Structural finance shifts the focus to long-term sustainability and big-ticket decisions. IESE Blog Network Investment Decisions
: Key topics include investment project analysis, debt and equity decisions, working capital management, and company valuation. IESE Blog Network Purchase Options finance for managers eduardo martinez abascal pdf work
| Mistake | Abascal’s Correction | | :--- | :--- | | | Use the Cash Flow Statement exclusively for solvency analysis. | | Using IRR for mutually exclusive projects | Always use NPV when comparing two different scales of investment. | | Ignoring Working Capital | Map the Operating Cycle (Days Inventory + Days Receivables - Days Payables). | | Using the Wrong Discount Rate | Match the discount rate (WACC) to the risk of the project, not the division. | | Treating sunk costs as relevant | Forget past expenses. Only future incremental cash flows matter. | | | Using IRR for mutually exclusive projects
The PDF workbook here is intense. Expect to discount cash flows with varying interest rates, handle perpetuities, and compare mutually exclusive projects. | | Treating sunk costs as relevant | Forget past expenses
"Finance for Managers" by Eduardo Martinez Abascal is a valuable resource for non-financial managers who need to understand financial concepts to make informed decisions. The book provides a comprehensive overview of financial topics, using real-world examples and cases to illustrate key concepts. While it may have some limitations, such as limited depth in certain areas, it is an excellent starting point for managers looking to improve their financial literacy.