Matthew Krantz - Investment Banking For Dummies

6 Part 4: Applying Investment Banking Chapter 15: Knowing the Rules The History of Regulation of Investment Banking The Ins and Outs of Modern Investment Banking Rules The Rules on Analysts Why Simply Making Rules Isn’t Enough Chapter 16: How Some Companies Lie, Cheat, and Steal Their Way to the Top Did You Really Sell That? When Companies Aggressively Report Revenue Lucy, You Got Some ’Splainin’ to Do: When Companies Understate Their Expenses Missed It by That Much: When Companies Overstate Their Financial Position Keeping Investors Off-Balance What Should an Investment Banker Do? Chapter 17: Understanding Alternative Investments and Asset Management Knowing Your Alternatives Digging Into Asset Management Managing Potential Conflicts with Clients Chapter 18: Trying Your Hand at Investment Banking with a Case Study Setting the Scene Considering the Options Creating the Analysis Structuring a Deal Success or Failure

7 Part 5: The Part of Tens Chapter 19: Ten of the Biggest Debacles in Investment Banking History The Dot-Com Boom and Bust Tainted Research Scandals Enron and the Accounting Scams The Mortgage Debacle and Collapse of Lehman The Flash Crash The London Whale at JPMorgan Chase and Barings Bank Long-Term Capital Management Bankruptcy in Jefferson County, Alabama IPO Allocations with CSFB Bad Mergers and Acquisitions Like AOL Time Warner Chapter 20: Ten Ways to Improve a Discounted Cash Flow Analysis Financial Analysis Isn’t Physics Show Your Sensitive Side Monte Carlo Isn’t Just for High Rollers What Can Go Wrong Will Go Wrong It’s Tough to Make Predictions, Especially about the Future The Investor of Today Doesn’t Profit from Yesterday’s Growth Garbage In, Garbage Out Rates Are Falling — It’s a Better Deal! Read Your Putt from Several Angles The Weighting Is the Hardest Part Chapter 21: Ten (Or So) of the Best Online Resources for Investment Bankers Bloomberg Reuters Standard & Poor’s Renaissance Capital and IPOScoop.com The Securities and Exchange Commission Moody’s MarketSmith Index Fund Advisors Morningstar Bureau of Labor Statistics Department of Commerce Federal Reserve Trefis

8 Appendix: Where Investment Banking Came From The Roots of Investment Banking Banking Catches On in the United States

9 Index

10 About the Authors

11 Advertisement Page

12 Connect with Dummies

13 End User License Agreement

1 Chapter 1 TABLE 1-1 Among the Last Banks Standing

2 Chapter 2 TABLE 2-1 Biggest U.S. Merger Offers of 2019 TABLE 2-2 Number of U.S. IPOs, 2014–2018

3 Chapter 3 TABLE 3-1 When Internet IPOs Ruled the Market

4 Chapter 7TABLE 7-1 Putting Hershey’s Balance Sheet into Perspective

5 Chapter 8TABLE 8-1 Debt-to-Equity Ratios by IndustryTABLE 8-2 Net Margin by IndustryTABLE 8-3 Calculating Hershey’s Return on CapitalTABLE 8-4 Hershey’s Growth Trends

6 Chapter 9TABLE 9-1 The 11 SectorsTABLE 9-2 Dell’s Revenue and Capital SpendingTABLE 9-3 Dell’s Revenue and Capital-Spending TrendsTABLE 9-4 Computer Hardware TrendsTABLE 9-5 The New Dell’s Revenue and Capital-Spending TrendsTABLE 9-6 Comparing Balance SheetsTABLE 9-7 Common Sizing Delta’s 2012 Income StatementTABLE 9-8 Common Sizing Delta’s RivalsTABLE 9-9 S&P 500’s P/E through TimeTABLE 9-10 Calculating EV/EBITDA for Hershey in 2018TABLE 9-11 Comparing EV/EBITDATABLE 9-12 Comparing Total Debt-to-Equity

7 Chapter 10TABLE 10-1 Where Stock Investors Get Return on S&P 500TABLE 10-2 Breaking Down Red Hat’s Buyout Ratios

8 Chapter 11TABLE 11-1 Statistics for Various Asset Classes Based on Annual Returns (1926–20...TABLE 11-2 The Duration of a 5 Percent Coupon, Ten-Year Bond with a Yield to Mat...

9 Chapter 12TABLE 12-1 Betas for Stocks as of October 25, 2019TABLE 12-2 Firm Value (in Billions) for Various WACCs and Growth Rates

10 Chapter 14TABLE 14-1 Return on Equity for Coca-ColaTABLE 14-2 Financial Statements for the Coca-Cola Company (in Millions of Dollar...TABLE 14-3 Financial Data for PepsiCo and Coca-Cola (in Millions of Dollars)TABLE 14-4 Three-Factor DuPont Analysis for PepsiCo and the Coca-Cola Company

11 Chapter 16TABLE 16-1 Assumed Rates of Return on Pension Plan AssetsTABLE 16-2 Discount Rates Used to Determine Pension Liabilities

12 Chapter 18TABLE 18-1 Income StatementsTABLE 18-2 Balance SheetsTABLE 18-3 Additional DataTABLE 18-4 Performance Ade’s Pro Forma Balance SheetTABLE 18-5 Performance Ade’s Pro Forma Income Statement

13 Chapter 19TABLE 19-1 Biggest First-Day PopsTABLE 19-2 Largest Publicly Traded Bankruptcy Filings

1 Chapter 3FIGURE 3-1: A page of a research report from CFRA.

2 Chapter 6FIGURE 6-1: The Company Filings link on the SEC home page. FIGURE 6-2: The EDGAR database listing shows you all the filings that are avail...FIGURE 6-3: GE’s 10-K filing contains a number of documents. FIGURE 6-4: Excel for Android and iOS allows you to import a table of data by t...

3 Chapter 11FIGURE 11-1: A typical U.S. Treasury yield curve.

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