1、每日免费获取报告1、每日微信群内分享 5+最新重磅报告；2、每日分享当日 华尔街日报 、金融时报；3、每周分享 经济学人4、每月汇总 500+份当月重磅报告（增值服务）扫一扫二维码关注公号回复 ： 研究报告加入“起点财经”微信群。Copyright 2 0 1 8 , 2 0 1 2 by Reuben Advani. All rights reserved. Printed in the United S tatesof America. Ex cept as permitted under the United S tates Copyright Act of 1 9 7 6 , no p
2、art ofthis publication may be reproduced or distributed in any form or by any means, or stored in adatabase or retrieval system, without the prior written permission of the publisher.1 2 3 4 5 6 7 8 9 QFR 2 3 2 2 2 1 2 0 1 9 1 8IS BN 9 7 8 -1 -2 6 0 -1 3 5 5 9 -6MHID 1 -2 6 0 -1 3 5 5 9 -4e-IS BN 9
3、7 8 -1 -2 6 0 -1 3 5 6 0 -2e-MHID 1 -2 6 0 -1 3 5 6 0 -8This publication is designed to provide accurate and authoritative information in regard tothe subject matter covered. It is sold with the understanding that neither the author nor thepublisher is engaged in rendering legal, accounting, securit
4、ies trading, or other professionalservice. If legal advice or other ex pert assistance is required, the services of a competentprofessional person should be sought. From a Declaration of Principles Jointly Adopted by a Committee of the AmericanBar Association and a Committee of Publishers and Associ
5、ationsLibrary of Congress Cataloging-in-Publication DataNames: Advani, Reuben, author.Title: The Wall S treet MBA : your personal crash course in corporate finance / ReubenAdvani.Description: Third edition. | New York : McGraw-Hill, 2 0 1 9 | Includes index .Identifiers: LCCN 2 0 1 8 0 1 1 1 9 3 | I
6、S BN 9 7 8 1 2 6 0 1 3 5 5 9 6 (alk. paper) | IS BN 1 2 6 0 1 3 5 5 9 4S ubjects: LCS H: Business enterprises-Finance. | Corporations-Finance. | Accounting. |Wall S treet (New York, N.Y.)-Anecdotes.Classification: LCC HG4 0 2 6 .A3 4 5 2 0 1 9 | DDC 6 5 8 .1 5 -dc2 3 LC record available athttps:/lcc
7、n.loc.gov/2 0 1 8 0 1 1 1 9 3McGraw-Hill Education products are available at special quantity discounts to use aspremiums and sales promotions or for use in corporate training programs. To contact arepresentative, please visit the Contact Us pages at .To Emily, my favorite student and professorCONTE
8、NTSACKNOWLEDGMENTSINTRODUCTIONPART 1ACCOUNTINGCHAPTER 1 ACCOUNTING BAS ICSCHAPTER 2 BALANCE S HEETCHAPTER 3 INCOME S TATEMENTCHAPTER 4 CAS H FLOW S TATEMENTCHAPTER 5 FRAUD ANDMANIPULATIONCHAPTER 6 FINANCIAL ANALYS ISCHAPTER 7 MANAGERIALACCOUNTINGPART 2FINANCECHAPTER 8 COS T OF CAPITALCHAPTER 9 VALUA
9、TIONCHAPTER 1 0 WALL S TREET BAS ICS :S TOCKS AND BONDSCHAPTER 1 1 WALL S TREET PARTDEUX: ARBITRAGE, DERIVATIVES ,AND HEDGE FUNDSCHAPTER 1 2 MERGERS ANDACQUIS ITIONSCHAPTER 1 3 CURRENCYCHAPTER 1 4 REAL ES TATECHAPTER 1 5 COMMODITIESCHAPTER 1 6 PORTFOLIO THEORYCHAPTER 1 7 THE BUS INES S OFFINANCECONC
10、LUS IONAPPENDIX A CAS E S TUDY: CAR-E-OKI, INC.APPENDIX B S AMPLE PROBLEMSAPPENDIX C S UMMARY FORMULASGLOS S ARYRECOMMENDEDREADINGSINDEXACKNOWLEDGMENTSA book like this cannot be written without the help of many people.I want to thank my mom, Dolly Advani, who has instilled in me thediscipline and dr
11、ive to take on any task, and my sister, RamonaAdvani, who constantly offers her talents to those in need (which quiteoften is me). My deepest thanks to Ellis Rubinstein, TC Westcott, andWendy S chneider who have taught me that financial efficiency canincrease social impact. I want to thank Noah S ch
12、wartzberg atMcGraw-Hill for his efforts to bring a third edition of this book tofruition and his immensely helpful suggestions. I owe a great deal ofgratitude to Colin Kelley at McGraw-Hill, who originally helped turnmy book idea into a reality.Throughout my career, a number of individuals have offe
13、red meguidance, and I truly believe I would not be where I am today withouttheir help. Robert Borghese and Fred Lipman have been tremendousmentors to me and are always willing to offer valuable advicewhenever needed. I truly appreciate their help. I want to thank RakeshJain and S ajjad Jaffer, my br
14、others in finance and always great sourcesof advice. A special thanks is owed to my friends and walkingcompendiums of all business knowledge, Maziar Akram, VineetBudhraja, and Vikram S odhi. Two individuals helped me find my wayto Wall S treet many years ago, Adam and Richard Pechter, and I owea ver
15、y heartfelt thanks to them for helping start my career. I would liketo ex tend an important thanks to Gary Podorowsky and Nick Henny,who helped me learn the corporate side of corporate finance.I would also like to thank my friends S hom Chowdhury andNimitt Mankad for their strong support of this boo
16、k. Thanks is due tomy friend Dr. Ravi Goel for showing me just how important finance isto even nonfinancial types. My deepest gratitude is offered to TomerRothschild and Matthew Zaklad for their global perspectives.I also want to thank my friends Brian Buck, Mike S iegel, OriolS unyer, and Ignacio D
17、elgado, who help keep me sane during hectictimes. A special thanks is owed to Karen Czerniakowski, ChrisCzerniakowski, Amanda Reichert, Nora and Estelle who keep mesmiling and well fed. Finally, thank you to Emily, Leena, and Leilawho provide me with constant support while keeping me on my toes.INTR
18、ODUCTIONS ince the publication of this books first edition, much has happenedin the world of global finance. Corporate scandals, overvalued mergers,a global financial crisis, a financial recovery, market volatility . . . andmany more developments that can make your head spin! The ups anddowns of the
19、 global markets create costs that are borne by the investorand consumer public. Misguidance by investment analysts, bankers,accountants, and corporate managers can compound problems andundermine our trust in the institutions that they serve. It has neverbeen more important for each of us to have a b
20、asic understanding ofcorporate finance and corporate accounting. This book was inspired bythe tumult created by the financial world.But here is the bigger problem: finance and accounting areboring! I remember spending long hours in front of dry tex tbookswhile trying to make sense of charts and grap
21、hs, let alone the esotericvernacular. I have a confession to make: after two years at one of thetop finance MBA programs, several years on Wall S treet, and teachingpositions at several respected universities, I still cant tell you what mostof those words and symbols mean. And this is coming from so
22、meonewho has made a good living ex ploiting those concepts. A lesson that Idid learn, however, is that certain MBA themesif understood withinthe contex t of real-world business challengescan be ex tremelyuseful.S everal years ago, I thought to myself, why not put together abook that covers these con
23、cepts in a clear, succinct, user-friendly, andentertaining format? With this in mind, I have written this book,which is intended to offer a breakdown of the major concepts coveredin a standard MBA finance and accounting program. My objective is tooffer a user-friendly, interactive, and fun approach
24、to facilitateunderstanding and learning. The book draws more on real-lifeex amples and less on theory: it is part tex tbook, part storybook.I have yet to find an accounting or finance course that is infusedwith any degree of passion. Likewise, I have yet to find a student ofthese studies who has ach
25、ieved any level of inspiration through them.But who says we cant try? If you can grasp the concepts covered inthis book, you will be able to navigate the world of corporateaccounting and finance with a heightened sense of confidence. And, Ihope, you will never again have to blindly accept the opinio
26、ns of theso-called ex perts.PART 1ACCOUNTING1ACCOUNTING BAS ICSQ: Whats the definition of an accountant?A: S omeone who solves a problem you didntknow you had in a way you dont understand.Normally, the mere mention of accounting is enough to send mostpeople into deep REM sleep, and for good reason.
27、Accounting isboring. But as with a lot of other boring things in life, we still do it.Driving to work and getting our teeth cleaned are boring, but we dothem because we know that each serves as a means to an end.S imilarly, we learn accounting to assist us in tackling a number ofbusiness and persona
28、l challenges. A clear understanding of accounting,along with the ability to apply the concepts, will lead to better decisionmaking in our business activities. From picking stocks to calculatingones net worth, these concepts are useful. Plus, if we can apply themcorrectly to real-life vignettes and c
29、ases, they will be less boring, morefun, and easier to read and digest.This chapter will discuss the following: Double entry accountingCash versus accrual accountingCreative accountingAccounting Principles and S tandardsTax versus book accountingIntroduction to financial statementsDOUBLE ENTRY ACCOU
30、NTINGIn accounting, a system called double entry accounting is used. Thissystem is similar in concept to something you might have studied inhigh school physics class. You may recall that for every action, there isan equal and opposite reaction. A similar principle applies inaccounting. The principle
31、 is this: money is transferred from a sourceaccount to a destination account. In other words, money is neithergained nor lost; it simply is transferred. When a transaction occurs onone side of the financial statements, one or more accompanyingtransactions occur elsewhere in the financial statements.
32、Here are a few ex amples:Ex ample 1 . A company purchases a product for later sale to itscustomers.Result: The balance sheet will reflect a decrease in cash and anincrease in inventory.Ex ample 2 . A company sells products to its customers and receivespayment by credit.Result: The balance sheet will
33、 reflect an increase in accountsreceivable and a decrease in inventory.Ex ample 3 . A company borrows money.Result: The balance sheet will reflect an increase in cash and anincrease in debt.Ex ample 4 . Finally, a company purchases a building with acombination of cash and a mortgage note.Result: The
34、 balance sheet will reveal an increase under fix ed assets(the purchase price of the building); a decrease of another asset,cash; and an increase on the liability side of the balance sheet, themortgage note.These concepts will become clear when the structure of the balancesheet is reviewed in more d
35、etail. For now, simply understand thatfinancial transactions involve a dynamic interplay of accounts thatcreates this balancing effect.CAS H VERS US ACCRUALACCOUNTINGIn financial reporting, there are two basic methodologies for reportingtransactions: the cash basis and the accrual basis.Cash Account
36、ingWith the cash basis, as the term implies, transactions are recorded whencash changes hands. S uppose you walk into the local hardware storeand purchase a hammer for $1 0 cash and take immediate possession ofit. Under the cash basis, the store owner would record this transactionas a $1 0 sale beca
37、use the cash was paid and the item was deliveredthetransaction was completed.Cash basis reporting is not generally accepted in business, but it isallowed for tax purposes in certain businesses that meet some or all ofthe following conditions (depending on the legal structure of thebusiness): The bus
38、iness does not sell products, meaning that it is service-basedand therefore has no inventory.The business keeps records for cash receipts and payments.The business has less than $5 million a year in sales.For the vast majority of businesses, however, the cash basis is notacceptable. Generally, only
39、small businesses with service-based salescan use cash basis reporting. Most other businesses use accrual basisreporting, including all publicly traded companies.Accrual AccountingWith the accrual basis of accounting, transactions are recorded as theyoccur. Cash does not necessarily have to change ha
40、nds, but atransaction must have occurred. S uppose that in a similar transactionyou go to the hardware store, purchase your hammer, and takepossession of the hammer. However, you pay the $1 0 with credit.Nonetheless, with accrual accounting, the transaction is recorded as asale by the store owner.Ac
41、crual basis reporting is used to capture the overall economicactivity of the firm. This is done because in finance and accounting,there is a fundamental notion that businesses are assessed not so muchon what they have on hand but rather on their ex pectations orpotential. In the universe of financia
42、l reporting, what you see is notalways what you get. With accrual accounting, the ex pectation is thatthe company will receive those payments at some point in the future,although the reality may entail entirely different outcomes. Morespecifically, companies book sales when goods are shipped, servic
43、es arerendered, or a long-term contract is signed.At this point, it is critical to understand the differences betweencash accounting and accrual accounting. S uppose ABC S oftwareannounces a $5 0 0 ,0 0 0 licensing agreement. Under that agreement,ABC will receive payments of $1 0 0 ,0 0 0 each year
44、for the nex t fiveyears. Using the accrual method, what would revenues reflect at theend of this year?If you answered $5 0 0 ,0 0 0 , you are absolutely correct, becauseunder the accrual method, ABC would book the full amountthecontract is signed and the services, in theory, are rendered. Thisassume
45、s that there is no follow-up servicing, and so the software isdelivered in its entirety. Using the cash method, how would this resultdiffer?If you answered that ABC would book $1 0 0 ,0 0 0 , you are correctonce again, because ABC would record only what was collected. Insum, ABC collected $1 0 0 ,0
46、0 0 , and that is what was recorded.CREATIVE ACCOUNTINGAs you can well imagine, accrual accounting creates manyopportunities for fraud and manipulation. The vague rules governingrevenue recognition, along with numerous intangible items, createex citing yet often misleading opportunities for “creativ
47、e accounting.”The best ex ample of this on an industrywide basis has to do withtelecommunications companies using network swaps in the late 1 9 9 0 sto inflate their revenues artificially. At that time, loose accountingstandards in a nascent industry opened the door to deceptive methodsof financial
48、disclosure. The end result of this practice, sadly, was notunlike many of the cases we cover in this book: billions of dollars ofhard-earned investor funds evaporated overnight.For years, large telecom companies were plagued by steadilydeclining margins in wholesale network bandwidth. At the same ti
49、me,they faced mounting pressure to reveal strong earnings to Wall S treetanalysts. To alleviate these problems, those companies began thepractice of swapping network bandwidth with other industry players,with both parties booking the sale. This was done by using what werecalled indefeasible rights of use contracts (IRUs), which are long-termcontracts for the use of bandwidth. By using these contracts, telecomcompanies would engage in a practice known as round-tripping, inwhich two companies
