This manual is a summarized version of a standard book about basic finance. It covers in 10 chapters all the topics of Corporate Finance avoiding unnecessary explanations about minor or ancillary themes; hence the objective of the manual is to be an abridged version of any lengthy introductory textbook. As large corporations deal with a large umbrella of financial issues, the manual is focused on large firms listed in stock exchanges or electronic platforms. It describes all their activities directly related to financial markets, institutions, and instruments, as essential supports for commercial, production, and investment activities. The manual provides a sort of a nautical chart through which financial decisions of a business enterprise can be analyzed with the intention to reach a good business decision.
Corporations try to create value for the stakeholders and specially for the owners or shareholders, hence, the focus is on valuation of projects that generate wealth. Notwithstanding, any valuation analysis of a project must consider all the operating costs and the financial costs, and this last feature depends on the investors. And if we do not consider taxes, the returns for the investors represent the costs of the corporation, therefore, the analysis must incorporate them fully. There is a list of questions and problems at the end of each chapter. At the end of the book the reader can find a loose answered interpretation to the questions and the solution to the problems.
In summary, the approach will be direct, concise, practical, and up to date. Direct, because we will try to ignore issues that, although they are key in their generality, are marginal to our course. Concise, in the sense of eliminating excessive descriptions and comments. Practical, in the sense of a hands-on approach to solve problems. Updated, for the inclusion of the latest practices, standards, and situations of an environment in which the CFO and his / her team faces.
