Contents

Here’s a quick rundown of what you’ll find inside Breaking the Financial Ice:

  • Chapter 1 We begin at the beginning: learn how to read a company’s main financial statements: balance sheet and income statement. And because business is all about the future, we will learn how to estimate future cash flows.

  • Chapter 2 Time is money. And the value of money changes over time. Here we look at typical real-life decisions involving investment and borrowing over time. Should I invest in education to get a better paying job? Should I borrow money to buy property?

  • Chapter 3 Businesses become successful by making shrewd investments. But how do you know which projects to invest in and which ones to run from? We also look at typical mistakes to avoid in estimating profitability and risk.

  • Chapter 4 The counterpart to profit is risk. But how do we measure risk and what can we do about it? Learn about the risk in stock market securities and how combining stocks in portfolios can reduce that risk.

  • Chapter 5 You need to have money to make money. Here we look at the cost of capital, i.e. the cost of financing a business and how borrowing influences this cost.

  • Chapter 6 How much is a business worth? This chapter covers company valuation, with some technical aspects being set aside for very keen readers in Chapter 6 ¾.

  • Chapter 7 takes a look at stock markets, why we need them and how they work. Is there such a thing as market efficiency? What about the human factor in decision-making ?

  • Chapter 8 Many new businesses don’t survive their first year. Here we look at financial strategies for short-term business survival: cash management and risk management.

  • Chapter 9 Conclusion and a few friendly words of advice.

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