value-at-risk metrics), he starts out at the bottom. He breaks down VaR into its most basic elements. By providing a detailed explanation of difference between exposure and uncertainty, he introduces readers to the mathematical and probabilitistic background material needed to formulate the VaR measure (methodology) and the metrics (resulting VaR value). Both Kevin Dowd and Glyn Holton's presentations are organized and their writing are crisp and easily understandable. You won't go wrong with either book.

No longer useful
The first edition was for a while the only book on the subject. As such, it had to be the best. But, at that time, RiskMetrics VCV approach was the only approach. Jorion analyses this approach in detail, and derives many results (for example, attributing risks, etc.). He then implies by omission that they work for other methods, they don't. He also implies by omission that RiskMetrics is the absolute greatest, it isn't - it's probably now the weakest method. Surveys show that now only 10% of banks worldwide are using this method - and the numbers are falling.

There is nothing about coherence, the problems with VaR, the fundamental problems with using it to allocate risks to portfolios...
There was no reason to bring out a new edition.

Good Book for sophisticated investment analyst
Good Book for sophisticated investment analyst

Value at Risk
The financial and banking sectors have changed dramatically over the last two decades. The traditional commercial banks are shying away from loans and relying on riskier (??) products such as derivatives to bolster the income. Non-bank financials have been consistently adding products and product lines to their inventory (insurance & loans??). As these firms change themselves, their need for risk measurement and management has also increased which in turn has driven the advances and increased focus on Value at Risk type concepts during this time.

Despite improvements in measuring risk the newspapers are full of stories where risks have been mismanaged. Jorion?s introductory chapters on risk management failures are good at proving why risk management is important. I think beginners would find the chapters that define the different types of risks (credit, liquidity, operational, legal & market), the role of VaR in regulatory capital measurements, and the first part of the VaR discussion as being useful. The chapters that specifically deal with credit, operational, and liquidity risks are also important though the author does not cover these topics as deeply as he covers VaR.

I understand that this book used to be the bible for managing financial risk. I still think it?s an extremely useful book, but agree with some of the other commentators that it could have been more than it is. With an industry that changes as quickly as the financial sector you?d hope for some more detail on current trends and events besides Basel II. (Role of new products such as credit derivatives? Do firms really care about incremental VaR or Marginal VaR, and if they do when? When is it practical to use? How do firms use it? Who are the current leaders in the techniques?). I would also have liked to see more on reputational risk (how do firms decide if a product is appropriate for a client? how would the public perceive a firm?s transactions with a particular client? Enron and WorldCom are current examples).

The difficulty in writing about this subject is that it?s very easy to be too complicated and detailed for beginners but not complicated or detailed enough for professionals. For example, beginners may have difficulties with the material if they don?t understand basic financial concepts, but professionals are probably looking for more specifics on how these concepts are applied for specific products. I?d imagine that there aren?t many readers in that middle ground. This book is definitely geared more towards the professional.

Better Alternatives
This book was rushed into print following the release of JPMorgan's landmark RiskMetrics description of VaR. Like RiskMetrics, its focus is on explaining VaR to corporate end users. For a while, it was the only book available on VaR, so it became well known. A second edition added material on topics other than VaR, but did not update the treatment of VaR. By today's standards, the book is dated.

Now there are a number of excellent books available on VaR, and these cater to various audiences. Depending upon what you are looking for, they offer a more accessible, more sophisticated, or more up-to-date treatment of VaR.

For an elementary introduction, you can't beat Butler. Downplaying theory, he shows you practical spreadsheet examples you can use to implement basic VaR models. He explains related topics, such as probability distributions, delta and gamma, and the Monte Carlo method, so the book is self-contained.

Marrison's "Measuring Market Risk" describes VaR in the context of bank risk management. More sophisticated than Butler, this is a practical, "real world" book for people starting in bank risk management. Marrison ties VaR together with topics such as capital allocation, credit risk modeling and asset-liability management.

Holton is written for practicing risk mangers or researchers. Before it even publishes, it has made a splash on trading floors where dog-eared preprint copies have become a coveted item. Holton explains in detail things like delta-gamma VaR and variance reduction for Monte Carlo VaR -- topics other books only mention. Also, Holton is the only book that offers exercises.

For use of VaR in investment management, see Pearson's "Risk Budgeting." It introduces VaR and then explains how it can be used to allocate assets between investment categories or among managers -- this is known as risk budgeting. The focus of the book is a technique from calculus that allows you to decompose risks so that the parts sum to the whole. There isn't much else written on this topic, and Pearson offers the best treatment that I know of.

Finally, there is Dowd's "Beyond Value-at-Risk." This provides an excellent survey of the literature on VaR. It also covers related risk management topics, including credit risk management and risk-adjusted performance measurement. ... Read more

Book Description

You're 36 hours away from mastering finance...Expense reports... balance sheets... budgets... financial statements... are you one of the myriad managers and entrepreneurs who dread trying to decipher-or, worse, prepare-baffling documents like these? To the rescue comes The McGraw-Hill 36-Hour Course in Finance for Non-Financial Managers-an easy, self-paced course that demystifies everything from accounts receivable to zero-based budgeting. In just 36 painless hours financial expert Robert A Cooke shows you how to: read balance sheets and evaluate financial reports; keep tabs on sales and track expenses; put a budget together-and administer it; justify equipment costs and compute depreciation; analyze most any firm's income, earning, cash flow, and other vital statements.|You're 36 hours away from mastering finance- Expense reports-balance sheets-budgets-financial statements-are you one of the myriad managers and entrepreneurs who dread trying to decipher-or, worse, prepare-baffling documents like these? To the resuce comes The McGraw-Hill 36-Hour Course in Finance for Non-Financial Managers-an easy, self-paced course that demystifies everything from accounts receivable to zero-based budgeting. In just 36 painless hours financial expert Robert A. Cooke shows you how to: read balance sheets and evaluate financial reports; keep tabs on sales and track expenses; put a budget together-and administer it. justify equipment costs and computer depreciation; analyze most any firm's income, earnings, cash flow, and other vital statements. ... Read more

Reviews (4)

Breathes life and energy into a potentially dry subject.
This book starts teaching before chapter one even gets under way by setting the expectation that you really can learn (and better, apply) finance no matter what you're trying to do.

The sample situation that follows all the way through the book really helps focus on the concepts being taught. Some of the examples are humorous and some make you want to share what you're reading with a loved one.

I bought this book because I'm just starting to deal with the budget aspects of network management, and needed to figure out how to lay out what I want to do technically to non-technical folks who have the company checkbook. I already know what I want to do, how much it will cost - demonstrating benefits and describing it in language the "C" team - CEO, CFO - speaks really helps.

One of the best discoveries for me while reading this book is that in addition to helping me achieve the goal above, I found the concepts are applicable to budgeting for the home as well.

It's definitely worth a read!

Finance made easy
I'd definately recommend this book to anyone who feels phased by finance. Either as a refresher course to revamp finance skills long gone or for newcomers to the subject. The material is very relevant and extremely readable which makes an otherwise droll subject quite lively and interesting. I would have given this book 5 stars but being the pedantic reader that I am, I discovered that some of the calculations were actually inaccurate and, even worse, the answers to the review questions were wrong too. This doesn't help when you're not a natural number cruncher and need solid accuracy to assist in the learning process. Needless to say, its still a fundamentally good book and I know I'll be referring to it over again to make sure the basic concepts stick.

I'd give it six stars if I could! Fun To Read
OK. You're reading about this book because some brilliant mind at your company decided you should head up the financial decision-making department of your company. Never mind that you majored in Italian and never studied finance! Or, you are new to business and want to start your own company, and you know you need to know a bit about bookkeeping and financial management. Congratulations! You've found the right book.

"The McGraw-Hill 36-Hour Course In Finance For Nonfinancial Managers" is a great little book. Every small business owner who hasn't formally studied finance should read it.

Robert A. Cooke covers it all-- sales, cost of sales, expenses, buying, leasing or doing without, the balance sheet and income statement, and much more. This is not a bookkeeping text per se. "The McGraw-Hill 36-Hour Course In Finance For Nonfinancial Managers" teaches finance which is a broader topic. A strategic topic needed for successful growth of a company.

Unlike many introductory small business books, "The McGraw-Hill 36-Hour Course In Finance For Nonfinancial Managers" does a really good job discussing budgeting and long-range planning. Using the numbers to plan rather than just recording them for the sake of tax-reporting purposes is what finance and financial decision-making is all about.

Further, Cooke makes financial business planning, which is considered by many to be a boring topic, rather fun to read. He follows the new fictional start-up company, The Spouse House Company. The company makes little sheds, Spouse Houses, for spouses who are in the dog house and who need a little shed in the backyard to hang out in until trouble blows over and domestic tranquility is restored.

The book ends with a short self-test you can take to see if you have retained the information covered in the book. But, hey, this is real life and not school. You don't have to take the short little test if you don't want to. Nor do you have to work out the short review questions. But, I'd recommend you do.

"The McGraw-Hill 36-Hour Course In Finance For Nonfinancial Managers" is not only very readable, but reads quickly at only about 270 pages. That means you will be able to read it twice.

In addition to "The McGraw-Hill 36-Hour Course In Finance For Nonfinancial Managers," if you are starting your own business, you should also pick up a copy of "Small Time Operator," which covers taxation dates and issues, and a copy of my own "Thinking Like An Entrepreneur." These three books will give you a strong tripod base upon which to build your small business and entrepreneurial finance knowledge.

Peter Hupalo, Author of "Thinking Like An Entrepreneur."

Excellent use of Humor to teach Finance
Robert Cooke use humor throughout the book to help nonfinancial manager understand financial reports. The use of the Spouse House Firm throughout the book allows you to see the develop of financial reports as they apply to a small growing firm. Robert writes as he is right in front of you talking to someone he has known for a long time. He uses humor to help you understand the difficult concepts of the book. If you are looking to learn financial statements or just refresh your skills this is the book I recommend. ... Read more

Book Description

Harvard Business Essentials

Your Guide and Mentor to Doing Business Effectively

In the faced-paced world of business today, everyone needs a personal resource-a place to go for advice, coaching, background information, or answers. Bosses and colleagues aren't always available when you need them-and they might not always have the most reliable solutions to your business problems right at hand.

The Harvard Business Essentials series fills the gap. Concise and straightforward, these books provide highly practical advice for readers at all levels of experience. Whether you are a new manager interested in expanding your skills or an experienced executive looking to stay on top, these solution-oriented books give you the reliable tips and tools you need to improve your performance and get the job done. Harvard Business Essentials titles will quickly become your constant companions and the trusted guides you'll turn to throughout your business career.

Finance for Managers Calculating and assessing the overall financial health of the business is an important part of any managerial position.From reading and deciphering financial statements, to understanding net present value, to calculating return on investment, this book provides the fundamentals of financial literacy.Easy to use and non-technical, this helpful guide gives managers the smart advice they need to increase their impact on financial planning, budgeting, and forecasting. ... Read more

Reviews (1)

Essential, Yes, and for Many, Invaluable
This one of the volumes in the new Harvard Business School Essentials Series. Each offers authoritative answers to the most important questions concerning its specific subject. The material in this book is drawn from a variety of sources which include William J. Bruns, Michael J. Roberts, and Robert S. Kaplan as well as Harvard Business School Publishing and Harvard ManageMentor®, an online service. Each volume is indeed "a highly practical resource for readers with all levels of experience" but I think those who have only recently embarked on a business career will derive the greatest benefit.

This volume explains the basic concepts of finance to managers who are not financial managers. As Richard Luecke notes in the Introduction, "Knowing how to finance assets, forecast future cash flows, maintain a budget, determine which operations are profit generators and which are not, and judge the real economic merits of different investment opportunities will help you stay in business and turn a profit." Samuel L. Hayes served as subject advisor to Luecke, writer of this and other books in the Harvard Business School Essentials Series and author or developer of more than 30 other books as well as several dozen articles.

There are ten chapters followed by an Appendix: Activity-Based Budgeting. (More about that material in a moment.) Each chapter is introduced by a list of "Key Topics" to be covered in it. For example, in Chapter 5, the focus is on start-up financing, financing current operations, financing growth, establish a proper match of assets with financing, and typical financing arrangements. Obviously, all of this material may seem basic (if not self-evident) to the experienced financial manager but keep in mind that the material was carefully selected for managers who are not financial managers.

One of the most informative discussions is provided in the Appendix when brief but sufficient attention is given to "Developing Cost Drivers" and more specifically to activity-based budgeting (ABB) and how it differs from activity-based costing (ABC). Less experienced non-financial managers are frequently asked to prepare a report which, more often than not, involves a budget or at least a cost analysis. A basic understanding of ABB and ABC will guide and assist the completion of that task. Whereas ABC starts with the cost of resources, allocates these costs to activities, and then allocates these costs to products and/of services, ABB starts with the planned product or service, estimated sales volume, and mix and comes up with the requisite activities to produce the mix and volume.

Financial managers as well as non-financial managers who supervise other non-financial managers should seriously consider providing copies of this book to those who currently do not understand "how to finance assets, forecast future cash flows, maintain a budget, determine which operations are profit generators and which are not, and judge the real economic merits of different investment opportunities" which will help [their organization] stay in business and turn a profit." Of course, younger executives need not wait for such provision. Published as a paperbound volume and priced attractively, Finance for Managers would be a modest investment for them to make in their own careers. ... Read more

Book Description

The most complete guide to business valuation written by industry-leading valuation specialists! Handbook of Business Valuation Second Edition In this thoroughly revised and updated edition of the number-one guide to business valuation, nearly 50 experts provide expert advice and guidance on all facets of the subject. This is a single-source guide to valuation approaches and methods, in addition to all of the procedures necessary to accurately value a business. The Second Edition of the Handbook of Business Valuation enables you to find precisely the information you need; just go directly to the chapter concerning the topic you are interested in. There is no need to read the entire volume-it's quick and easy. This is the only valuation book you need. It provides chapters on valuing specific businesses, such as: software companies, radio and cable stations, medical practices, home-based businesses, and many more, plus a special chapter on researching business valuation information on the Internet.
* An entire chapter on commonly used rules of thumb
* Business valuation from the perspective of the buyer, seller, lawyer, lender, and others
* All updated information, plus much that's new
* Important sections on family limited partnerships, intellectual property issues, minority interests, and much more ... Read more

Book Description

Updated and revised to reflect the mostcurrent information, this introduction to futures and options markets isideal for those with a limited background in mathematics. Based on Hull's Options, Futures and Other Derivatives, one of thebest-selling books on Wall Street, this book presents an accessible overview of the topic without the use of calculus. Packed withnumerical samples and accounts of real-life situations, the Fifth Editioneffectively guides readers through the material while providing them with ahost of tangible examples.For professionals with a career infutures and options markets, financial engineering and/or risk management. ... Read more

Reviews (3)

Great Book!
I needed to understand everything I could about Futures and Options in a short time and this book was perfect for that purpose. The introduction about futures and options is great and the content in general is very easy to understand and follow. I really liked the examples and the way the author explained each topic. However, I have to confess that maybe my engineering background helped me to understand the math behind, but I believe that even if you don't have much mathematical knowledge you can follow the book.

A big plus of this book is that it contains a chapter about Value at Risk and one focused more on more recent types of derivatives contracts (e.g., energy, weather, etc.).

In general, I think that with this book you could cover more ground more quickly than with other books.

Great Book!!
This book is a great introduction to options and futures, I do not have any university experience in mathematics and was able to follow nearly all that I have read so far. However, if you are not comfortable with substituting into equations and following equation derivations, maybe option/futures trading is not for you.

You better know your math
The book is a good book IF you know your math. It has been a while since I have done calculus and finance classes and needed to review other books in order to understand all the math. I laughed at the introduction when the author stated math is not needed. While this is partially true, it is because the author expects the reader to memorize his formulas and so omitts some of the steps of how the formulas come about. Do not try to do this book without help or even better yet, without the solution manual. It was a grueling class with more than 1/2 the class dropping it because the book was so hard to understand. ... Read more

Book Description

A practical guide to taking your company public—successfully This updated version of the Ernst & Young Guide to Taking Your Company Public looks at the IPO as a milestone in a larger process called The Value Journey^sm, the basis for the work of the Ernst & Young Center for Strategic Transactions^®, a business advisory resource for CEOs. This practical book is designed to help you determine whether an IPO is the right move for your company and addresses the major leadership challenges that CEOs face. It describes how to plan your IPO journey and chart your business strategy, focusing on the steps you must take to succeed during and after the IPO event and fulfill the critical need to continuously innovate and renew your company. ... Read more

Reviews (4)

Good, easy-to-read textbook. Not not a great guide.
About the book

Based on research questioning about 500 executives who took IPOs between 1986 and 1996. So, most IPOs came from companies who had been profitable for a few years. After the collapse of the Internet stocks, the context is similar, but I believe such profit records may not be as important as during 1986-96.

Published in 1999. So, it has comments to imply "being first makes the company valuable without profits".

About the authors and their style

Authors are experienced in their job of bringing IPOs.

This book is not at all in the class of books by Al Ries and Jack Trout, but more like a text book, covering every related point (from text book point of view). There is no prioritization or difference in emphasis of the importance of various issues involved.

Their diagram on cover of book is confusing because they have used 2-dimensions to show a linear 1-dimension process, which essentially are their recommended steps.

Book's Message

1. Define goal/success. IPO may not be the best way to achieve that.

2. Plan and start working on IPO at least one year ahead of the need.

3. Many specific to-do items: · Revise salaries as variable salaries that include stocks rather than just cash. · Plan personal estates. Give gifts before IPOs to family members to minimize future tax liability. Hire CPA for this planning. · Hire Earnst & Young early. · Clean books of accounts-use GAAP. · Build strong executive team. · Start working like a public company at least one year before-that is-create quarter-to-quarter profitability guidance and exceed them. Create reports such as needed by SEC. · Build external Board. Create committees of Board members.

If you want to read just 7 pages, read these: 25, 37, 56, 65, 74, 108, 170

MasterGuide for IPO (US)
Aimed at executives considering an IPO, the 'IPO Value Journey' is also of use to staff in pre/post-IPO companies to understand about market perceptions of companies & ideal "success factors".

The lightly referenced, well structured chapters span: the CEO's journey; the journey's early vital steps; chart your transaction strategy; chart your personal strategy; create the winning team; complete your IPO platform; be the public company; the IPO event; and deliver the value. Useful appendices span: outline for a business plan; selecting the stock market; registration exemptions and resale restrictions; overview of the SEC and SEC rules and regulations; simplified registration under the small business disclosure system; and glossary.

Strengths include: the concise factual (dry) writing style; good use of exhibits and checklists; and useful easily-accessible content addressing legal, accounting, reporting, board issues (amongst others).

Weaknesses include: need for more sidebar success story anecdotes (which integrate the steps); mostly US focus; and relatively superficial analysis evidence supporting the success factors and 'journey' metaphor.

Overall, a very useful working book, to be read with something like 'Confessions of a Venture Capitalist' (ISBN 0446526800) or 'E-boys' (ISBN 0812930959), for a fuller life-cycle, energetic view of the IPO journey.

Must read for all executive management
This was a highly readable discussion of the issues most companies will encounter during the 'going public' process. It conveys a lot of the experiences of preparing to go public that are not normally available in one book. Excellent coverage of strategy, accounting and reporting issues, SEC disclosure requirements, and the IPO event. Although the writing is accessible to a non technical reader, highly technical topics are well covered.

IPO handbook for CEOs
I found this book had just the right amount of detail for the CEO without becoming tiresome. It gives a very good overview of the IPO process and provides plenty of recommendations to guide you along the way. ... Read more

Book Description

Praise for Financial Valuation

"The book has a wealth of detail, practice tips, examples, and extra information, plus sections on business valuation situations not addressed elsewhere. A valuable addition to the literature of business valuation."
–– Shannon Pratt, CFA, FASA, MCBA
Managing Director, Willamette Management Associates
Managing Owner, Business Valuation Resources, LLC

"The book sets a fine example in technical yet readable exposition. As the text flows, it is evident [the twenty-five authors] have taken great steps toward achieving uniformity reflecting the various opinions within the profession.This goes a long way toward reinforcing proven methodologies and validating their ‘real world’ application. The well-thought-through categories–starting with Standards of Value–and legal insights with ‘tried and true’ cases reveal and attest to the depth of [the authors’] experience in business valuation and litigation consulting.
"All of the topics appeal to practitioners of all levels. Value-adding ‘ValTips’ are quite helpful in stimulating broader consideration of each subject and elevating the reader’s perspective."
–– Parnell Black, MBA, CPA, CVA
Chief Executive Officer
National Association of Certified Valuation Analysts

"This book takes the consensus of many talented appraisers and presents topics in a fashion that has not been seen before in any other valuation treatise.Many of the same old topics are presented, but this time, even I was forced to take a much closer look. This unique approach to many of these topics is a must for the well-rounded appraiser."
––Gary R. Trugman, CPA, ABV, MCBA, ASA, MVS
Trugman Valuation Associates
A Rachlin Cohen & Holtz Company

"This is a unique publication in that it brings together twenty-five nationally recognized names in the valuation industry to provide practitioners with their consensus ‘school of thought’ on many commonly encountered valuation issues. The author list includes analysts from all the valuation organizations with many current or former members of the AICPA Business Valuation Subcommittee and the AICPA BV Hall of Fame. An excellent reference source for CPAs looking for guidance from some of the top valuators in the nation."
––Thomas E. Hilton, MS, CPA/ABV, CVA
Chair, AICPA Business Valuation Subcommittee
Partner, Anders, Minkler and Diehl LLP

Coauthors: Mel Abraham, Jim Alerding, Terry Allen, Larry Cook, Mike Crain, Bob Duffy, Ed Dupke, Nancy Fannon, John Gilbert, Tom Hilton, Greg Koonsman, Eva Lang, Mike Mard, Harold Martin, Mike Mattson, Jim Hitchner, Steve Hyden, Ray Moran, Charles Phillips, Jim Rigby, Ron Seigneur, Robin Taylor, Linda Trugman, Don Wisehart, and Mark Zyla. ... Read more

Reviews (1)

Review of "Financial Valuation: Applications and Models"

Jim Hitchner, a name well-known to ABVs and other valuation practitioners, conceived the novel idea of bringing together twenty-five highly visible and well-respected valuation professionals to present the group's collective views and positions on business valuation concepts and applications. Each of the authors is a coauthor of the entire book. The authors, many of whom are ABVs and instructors for the AICPA's national business valuation educational program, include Mel Abraham, Jim Alerding, Terry Allen, Larry Cook, Mike Crain, Bob Duffy, Ed Dupke, Nancy Fannon, John Gilbert, Tom Hilton, Jim Hitchner, Steve Hyden, Greg Koonsman, Eva Lang, Mike Mard, Harold Martin, Mike Mattson, Ray Moran, Charles Phillips, Jim Rigby, Ron Seigneur, Robin Taylor, Linda Trugman, Don Wisehart, and Mark Zyla.

The result of this collective effort is "Financial Valuation" - a text that presents a compilation of "best practices" for the business appraiser.

"Financial Valuation" covers the obligatory fundamentals found in most other introductory texts. What sets this text apart from others is its focus on applications and methods. The text contains numerous practical examples and discusses alternative approaches for tackling those complex issues that are often encountered in the real world of valuation practice. This focus makes "Financial Valuation" an indispensable tool for even the most experienced appraisers. Some of the text's highlights include:

Chapter 4, Income Approach to Value, discusses the alternative income valuation methodologies and includes a detailed example of the excess cash flow (earnings) method.

Chapter 5, Cost of Capital/Rates of Return, includes a comprehensive presentation on the application of Ibbotson data for determining risk premiums in discount and capitalization
rates.

Chapter 6, Market Approach to Value, discusses alternative market valuation methodologies and presents a quantitative method for using and adjusting guideline public company multiples for size and growth differences.

Chapter 9, Report Writing, presents a detailed valuation report with numerous comments on why certain items were included or excluded.

Chapter 12, Family Limited Partnerships, presents a detailed case study on the valuation of a Family Limited Partnership including the selection of discounts for lack of control and
lack of marketability.

Chapter 13, Court Case Issues and Review, includes synopses of over 40 tax court cases organized by major valuation areas of dispute.

Chapter 16, Valuation in the Divorce Setting, discusses the complexities of valuing ownership interests in closely held businesses for divorce purposes, including a discussion of relevant state case law, standard of value, applicability of discounts and premiums, etc.

Chapter 18, Valuation Issues in Professional Practices, provides an overview of the issues involved in valuing professional practices such as medical, law, and accounting practices.

Chapter 19, Valuation of Healthcare Entities, includes two detailed case studies: a surgery center and a hospital.

Chapter 20, Valuation of Intangible Assets, includes a detailed case study on an allocation of purchase price for a business combination under new SFAS 141.

Chapter 21, Marketing, Managing, and Making Money in a Valuation Services Group, presents practical guidance on how to operate a valuation practice.

Chapter 24, Valuation Views and Controversial Issues, presents a discussion of subjective and difficult areas of valuation in the form of a case study/report format.

The text also includes hundreds of "ValTips" which alert the reader to important and often controversial topics. The accompanying "Financial Valuation Workbook" provides a detailed case study, models, and exercises that can substantially reduce a beginner's learning curve and assist the experienced practitioner in better organizing the valuation process. The Workbook follows the valuation engagement format and is organized by standard, easily identifiable sections that allow for easy reference.

SUMMARY
"Financial Valuation" gets two enthusiastic thumbs up! ... Read more

Book Description

Short-term financial management skills are increasingly important. Written by authors who both hold Certified Cash Managers credentials, this comprehensive book offers broad coverage of treasury and working capital management, while using valuation and the cash flow timeline as integrating themes. Its complete coverage includes current developments in treasury management, banking deregulation, globalization of financial services delivery, e-commerce, international cash management and foreign exchange risk ? all with a decision-making emphasis throughout. In addition, Short-Term Financial Management highlights examples of companies using the Internet for treasury management and other emerging trends. ... Read more