Book Description

Aswath Damodaran is nationally recognized for his teaching approach, using theory and the models that flow from it to understand, analyze and solve problems. He treats corporate finance as a living discipline by making it much more applied than other textbooks. Throughout the text, real companies and real data are used in examples and exercises. ... Read more

Reviews (5)

Exceptionally well written book
This is a very well written book. We have used this book for our financial management class Howard University. I personally proud to know that there are still people like Prof. Damodaran out there, people who can make time to ensure that knowledge is freely available to the students. Prof. Damodaran is one the best minds that has ever happened to the field of Finance.

The Practical Guide
Compared to many other Corporate Finance books I enjoy this one for a structure of the presented material , clear explanations supported by real examples, concept checks , odd numbers answers (provided at the end of the textbook) to the exercises. Definitely it gives me a guidance to handle many everyday cases.
This one is the first Corporate F. book I used to study without feelings of something boring , abstract , overloaded by awesome math.
I would give 5 stars if Online Study Tools had items: "eGrade Self-test" , "Business Extra" materials (as specified - Coming Soon!) and (to many Chapters)- "Additional Readings" from business articles / websites.

Excellent in Content Simplicity to a Complex Subject
I have used the previous edition, and could not wait to received the updated (2001) edition. The book is well written for the layman, but yet challenging enough for the pro. The information is timely and comprehensive but most importantly, the examples and the numerical and mathemetical demonstrations are meaningful and easy to follow. In effect using this text suggests that one gets two for the price of one, that is, a Finance and a Mathematics/Statistics exposition for the price of only "corporate finance."

Readable, but lacks a clear presentation of key principles
This is my first corporate finance textbook at the graduate level. Damodaran's presentation is straight-forward in terms of its logical order, and his language is very readable. My key complaint -- and it recurs throughout the book -- is that the author does not clearly lay out theory before moving into detailed real-world applications. As a result, often the reader is left reverse-engineering key concepts from case studies. The first few times you have to do this, it seems challenging, but by the tenth or twentieth chapter you've had it. It's got some elements of a great book, but because of its lack of clarity I can only give it 3 stars.

Wonderful book!
The concepts are easy to understand. The author provides many examples to illustrate how the theory works. I recommended this book to my friends who are interested in finance, and at least 16 people bought it through amazon.com. ... Read more

Book Description

Case Problems in Finance is a Harvard case course presenting real business situations that pose debatable alternative courses of action. The cases contain problems that can be narrowed but not always settled by the usual techniques of financial analysis. It will teach students to discover ways of thinking that are productive in handling different types of managerial problems intelligently.The cases are grouped by major topics: financial analysis and forecasting, cost of capital, working capital management, capital budgeting, dividend policy, debt policy, financial execution, and mergers and restructuring. ... Read more

Book Description

Praise for Building Financial Models with Microsoft Excel

"Scott Proctor offers a comprehensive and easy-to-understand guide to constructing and using financial models; I recommend this book as a tutorial and a reference for business professionals, entrepreneurs, venture capitalists, and angel investors."
–Jack M. Gill, PhD, Vanguard Ventures

"This book is about making good decisions. . . . The modeling tools described in this book establish an analytical framework which adds much needed clarity to effective decision-making. This in-depth guide should well serve experienced professionals as a reference and business students and entrepreneurs as a tutorial."
–Eugene V. Fife, Retired Chairman, Goldman Sachs International

"Excel has become a critical element for decision-making in the modern business environment.Mr. Proctor’s book is a solid introduction to utilizing this complex tool."
–William Polk Carey, Chairman and Founder, W.P. Carey & Co. LLC

"Readable, comprehensive, and engaging–buy this book; study it; and thereby build your capacity to harness the computer in the solution of real-world business problems."
–Robert F. Bruner, Distinguished Professor of Business Administration and Executive Director of the Batten Institute, Darden Graduate Business School, University of Viginia

"Proctor provides a thoughtful and coherent link between financial/accounting theory and common Wall Street practice by addressing key questions in financial modeling like what to build, how to build, and how to analyze."
–Reid Nagle, Chairman and Founder, SNL Financial LC

"This book offers an excellent guide to building financial models. Proctor guides readers through the many interrelated steps involved in constructing and using financial models, a vital skill in today’s business world."
–Jeffrey Nuechterlein, Managing Partner, Isis Capital

"Building Financial Models with Microsoft Excel takes a complex but critical subject and presents it in a concise, easy-to-follow fashion. This book is an indispensable reference guide for anyone who needs to build or analyze financial models using Microsoft Excel."
–Michael R. Lincoln, Partner, Cooley Godward LLP

"A get-serious, get-gritty modeling enabler that is thoughtfully written and executed."
–Robert Albertson, Principal and Chief Strategist, Sandler O’Neill & Partners, LP ... Read more

Book Description

"Earned value" is a project management technique that is emerging as a valuable tool in the management of all projects, including and, in particular, software projects. In its most simple form, earned value equates to fundamental project management.

This is not a new book, but rather it is an updated book. Authors Quentin Fleming and Joel Koppelman have made some important additions. In many cases, there will be no changes to a given section. But in other sections, the authors have made substantial revisions to what they had described in the first edition.

Fleming and Koppelman’s goal remains the same with this update: describe earned value project management in its most fundamental form, for application to all projects, of any size or complexity. Writing in an easy-to-read, friendly, and humorous style characteristic of the best teachers, Fleming and Koppelman have identified the minimum requirements that they feel are necessary to use earned value as a simple tool for project managers. They have also witnessed the use of simple earned value on software projects, and find it particularly exciting. Realistically, a Cost Performance Index (CPI) is the same whether the project is a multibillion-dollar high-technology project, or a simple one hundred thousand-dollar software project. A CPI is a CPI … period. It is a solid metric that reflects the health of the project.

In every chapter, Fleming and Koppelman stick with using simple stories to define their central concept. Their project examples range from peeling potatoes to building a house. Examples are in round numbers, and most formulas get no more complicated than one number divided by another.

Earned Value Project Management—Second Edition may be the best-written, most easily understood project management book on the market today. Project managers will welcome this fresh translation of jargon into ordinary English. The authors have mastered a unique "early-warning" signal of impending cost problems in time for the project manager to react. ... Read more

Reviews (12)

Unique book about a powerful project management tool
This is the only book that I know of that is totally devoted to earned value project management. Before proceeding with a review I believe that a few facts about earned value project management are in order.

First, earned value project management has graduated from a tool that was little known outside of the Department of Defense contracting community to a mainstream project control tool. This milestone occurred when it became a part of the Project Management Institute's Project Management Body of Knowledge (PMBOK).

Second, "earned value" is a misunderstood term. I have had clients who thought it was a consultant's trick to raise prices or hide the true costs of projects in a bunch of mumbo jumbo. Just the opposite is true - earned value is a proven, powerful tool with which to control project costs and schedules. If you use it any poor estimating from the project planning phase will become quickly apparent, allowing you to recalibrate the project before it gets out of control and cannot be salvaged. As an aside, I use a heuristic that boils down to: if you are 15% off cost or schedule by the time you are 15% into a project you will not recover using your original baseline. Earned value project management techniques will give you ample warning before you drift into an unrecoverable situation like that.

The authors have distilled thousands of pages of DoD instructions and guides and lessons learned from the inception of the Cost/Schedule Control Systems Criteria (C/SCSC)into a 141 page book that thoroughly covers the subject. The C/SCSC is where earned value was first defined in the late 1960s.

I like the way the book is structured. It starts with a brief overview of earned value, from where it came and how it finally managed to escape from the bureaucratic world of DoD to become an integral part of the PMBOK. This overview segues into a chapter titled Earned Value Body of Knowledge, which is where the book gets interesting. This is followed by seven chapters that step you through how to correctly plan, schedule and control projects based on earned value.

The key strength is the authors demonstrate how projects are traditionally planned and controlled, and the pitfalls of this approach. For example, using cost/funding where you get a budget, develop a spend plan and then attempt to determine a project's health by comparing the burn rate to the spending plan is like flying blind. Why? The cost components are not integrated with schedule components. This results in controls that will never reveal any relationship between budget and schedule, and is a big reason why projects too often have cost or schedule overruns.

By demonstrating problems with traditional approaches to project management the authors lay the groundwork for how to employ earned value to avoid these problems. They start by systematically stepping through a project, starting with scoping, followed by planning and scheduling. This material is excellent and on the mark. It introduces you to work breakdown structures, organizational breakdown structures, and how the two intersect to form control accounts (the authors use the term "cost account", but my background has instilled "control account" into my vocabulary).

Earned value really begins taking shape in chapter 7, Establish Project Baseline, where the book quickly picks up pace. While earned value is simple in concept, there are many subtle elements that usually become apparent only with experience. The authors highlight these subtle elements, such as examples of how to interpret interrelationships between planned vs. actuals of work, cost and schedule. They provide standard tools such as schedule and cost performance indices (SPI and CPI), and add new wrinkles, such as "to complete performance index" (TCPI), which is a powerful management tool that I only discovered a few years ago.

The best reason for reading this book is it will give you the tools and techniques with which to properly plan projects and prevent cost and schedule overruns. If you are pursuing the Project Management Professional certification this book is the best single source of information that I know of on earned value. Everything you need to know about earned value is packed into 141 pages of a book written by two renowned experts on this subject.

Earned Value Concepts you can use
This is one of the easiest to understand books on project management I have read! Quentin provides background and history for the Earned Value concepts and explains them in a simple and usable way. This book is a must read for project managers who need to really tell how their projects are doing! CSCS folks will learn how the system was supposed to work! Daniel Coza

One of the best books on Earned Value!
The reader that is familiar with Project Management Institute books will find it extremely useful and connected to real life. Presents Earned Value definition and how is possible to organize your projects based on Earned Value principles. If you're interested to have results oriented projects, or if you're interested in project performance, or project monitoring, this book is really helpful. I highly reccomend you to read and use it. If you like "not so academic" books, you might find it a little bit too condensed, and probably you'll need to search for something else. Microsoft Projects offers very good definitions of Earned Value, Cost Performance Index and Schedule Performance Index that you might learn as first steps.

Just Enough
Earned Value Project Management provides project managers with "just enough" to understand and begin using earned value analysis on projects. Koppelman and Fleming have distilled a complex and often intimidating subject and have made it immediately applicable to projects in any industry. I use this book to explain EVM concepts to my students and find it an invaluable tool in my own work as a project manager.

OVERLY COMPLICATED
IF YOU ENJOY READING DOCTORAL DISSERTATIONS THEN BUY THIS BOOK.

Microsoft Project 2002 calculates Earned Value and explains the concepts in PLAIN ENGLISH in the help menu.

This is a typical PMI publication:
POORLY WRITTEN, OVERLY COMPLICATED and BORING. ... Read more

Book Description

In his classic bestseller Venture Capital Handbook, leading venture capitalist David Gladstone showed thousands of companies how to get funding and work with early stage investors. Now, in his revision of the classic, Venture Capital Investing, he looks at venture capital through the eyes of the investor. Gladstone shows all of you VC investors and angels exactly how to weed through scores of business proposals and find the gem that will deliver outstanding returns, especially in these soft economic times. You will learn what to look for in a business proposition; how to assess entrepreneurs and their management teams; how to evaluate financial statements, market niches, competitive environments, and product innovations; how to investigate a business that's already operating; and how to build effective partnerships with existing portfolio companies.

Reviews (2)

VC Investing Basics
Much updated from previous editions, David Gladstone's useful text provides a very cursory survey of deal and investment techniques, albeit for slightly later than "sexy" stage deals. However, as this book is designed for the novice, and as Lipper's text has fallen out of print, this sadly remains the only general text on VC investing for the inexperienced, and is useful in context of the level which it is designed to educate. While the many checklists may be somewhat annoying to seasoned VCs, they are probably indispensable to the novice investor, since they provide a summary framework when working through deal and business terms. And while the book is designed more for later stage (through certainly not LATE stage, as some have alluded to) deals, the book is, again, designed to educate the novice venture investor, who really shouldn't be doing high tech start-ups anyway. Irrespective of that, anyone who presumes to write a text on investing in high tech start ups would likely find his text applicable only for the next few months after printing. Ours is an industry that evolves very quickly, and changes rapidly in accordance to the latest trends. No one can teach you how to pick the winners in the trend that hasn't happened yet. Getting the basics from a text like Gladstone's, however, can give you the fundamentals on which to build that "knack".

Insightful!
This book is a thorough, practical guide to the nitty-gritty of venture capital investing. This comprehensive, well-organized instruction manual summarizes the homework you should do before you make a venture capital investment, the paperwork needed to carry out the investment and the ongoing work you will have to undertake to have a prayer of seeing your investment pay off. If it is a little plodding, you can understand why. It covers a lot of ground. The authors compare venture capital investing to a partnership at one point, to a marriage at another. They don't attempt to sell you on venture investing. In fact, by telling you how difficult and labor intensive it is, they may even drive you away. We believe this book definitely belongs in the library of anyone who has ever taken a serious interest in venture investing. It will also help entrepreneurs who need venture capital financing by showing them how to evaluate their companies according to the criteria that serious investors are apt to use. ... Read more

Book Description

Cases and notes included are designed to provide an understanding of the history of the private equity industry's development, and the workings of the industry today.
* Examines both the short-run and long-run effects for private equity investments.
* Author is a leader and one of the most respected authorities in this field. ... Read more

Book Description

This book is designed to simplify the process of attaching a dollar amount to intangible assets, be it for licensing, mergers and acquisitions, loan collateral, or investment purposes. It provides practical tools for evaluating the investment aspects of licensing and joint venture decisions, and discusses the legal, tax, and accounting practices and procedures related to such arrangements; examines the business economics of strategies involving intellectual property licensing and joint ventures; and provides analytical models that can be used to determine reasonable royalty rates for licensing and for determining fair equity splits in joint venture arrangements. ... Read more

Book Description

Corporate finance and corporate strategy have long been seen as different sides of the same coin. Though both focus on the same broad problem, investment decision-making, the gap between the two sides--and between theory and practice--remains embarrassingly large. This book synthesizes cutting-edge developments in corporate finance and related fields--in particular, real options and game theory--to help bridge this gap. In clear, straightforward exposition and through numerous examples and applications from various industries, Han Smit and Lenos Trigeorgis set forth an extended valuation framework for competitive strategies.

The book follows a problem-solving approach that synthesizes ideas from game theory, real options, and strategy. Thinking in terms of options-games can help managers address questions such as: When is it best to invest early to preempt competitive entry, and when to wait? Should a firm compete in R&D or adopt an accommodating stance? How does one value growth options or infrastructure investments? The authors provide a wide range of valuation examples, such as acquisition strategies, R&D investment in high-tech sectors, joint research ventures, product introductions in consumer electronics, infrastructure, and oil exploration investment.

Representing a major step beyond standard real options or strategy analysis, and extending the power of real options and strategic thinking in a rigorous fashion, Strategic Investment will be an indispensable guide and resource for corporate managers, MBA students, and academics alike.

... Read more

Book Description

Applied Equity Analysis treats stock valuation as a practical, hands-on tool rather than a vague, theoretical exercise—and covers the entire valuation process from financial statement analysis through the final investment recommendation. Its integrated approach to valuation builds viable connections between a firm’s competitive situation and the ultimate behavior of its common stock. Techniques explained include EVA, newer hybrid valuation techniques, and relative multiple analysis. ... Read more

Reviews (3)

Probably the best
I've been looking for a practical step by step book on equity analysis from a practitioners viewpoint. This is it. Other books try to take shortcuts. This book does not take short-cuts, but neither is it bogged down with unncessary academic exercises. If you really want to understand how to do valuation and applied equity analysis I can't recommend any book more highly. It is head and shoulders above anything else out there. Penman's book (from Columbia Business School) is also good but it is a VERY serious and weighty book that probably should only be attacked after you have read this one. Get this book by English and you will not be sorry. I have spent way too much time reading hundreds of other books that weren't nearly as educational. Again, however, it is only for the serious investor.

Very readable, very insightful, and extremely practical
James English's "Applied Equity Analysis" is a how-to manual on evaluating stocks based on his 20 years of experience at JP Morgan. The book is very well-written and readable since the author employs plain english (no pun intended) to make his three major points: 1) accounting numbers--while by no means perfect--are excellent tools in evaluating stocks, 2) accounting-based stock valuation is superior to (but does not neccessarily supplant) cash flows, and 3) competition ensures that eye-popping financial performance doesn't last forever.

Contrary to another reviewer, English employs excellent examples to clarify and explain his points. Some examples: Gateway 2000's earnings history was used to explain how to find and interpret non-recurring items (NRI) on financial statements. Ratio analysis was demonstrated by looking at the PC industry in 1998. Emerson Electric was the company chosen to show why mature companies were still good buys. Many other examples abound, and English does a successful job in tying their relevance to his arguements.

But successful use of examples is not just the only strength of the book. The author also tackles a range of topics complete with insightful and clear discussions: the flaws of the Efficient Market Hypothesis (EMH), Economic Value Added (EVA), financial statement analysis, fundamental analysis, etc.

A quick glance at the table of contents below gives you an idea of the scope of English's book. I highly recommend this book to not just Wall Street analysts, anyone who is interested in finding fundamental value in evaluating stocks instead of following the crowd.

Pt. 1 Getting Started
Ch. 1 A Day in the Life
Ch. 2 Fundamentals of Equity Valuation
Ch. 3 Strategy and Competition I: The Firm's External Environment
Ch. 4 Strategy and Competition II: The Firm's Internal Competitive Resources
Ch. 5 Fundamentals of Stock Behavior
Pt. 2 The Basic Tools
Ch. 6 Reading a Financial Statement: The Accuracy, Sustainability, and Predictability of Financial Information
Appendix 6-1 Gateway Financial Statements
Ch. 7 Reading a Financial Statement: the Composition of Returns
Appendix 7-1 Comparative Financial Analysis: Personal Computer Industry
Ch. 8 Reading a Financial Statement: Early-Stage Companies and Investment Capacity
Ch. 9 Reading a Financial Statement: Later-Stage Companies and the Transition to Maturity
Ch. 10 Economic Value Added: An Alternative to Traditional Analysis Techniques
Appendix 10-1 Gateway's Cost of Capital
Pt. 3 Financial Models
Ch. 11 Financial Modeling: Base Case Assumptions and Model Design
Appendix 11-1 Dell Computer Corporation Consolidated Statement of Income
Ch. 12 Financial Modeling: The Income Statement and Balance Sheet
Ch. 13 Financial Modeling: The Statement of Cash Flows
Pt. 4 Equity Valuation
Ch. 14 Valuation: Foundations and Fundamentals
Ch. 15 Combat Finance: Relative Methods and Companion Variable Models
Ch. 16 Hybrid Valuation Techniques
Ch. 17 The Quirky Price/Earnings Ratio
Ch. 18 Valuation of Speculative Stocks
Ch. 19 Equity Analysis and Business Combinations
Pt. 5 Getting It Down on Paper
Ch. 20 Financial Writing: Don't Bury the Lead
Bibliography
Index

too academic
I think the book's treatment of valuation is too academic. The author should use more practical examples. ... Read more

Book Description

Praise for Valuation for M&A

"Clearly written, with extensive but easy-to-follow exhibits to illustrate points in the text. It covers everything from setting criteria and conducting the search for targets or acquirers, through several chapters on valuation, to a chapter on ‘The Art of the Deal’."–Shannon P. Pratt, CFA, FASA, MCBA, Managing Director, Willamette Management Associates

"[An] easy read. Covered like no book before it, simplified by experts!"–Lawrence W. Newman, Senior Vice President and Chief Financial Officer, Underwriters Laboratories Inc.®

"A solid contribution to the valuation profession . . . excellent job of addressing the many unique issues that arise in M&A... Two thumbs up!"–Jay B. Abrams, ASA, CPA, Abrams Valuation Group

"Provides an excellent roadmap for the M&A process and focuses on the elements critical to building value in private businesses ... Don’t enter into a negotiation without reading this!"–Z. Christopher Mercer, ASA, CFA, Chief Executive Officer, Mercer Capital Management, Inc.

"A must read for managers of private companies intent on creating value. Combining academic rigor with real-world experience ...A superb addition to the growing literature on value-based management."–Kenneth M. Lehn, Professor of Business Administration, Katz Graduate School of Business, University of Pittsburgh, Chair of the Samuel A. McCullough Finance Department, Former Chief Economist at the U.S. Securities and Exchange Commission ... Read more

Reviews (4)

Practical, accurate, hands-on book
I'm working on acquisitions of small to medium sized private companies. I found this book to be very practical in going through not just the valuation math, but also the considerations. The book gives a great overview of the whole process, with ideas of how to get more precise with things like Monte Carlo and Real options. On the core pieces, there is a careful step through of multiperiod DCF including terminal value which is very helpful. Also there is a lot of talk about discount rates which I found very helpful.

The book concludes with a thorough valuation example that is adapted from a real transaction. It provides a great way to pull together all of the knowledge in the book.

I'd also recommend "Analysis for Financial Management" in addition to this book, for its in depth treatment of key financial fundamentals, including DCF valuation.

"How-To" Apply Solid Valuation Theory
This book meets important needs of buyers, sellers, valuation analysts, and owners of private companies who want to build value in them. Here are just a few of the important functions that the reader will learn:

1. How to apply solid valuation theory. Provides the best treatment of many valuation issues that I have seen. This set of benefits goes far beyond M&A valuation settings.
2. How to value "synergy," which is often discussed but rarely measured accurately.
3. How to avoid mistakes commonly made by buyers, sellers, and valuation analysts.
4. How to value start-up companies, including high-tech ones.
5. How to create and measure value in private companies.

And...the authors communicate their insights and methods very clearly. Most readers will find this book one of the best investments they have made.

Must read for business owners, valuators and M&A people
I am a professional business valuator and had a good understanding of the valuation process before I read this book. However, I did not know much about mergers & acquisitions (M&A). After reading "Valuation for M&A" I not only gained a clear understanding about M&A, but I got many additional insights into valuation work as well! Mr. Evans and Mr. Bishop break their book down into 16 well constructed chapters that take you through valuations for M&A step by step, with each step building on the previous one. They then tie it all together at the end of the book and provide an excellent case study as a bonus. The case study alone is worth the price of the book. This is a must read for business valuators, M&A professionals and business owners thinking about buying a new business or selling the one they own now.

Perfect for these times
This is the definitive text available today on the subject of vauation of businesses for purposes of merger or acquisitons. It is a valuable guide for business appraisers and business owners who are seeking to sell their business or groom it for acquistion by another comany. The section on how to build value in a company for later sale is alone in the literature. The book is written for all readers, and the authors are themselves business-owners and appraisers. I will use this text regularly in my own practice, especially in the analysis of synergy value. ... Read more

Book Description

This significant new guide to finance has a broader scope and greater emphasis on general principles than most other books of its kind, which typically focus exclusively on corporate finance. Acclaimed authors Bodie and Merton offer an approach balanced among the three "pillars" of finance—optimization over time, asset valuation, and risk management.Encompasses all subfields of finance within a single unifying conceptual framework. Offers the "big picture" of resource allocation over time under conditions of uncertainty. Focuses on personal finance topics, such as saving and investing, as well as asset valuation. Provides spreadsheet modeling exercises in the accompanying Prentice Hall Finance Center CD. MARKET: Ideal for executives or for anyone seeking a solid understanding and overview of the field of finance. ... Read more

Reviews (8)

DO NOT WASTE YOUR MONEY
This book is the worst finance book I've come across. I had to resort to a past finance book in order to get through the class that this book was assigned for. It has no mathematical basis for serious students of finance. There are numerous typographical errors.
An excerpt, "To give a simple example, consider the choice between alternative A - you get $100 today - and alternative B-you get $95 today. Suppose you had to guess how a stranger, about whose preferences and future expectations you nothing at all, would choose." This is UNIVERSITY LEVEL MATERIAL?!?
Do yourself a favor, look somewhere else and do not buy this [book]

Thumbs part way up
Like others, I too first saw this book in paper. I am now using it to teach a class of law students -- smart kids but mostly without great numeracy. I think it is working okay but (like so many coursebooks?) perhaps not as well as expected. One problem is indeed the typos -- I'm a sloppy writer myself and typos are my incubus, but with all the beta testing and with all the publisher support, you would think they could have done better (indeed, I sent my own list to the publisher back in the beta days -- I got a nice thank you but I don't see my name in the acknowledgments, so I suspect they hit the trash). Aside from that -- the presentation seems mostly clean and straightforward, but quite often too elliptical for my students -- I've felt I had to do a lot of backgrounding. Unlike other reviewers, I quite like the problems -- I think some of them press the envelope a bit, but that is just fine with me, exactly what they should do. I do feel that the authors bring together a remarkable lot of stuff in a compact and orderly manner. In this respect with this book as with so many other coursebooks, perhaps it is the case that the teacher is getting more out of it than the student.

This book should not be used for graduate level study
I was required to purchase this book for an MBA class in Business Finance. To put it simply, this book is terrible. There are errors in calculations from front cover to back. The describers used to name calculations are changed from page to page, without any consistency whatsoever, requiring a flow chart to understand what it is Bodie and Merton are discussing. Nobel prize or not, Mr. Bodie and Mr. Merton should be embarrassed to publish such trash.

Also, the way the questions are worded in the end of chapter reviews leave little relevance to what was taught in the preceding pages. Often questions that are asked are open-ended and very ambiguous.

I would not recommend this book to anyone and have asked my University to stop using this book because it is so flawed.

Riddled with errors
I am an MBA student-this was one of the worst textbooks I think I have ever had the misfortune to use. It was riddled with errors, which took me an hour to transcribe from the publisher's website. My entire class was confused by the end of chapter questions, which in some chapters seemed to have no connection to what was taught in the chapter. I and everyone else in my class wondered all along the way if we could trust what we were reading as being accurate. Stay away from this if you value your time and your sanity.

Readable intro. to standard finance theory
First: this book is certainly not worth [the price] ...I read the 1998 softcover 'preliminary edition' by Bodie and Merton, which I ordered and received from amazon.com in fall, 1999. Samuelson's name was not on the cover and at any rate should not cause the price of the book to increase... The current price makes the book unattractive. Now for my review of the softcover version:

This is a relatively well-written undergraduate-level text that can be read/understood without the need for classroom instruction. It is especially useful for self-study by ordinary people who know nothing at all about finance theory but are motivated to learn. The reader will find all of the main topics covered: cash flows, efficient market hypothesis, capital asset pricing model (CAPM), risk management, hedging, and options pricing at Black-Scholes (B-S) level of discussion. In the spirit of the simple level of the text, the B-S equation is applied but not derived (best derivation is still the second one, and the Black's original method starting from the CAPM, in the famous 1973 Black-Scholes paper). 'Fat tails' (known and largely ignored since Mandelbrot, 1962) and non-risk-neutral hedges, the frontiers of modern finance theory, are not discussed. Throwing the traditional 'financial-engineering' bone in the direction of fat tails, implied volatility is discussed because in practice fat tails can't any longer be ignored. All in all, the book is recommendable to physics grad. students who want to learn finance terminology along with the main (wrong) ideas believed by the finance theory community. As an example of the book's weaknesses, the authors assume that the vague, undefined notion of 'fundamental value' makes sense, and that liquid markets are in some vague, undefined sense 'efficient' although the notion of a relaxation time is never mentioned. Typical finance theorists' shortcomings aside, this book can profitably be read before (or at least parallel with) Hull and other harder texts on derivatives. Liars' Poker and Fiasco can also be read profitably in parallel with this book. No knowledge of neo-classical ('marginal utility') econ (as is excesively taught in Samuelson's standard text) is required, and is at any rate is useless for finance theory/practice. ... Read more

Book Description

Details of the 20 best management strategies for operational risk

"Finally, we have a comprehensive, practical tool for operational risk. This book covers all critical aspects of operational risk, from simply how to get started to the complex modeling of the risk. The case studies are especially useful."
–Mark Balfan
Senior Vice President and Group Head, Corporate Risk Management
Bank of Tokyo Mitsubishi

"Doug Hoffman was in the business of managing operational risk before most and it shows. His book is both comprehensive and to the point–a tough combination to achieve."
–Simon Wills
Director, British Bankers’ Association

"Operational risk has become a central issue in the management of enterprise risk and for capital adequacy standards for financial institutions. Doug Hoffman is among the very few pioneers in developing an understanding of operational risk, the discipline of operational risk management, and related capital attribution standards for economic and regulatory capital. This book will become a reference work for the financial services industry and financial regulators."
–George J. Vojta
Director, Financial Services Forum

"In a quickly evolving area, this book provides a balanced and thorough discussion of the variety of approaches a bank can use to establish a risk management and measurement system for operational risk. The book presents a solid conceptual analysis of the issues to consider, paired with practical guidance."
–Barbara Matthews
Banking Advisor and Regulatory Counsel, The Institute of International Finance, Inc.

Managing Operational Risk is the answer for executives and operational risk managers of financial firms who want to establish the best policies for bridling operational risk at a firmwide and enterprise-wide level. The techniques and practices presented here include:

• Dynamic risk monitoring and reporting–implement a continuum of data and risk tools for effective identification, assessment, mitigation, and finance
• Risk assessment, modeling, and risk-adjusted performance measures–calculate, monitor, and manage the effects of operational losses on firmwide and business unit levels
• Operational risk technology and systems–ensure program efficiency by leveraging technology in enterprise-wide data gathering
• Market perception–develop a plan and ongoing discipline for protecting corporate integrity and managing crises that may impact a firm’s reputation, brand, or franchise
• Insurance and risk finance programs–design, evaluate, and fine-tune insurance and developing financial programs for operational risks

Reviews (10)

Good Introduction
I am new to the field of operational risk and this book provided a good introduction. It is readable and practical. I especially found the discussion of Banker's Trust's operational risk department and methodology fascinating. This book is actually readable unlike so many others in the field.

Too much and not enough!
This book is good for those who already know what OpRisk is all about, or at least are familiar with banking terms and financial measurement systems. If you are new to the game, you are likely to become very frustrated.

Mr Hoffman throws a multitude of operational risk "building blocks" on the floor in the opening chapter, tells us that we will use them to build a "house", picks them up one-by-one and explains them - sometimes well, sometimes poorly. If you already have the big picture, i.e. you know what the finished "house" is supposed to look like, you will be able to follow - most of the time (see below). If you know little or nothing about OpRisk, I am fully convinced that the book would be easier to understand backwards - i.e. the chapters are read in reverse order (no joke).

There are also several points in the book which had me scratching my head at the consistency of it all! To pick just one example, on page 186 there is a list of what Mr Hoffman calls "Top Down" and "Bottom Up" risk assessment methodologies. In this list, "Delphi Scenarios" is listed as one of the TOP DOWN methods. Two pages later, under the heading "BOTTOM-UP RISK ASSESSMENT METHODS", Delphi Scenarios are discussed/mentioned!!! What is it really - a Top Down or Bottom Up method??

There are several other examples throughout the book likely to cause more than a little confusion to the attentive beginner.

Highly Recommended!
Timely and dense, this comprehensive treatment of risk assessment and management maps the minefield of business and financial risks. Although professional-level information on banking and financial risk management cannot avoid a certain intensely mathematical character, this volume also pays careful attention to the "softer" side, and stresses the importance of cultural and attitudinal factors. It is a very well-balanced presentation of the subject. However, this very valuable information is written in a turgid, repetitive, convoluted and confusing style that makes it a chore to read. This risk could have been managed by a ruthless editor able to cut half of the undergrowth to clear a path to the meaning. Are advice to bankers and risk managers: brew some strong coffee and slog through the text. The content is too important to ignore.

Useless
I found this book to be very theoretical and not practical at all. Save your money!

Informative Read
Douglas Hoffman's extensive experience in the field of operational risk shines through in this book as he takes operational risk out of the classroom and applies it to real world examples. This is an insightful read for any operational risk professional. ... Read more

Book Description

Case Studies in Finance, 4/e links managerial decisions to capital markets and the expectations of investors.At the core of almost all of the cases is a valuation task that requires students tolook to financial markets for guidance in resolving the case problem.The focus on value helps managers understand the impact of the firm on the world around it.These cases also invite students to apply modern information technology to the analysis of managerial decisions. ... Read more

Reviews (4)

WARNING-These are only cases, almost NO content
I bought this book to read outside of a class hoping to read through some really good case studies in finance, and hopefully apply several semesters worth of finance classes to some real world examples. However after receiving the book I realized that these were only cases, not case studies, meant to be discussed in a class. There is almost no content, and college professors would actually be better off building their own cases from current business publications.

Good Finance book
The cases in this book will make one think more than other books in this area.

Bravo to Bruner!
Case Studies in Finance and its instructors manual are absolutely the BEST of their kind in all the years I've been teaching finance and strategy. Bravo to Bruner! I've never seen an instructor's manual so complete. The At-a-Glance section has been very helpful when structuring a course design. Case Studies in Finance and its supplements are being used by the finance faculty at ESADE Business School, in Spain, as a guide to restructure their first year core finance course in the Full-Time MBA programme.

Excellent, made the subject practical
The book was excelleant, but I never knew if the answers I provided were correct, is there no model answers on the case studies that one could check one's answers against. I am a final year MBA student in South Africa with no real previous Finance experience and this book really assisted me in gaining a practical understanding. Please let me know about model answers ... Read more

Book Description

The clear market leader in the corporate finance course, this text filled a very definite need for a MODERN corporate finance text back in 1983 when the first edition was published. It is known for its intuitive, conversational style and for being able to tie together many of the important ideas in corporate finance. The author's discussions and illustrations are unique due to the depth of detail blended with a distinct sense of humor. This new edition will continue to be authoritative and student friendly but will also carry stronger, modern coverage reflected by current examples and data as well as unique emphasis upon agency issues. ... Read more

Reviews (60)

npv
I had to read a few chapters from this book for one of my finance classes. At first I was very skeptical of the text because of the authors' obsession with CAPM, beta, and modern portfolio theory. These concepts make no sense at all. They only serve to illustrate that even the most elegant mathematical models of the world have little practical value if the underlying assumptions are wrong. Very soon, however, my initial prejudice towards the book began to disappear. Eventually, I read the entire textbook, which wasn't required by my instructor. I still believe that CAPM and modern portfolio theory are all wrong but I was fascinated by authors' extensive discussion of NPV and Capital Structure. NPV, indeed, is the only proper way to value any business venture and no compromise can be made in this respect. Brealey & Myers got that one right.The book is well written and most of the examples and explanations are easy to comprehend...

CORPORATE FINANCE BIBLE ON WALL STREET
I have used this book three times now: as an undergraduate in financial economics, at the training program at an investment bank, and at the core finance course at my MBA. It is a very good resource and learning tool, going from the very basic ideas of discounting all the way to options pricing and more innovative finance.

This is the preferred learning tools of all finance professors I have met and the reference used by all finance professionals I met. It is very simple to follow the concepts of the book, especially if you purchase the study guide that is available with it.

The only major concern I have heard is that it does not deal with the more recent finance problems of off-balance sheet financing and other shenanigans. This is a book meant to teach basic financial theory, so those topics, in my opinion, are better treated elsewhere.

Excellent seller....quick delivery
Received the book in perfect conditions and in short period of time!! Thanks...

A solid introduction to corporate finance
This Brealey and Myers's textbook, now in its 7th edition, introduces the student to the fascinating world of corporate finance. The first few chapters of the book demystify Net Present Value, the preferred method for calculating the value of an investment project. Brealey and Myers then explain how risk and return are related and introduce the Capital Asset Pricing Model. The CAPM's strengths and weaknesses are both explored in detail. The authors continue by analyzing the significance of dividend policy and debt policy for a corporation -- including the rather surprising result that in perfect markets these just don't matter! The next topic is options, financial and real; major pricing models are covered, and warrants and convertibles get a fair treatment, too. The remaining parts of the book deal with a variety of topics such as valuing debt, managing financial risks, financial planning as well as mergers and corporate governance.

At 1071 pages, Principles of Corporate Finance can hardly be called a short book. Introductory textbooks often suffer from a "too-much-too-little" syndrome, in that numerous topics are covered, but none too well. Brealey and Myers easily avoid this pitfall. Their writing is solid and manages to keep the reader's interest. Although available space puts a limit on what can be said, the book's coverage is quite comprehensive and well linked to the results of modern research. Moreover, all topics receive their fair share of treatment so you can actually understand the theories the book presents. It should be noted here that some mathematical background is probably necessary to make the book easy reading.

Each chapter contains many problems which can be used to facilitate the learning process. I found them very useful. The only complaint I have about the book (International Edition) is that the binding proved less than perfect, as after a while pages started separating from the main body of the work. But that is a problem I can live with.

All in all, an interesting, readable, authoritative introduction to corporate finance.

Classic that Needs to Address New Products
This is the classic text, but it only gets four stars for not keeping up with new developments. The capital structure of corporations can be easily changed with off balance sheet transactions: off-shore vehicles, total return swaps, and derivatives. This was Enron's downfall, and total return swaps on a corporations own equity are merely hidden loans that are toxic convertibles. The credit default swap market alone grew to $2 trillion from only $200 billion 6 years ago, and total return swaps (another credit derivative) have grown even more exponentially. Anyone interested in finance will also want to read "Credit Derivatives" by Tavakoli which explains these products and their uses. ... Read more

Book Description

Praise for Private Capital Markets

"Until now, professional literature has included very little on the subject of valuing larger, closely held businesses. This book meets a long-standing need for a scholarly, yet practical, way of addressing the values of nonpublic enterprises. It should be read by everyone who is involved in appraising, buying, selling, or financing privately owned businesses."
––Raymond C. Miles
Founder and Technical Director
The Institute of Business Appraisers

"Since CPAs are involved with most financial aspects of private companies, we need resource materials that are comprehensive in nature. This book, without a doubt, offers the single most integrated approach to valuation, capital structure formation, and business transfer issues available. It is an essential guide for practitioners who represent middle-market private clients."
––Norman F. Manley, CPA
Partner, Tax
BDO Seidman, LLP

"This is the first book that surveys the private capital markets. It is an important addition to the literature since it is both well-written and easy to understand.Finally, academics and practitioners have a book that provides financial education to those who own, work, or are interested in establishing their own companies."
––Dr. Edward M. Mazze
Dean and the Alfred J. Verrecchia—Hasbro Inc. Leadership Chair in Business
College of Business Administration, University of Rhode Island

"Although lawyers routinely counsel private business owners on a wide variety of business topics, including financial matters, law schools currently provide very little, if any, grounding with respect to practical private business finance. This book will equip all professional advisors with a theoretical and practical underpinning of the private capital markets."
––John Morrice, Esq.
Johnston, Allison & Hord, PA

"At last, a book that deals with the financial needs of Main Street companies! The ideas and frameworks contained in Private Capital Markets will definitely help business owners make better financing and investment decisions."
–– L. Kerry Vickar
Chairman
CorrFlex Display and Packaging, LLC ... Read more

Book Description

As auditing shifts from an outsourced function to a cornerstone of internal control, audit directors need an updated manual that reflects the radical changes the internal audit profession recently experienced in order to establish efficient processes for conducting successful audits. Managing the Audit Function, Third Edition, provides a blueprint for the creation of an effective procedures manual for an internal audit department.

A new chapter defines internal control, risk assessment, control strategies, and malicious activities. This subject should be studied and understood not only by internal auditors but by all managers and board members as well. The recent developments with accounting irregularities demonstrated a clear need for an education on the complex subject of internal control.

By implementing the methods recommended in Cangemi and Singleton’s authoritative guide, auditors can play an integral role in improving overall corporate performance. Among other services, the Third Edition:

• Provides a discussion of what world-class audit departments are doing with Baldridge criteria, balanced scorecard, and other continuous improvement techniques
• Contains unique matrices that describe each component of the audit function in detail, from administration to performance to reporting
• Includes standards for information systems auditing
• Offers a discussion of quality assurance and marketing
• Delivers a new section on the internal control system, which includes models, tools, and techniques, that should be read by all senior management and board members

By following the manual, auditors can ensure that they are following the guidelines for internal control that both the Foreign Corrupt Services Act and the Committee of Sponsoring Organizations (COSO) require. The authors also present a sample procedures manual on an available Web site:
www.wiley.com/go/audit manual.

Each page of the manual has a heading consisting of a generic company name, title of the manual (Corporate Audit Department Procedures Manual, if appropriate), section number, revision number, and the date of the revision. The authors have written much of the text this way as a boilerplate that can be used to easily create a unique, modifiable, dynamic manual. In this shifting accounting landscape, effective auditing procedures are absolutely essential to appropriate internal control. Managing the Audit Function, Third Edition provides internal auditors the reliable resource they need.

Praise for Managing the Audit Function

"The corporate governance issues, accounting irregularities, and legislative actions that have taken place over the past two years have elevated the role and importance of the internal audit function. Managing the Audit Function provides a valuable guide and reference tool for those charged with either executing or overseeing this function."
–– Daniel S. Kaplan, Business Risk Services Partner
Ernst & Young LLP

"It was refreshing to read Internal Audit literature with the appropriate focus on information systems and information systems auditing, since computer systems play such a key role in the processing of accounting transactions and the performance of business operations in today’s business environment."
–– William J. Powers, Partner, National Director
Information Systems Assurance Services
BDO Seidman, LLP

"Cangemi and Singleton have created a knowledge management tool for the creation of quality audit manuals and functions. Managing the Audit Function is an important book for all audit managers, and with the addition of new and updated material, including information on the implications and requirements of the Sarbanes-Oxley Act, it provides the information to keep pace with changing conditions affecting the audit function."
–– Robert S. Roussey, Professor of Accounting
Leventhal School of Accounting, University of Southern California
International President, Information Systems Audit and Control Association

" This is basically a procedures manual for an internal auditing department that has been prepared by two of the world’s most knowledgeable IT auditors. The book is a handy tool because examples are given throughout of relevant audit documents, such as audit reports, responses to reports, responses to delinquent responses, matrices, checklists, and flowcharts. Every audit department should have this book as a reference manual."
–– Dale L. Flesher, PhD, CPA, CMA, CIA, CFE, CGFM
Professor of Accountancy and Associate Dean
University of Mississippi ... Read more

Reviews (2)

Invaluable Resource for Internal Audit Administrators
A very well organized and highly useful publication for audit executives responsible for administrtion of internal audit departments. It is especially beneficial and relevant to organziations with newly established internal audit functions. As the chief auditor of a newly formed group at a major footwear and apparel company, I have relied on this book almost daily to provide knowledge, guidance and direction. It has, and continues to be, invaluable in the development and growth of my organization's internal audit department and has facilitated my focusing on doing things right the "first time." A truly value-added publication!!

A Must Have . . .
This publication is perhaps the most useful, well organized and valuable resource I have ever come across in the area of Internal Audit Department Administration. As the Director of Internal Audit of a newly formed Audit group at a major footwear and apparel company, not a day passes where I do not refer to this book for knowledge and guidance. It has provided me invaluable insight into administering a department and on focusing on doing things right "the first time." It is a must have resource for any department, new or old, that wants to build itself into a world-class function. I recommend this to every Internal Audit organization. ... Read more

Book Description

Obtain valuable guidance from today's financial leaders. First published to universal acclaim over ten years ago, The CFO Handbook has been updated and revised by editors Marke E. Haskins and Benjamin R. Makela to reflect changes in the profession during the tumult of the 80s and 90s. Among the many topics covered are: determining financial policies, budgeting, defining goals and rewarding performance; creating and implementing mission, values and strategy; assessing international risk and controlling global operations. The CFO Handbook is written for, and by, financial leaders! Just look at a few of the esteemed CFOs and/or financial professionals who have contributed chapters to this landmark volume: Robert M. Agate, Colgate Palmolive; Caroline Dorsa, Merck & Co.; Michael Grobstein, Ernst & Young International; Thomas G. Manoff, Saturn Corp.; Robert J. Chrenc, AC Nielsen; A. Nicholas Filippello, Monsato Company; George B. James, Levi Strauss & Co. . .and many more! ... Read more

Reviews (1)

Wonderful Book
Excellent book for anyone starting a business moving on to the next level. Gives a vbery intensive view of the position of the CFO and their responsibilities. Brought out many of the details of the position often overlooked. Kudos to the authors. ... Read more

Book Description

Over the last 150 years the corporation has risen from relative obscurity to become the world's dominant economic institution. Eminent Canadian law professor and legal theorist Joel Bakan contends that today's corporation is a pathological institution, a dangerous possessor of the great power it wields over people and societies.

In this revolutionary assessment of the history, character, and globalization of the modern business corporation, Bakan backs his premise with the following observations:

• The corporation's legally defined mandate is to pursue relentlessly and without exception its own economic self-interest, regardless of theharmful consequences it might cause to others.

• The corporation's unbridled self-interest victimizes individuals, society, and, when it goes awry, even shareholders and can cause corporations to self-destruct, as recent Wall Street scandals reveal.

• Governments have freed the corporation, despite its flawed character, from legal constraints through deregulation and granted it ever greater authority over society through privatization.

But Bakan believes change is possible and he outlines a far-reaching program of achievable reforms through legal regulation and democratic control.

Featuring in-depth interviews with such wide-ranging figures as Nobel Prize winner Milton Friedman, business guru Peter Drucker, and cultural critic Noam Chomsky, The Corporation is an extraordinary work that will educate and enlighten students, CEOs, whistle-blowers, power brokers, pawns, pundits, and politicians alike. ... Read more

Reviews (25)

A coolheaded call to action
This is a very readable exploration of the characteristics of the corporation as an institute. The author contends that the modern corporation "can neither recognize nor act upon moral reasons to refrain from harming others. Nothing in its legal makeup limits what it can do to others in pursuit of its selfish ends, and it is compelled to cause harm when the benefits of doing so outweigh the costs." As stated in the book's introduction, the book is intended for the layperson. I found the author's exposition clear, and the examples he used to back his arguments compelling.

Despite the fact that the book discusses a dry topic the book has attracted popularity. This may be due to the documentary based on the book, but in my opinion can be ultimately attributed to the author's idea of giving a face to the abstract entities that are corporations. In a chapter the author pointedly asks a renowned psychologist (Robert Hare) to diagnose the characteristics of the corporation as if a person. The psychologist likened the corporation to a psychopath (The passage I quoted in the preceding paragraph should be read in this vein).

Shocking the amoral characteristics of corporations the author exposes may be, the critique against them is hardly new. The core-periphery theory in social sciences placed the