| Part I | |
Introduction to Financial Management |
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| Chapter 1 | |
An Overview of Financial Management
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| | | Striking the Right Balance
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| | | Putting Things in Perspective
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| | | Career Opportunities in Finance
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| | | Financial Management in the New Millennium
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| | | Global Perspectives Coke Rides the Global Economy Wave
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| | | Technology Matters eToys Takes on Toys R Us
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| | | The Financial Staff's Responsibilities
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| | | Alternative Forms of Business Organization
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| | | Finance in the Organizational Structure of the Firm
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| | | The Goals of the Corporation
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| | | Industry Practice Levi Strauss Tries to Blend Profits with Social Activism
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| | | Business Ethics
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| | | Agency Relationships
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| | | Industry Practice Are CEOs Overpaid?
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| | | Managerial Actions to Maximize Shareholder Wealth
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| | | Does it Make Sense to Try to Maximize Earnings Per Share?
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| | | Organization of the Book
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 2 | |
Financial Statements, Cash Flow, and Taxes |
| | | Doing Your Homework with Financial Statements
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| | | Putting Things in Perspective
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| | | A Brief History of Accounting and Financial Statements
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| | | Financial Statements and Reports
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| | | The Balance Sheet
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| | | The Income Statement
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| | | Statement of Retained Earnings
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| | | Technology Matters Financial Analysis on the Internet
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| | | Industry Practice Analysts Are Increasingly Relying on Cash Flow to Value Stocks
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| | | Net Cash Flow
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| | | Industry Practice In Valuing Stocks, Is It Earnings or Cash Flow That Matters?
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| | | Statement of Cash Flows
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| | | Modifying Accounting Data for Managerial Decisions
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| | | MVA and EVA
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| | | Industry Practice Many Firms Adopt EVA in an Attempt to Enhance Shareholder Wealth
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| | | The Federal Income Tax System
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| | | Global Perspectives Tax Havens
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| | | Depreciation
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 3 | |
Analysis of Financial Statements
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| | | The Gap Warns Wall Street
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| | | Putting Things in Perspective
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| | | Ratio Analysis
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| | | Liquidity Ratios
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| | | Asset Management Ratios
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| | | Debt Management Ratios
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| | | Profitability Ratios
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| | | Global Perspectives International Accounting Differences Create Headaches for Investors
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| | | Market Value Ratios
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| | | Technology Matters eBay's Financial Statements
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| | | Trend Analysis
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| | | Tying the Ratios Together: The Du Pont Chart and Equation
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| | | Comparative Ratios and "Benchmarking"
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| | | Uses and Limitations of Ratio Analysis
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| | | Problems with ROE
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| | | Industry Practice Calculating EVA
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| | | Looking Beyond the Numbers
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| | | Small Business Financial Analysis in the Small Firm
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 4 | |
Financial Planning and Forecasting
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| | | Forecasting Disney's Future
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| | | Putting Things in Perspective
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| | | Strategic Plans
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| | | Operating Plans
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| | | The Financial Plan
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| | | Computerized Financial Planning Models
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| | | Sales Forecasts
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| | | Financial Statement Forecasting: The Percent of Sales Method
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| | | The AFN Formula
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| | | Forecasting Financial Requirements When the Balance Sheet Ratios Are Subject to Change
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| | | Other Techniques for Forecasting Financial Statements
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 5 | |
The Financial Environment: Markets, Institutions,
and Interest Rates
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| | | Charles Schwab and Merrill Lynch Compete in a Changing Environment
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| | | Putting Things in Perspective
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| | | The Financial Markets
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| | | Financial Institutions
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| | | The Stock Market
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| | | Technology Matters Online Trading Systems
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| | | Industry Practice A Very Expensive Beer
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| | | The Cost of Money
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| | | Industry Practice Measuring the Market
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| | | Interest Rate Levels
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| | | The Determinants of Market Interest Rates
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| | | Industry Practice A New, Almost Riskless Treasury Bond
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| | | The Term Structure of Interest Rates
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| | | What Determines the Shape of the Yield Curve?
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| | | Using the Yield Curve to Estimate Future Interest Rates
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| | | Investing Overseas
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| | | Global Perspectives Measuring Country Risk
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| | | Other Factors That Influence Interest Rate Levels
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| | | Interest Rates and Business Decisions
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| | | Tying It All Together |
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| | | Back to Top |
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| Part II | |
Fundamental Concepts in Financial Management |
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| Chapter 6 | |
Risk and Rates of Return
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| | | No Pain No Gain
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| | | Putting Things in Perspective
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| | | Investment Returns
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| | | Stand-Alone Risk
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| | | Industry Practice The Trade-Off between Risk and Return
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| | | Risk in a Portfolio Context
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| | | Global Perspectives The Benefits of Diversifying Overseas
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| | | Industry Practice Is the Dow Jones Heading to 36,000?
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| | | The Relationship Between Risk and Rates of Return
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| | | Industry Practice Estimating the Market Risk Premium
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| | | Physical Assets versus Securities
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| | | Some Concerns about Beta and the CAPM
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| | | Volatility versus Risk
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| | | Tying It All Together |
| | | Appendix 6A Calculating Beta Coefficients |
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| | | Back to Top |
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| Chapter 7 | |
Time Value of Money
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| | | Will You Be Able to Retire?
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| | | Putting Things in Perspective
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| | | Time Lines
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| | | Future Value
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| | | Industry Practice The Power of Compound Interest
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| | | Present Value
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| | | Solving for Interest Rate and Time
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| | | Future Value of an Annuity
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| | | Present Value of an Annuity
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| | | Perpetuities
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| | | Uneven Cash Flow Streams
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| | | Semiannual and Other Compounding Periods
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| | | Technology Matters Using the Internet for Personal Financial Planning
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| | | Comparison of Different Types of Interest Rates
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| | | Fractional Time Periods
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| | | Amortized Loans
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| | | Tying It All Together |
| | | Appendix 7A Continuous Compounding and Discounting |
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| | | Back to Top |
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| Part III | |
Financial Assets |
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| Chapter 8 | |
Bonds and Their Valuation
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| | | Ford's Bond Issue Sets a New Record
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| | | Putting Things in Perspective
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| | | Who Issues Bonds?
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| | | Key Characteristics of Bonds
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| | | Bond Valuation
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| | | Bond Yields
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| | | Global Perspectives Drinking Your Coupons
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| | | Bonds with Semiannual Coupons
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| | | Assessing the Riskiness of a Bond
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| | | Technology Matters S&P Develops Criteria to Determine Bond Ratings for Internet Firms
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| | | Industry Practice Santa Fe Bonds Finally Mature after 114 Years
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| | | Bond Markets
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| | | Tying It All Together
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| | | Appendix 8A Zero Coupon Bonds
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| | | Appendix 8B Bankruptcy and Reorganization |
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| | | Back to Top |
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| Chapter 9 | |
Stocks and Their Valuation
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| | | AOL Takes Investors on an Exciting Roller Coaster Ride
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| | | Putting Things in Perspective
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| | | Legal Rights and Privileges of Common Stockholders
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| | | Types of Common Stock
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| | | The Market for Common Stock
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| | | Industry Practice Martha Bodyslams WWF
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| | | Common Stock Valuation
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| | | Constant Growth Stocks
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| | | Expected Rate of Return on a Constant Growth Stock
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| | | Industry Practice Other Approaches to Valuing Common Stocks
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| | | Valuing Stocks That Have a Nonconstant Growth Rate
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| | | Valuing the Entire Corporation
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| | | Industry Practice Evaluating Stocks That Don't Pay Dividends
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| | | Stock Market Equilibrium
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| | | Technology Matters A Nation of Traders
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| | | Actual Stock Prices and Returns
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| | | Global Perspectives Investing in Emerging Markets
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| | | Preferred Stock
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| | | Tying It All Together |
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| | | Back to Top |
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| Part IV | |
Investing in Long-Term Assets: Capital Budgeting |
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| Chapter 10 | |
The Cost of Capital
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| | | Creating Value at GE
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| | | Putting Things in Perspective
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| | | The Logic of the Weighted Average Cost of Capital
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| | | Basic Definitions
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| | | Cost of Debt, kd(1 - T)
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| | | Cost of Preferred Stock, kp
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| | | Industry Practice Funny-Named Preferred-Like Securities
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| | | Cost of Retained Earnings, ks
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| | | Cost of New Common Stock, ke
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| | | Technology Matters Trends in Technology: Estimating the Cost of Capital for Internet Companies
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| | | Industry Practice How Much Does It Cost to Raise External Capital?
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| | | Composite, or Weighted Average, Cost of Capital, WACC
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| | | Industry Practice WACC Estimates for Some Large U.S. Corporations
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| | | Factors that Affect the Composite Cost of Capital
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| | | Global Perspectives Global Variations in the Cost of Capital
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| | | Adjusting the Cost of Capital for Risk
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| | | Estimating Project Risk
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| | | Using the CAPM to Estimate the Risk-Adjusted Cost of Capital
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| | | Techniques for Measuring Beta Risk
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| | | Some Problem Areas in Cost of Capital
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| | | Small Business The Cost of Equity Capital for Small Firms
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 11 | |
The Basics of Capital Budgeting
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| | | Boeing Recovers from Its Financial Tailspin
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| | | Putting Things in Perspective
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| | | Importance of Capital Budgeting
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| | | Generating Ideas for Capital Projects
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| | | Project Classifications
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| | | Similarities between Capital Budgeting and Security Valuation
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| | | Capital Budgeting Decision Rules
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| | | Modified Internal Rate of Return (MIRR)
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| | | Conclusions on Capital Budgeting Methods
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| | | Business Practices
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| | | Industry Practice Techniques Firms Use to Evaluate Corporate Projects
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| | | The Post-Audit
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| | | Small Business Capital Budgeting in the Small Firm
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| | | Using Capital Budgeting Techniques in Other Contexts
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 12 | |
Cash Flow Estimation and Risk Analysis
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| | | Home Depot Keeps Growing
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| | | Putting Things in Perspective
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| | | Estimating Cash Flows
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| | | Identifying the Relevant Cash Flows
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| | | Evaluating Capital Budgeting Projects
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| | | Introduction to Project Risk Analysis
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| | | Techniques for Measuring Stand-Alone Risk
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| | | Global Perspectives Capital Budgeting Practices in the Asia/Pacific Region
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| | | Technology Matters High-Tech CFOs
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| | | Project Risk Conclusions
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| | | Incorporating Project Risk and Capital Structure into Capital Budgeting
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| | | Incorporating Real Options into the Capital Budgeting Decision
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| | | The Optimal Capital Budget
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| | | Tying It All Together
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| | | Appendix 12A Depreciation |
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| | | Back to Top |
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| Part V | |
Capital Structure and Dividend Policy |
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| Chapter 13 | |
Capital Structure and Leverage
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| | | Debt: Rocket Booster or Anchor?
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| | | Putting Things in Perspective
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| | | The Target Capital Structure
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| | | Business and Financial Risk
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| | | Determining the Optimal Capital Structure
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| | | Industry Practice Yogi Berra on the M&M Proposition
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| | | Capital Structure Theory
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| | | Checklist for Capital Structure Decisions
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| | | Variations in Capital Structures
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| | | Global Perspectives Taking a Look at Global Capital Structures
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 14 | |
Distributions to Shareholders: Dividends and Share
Repurchases
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| | | FPL Stuns the Market by Changing Its Dividend Policy
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| | | Putting Things in Perspective
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| | | Dividends versus Capital Gains: What Do Investors Prefer?
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| | | Global Perspectives Dividend Yields around the World
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| | | Other Dividend Policy Issues
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| | | Dividend Stability
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| | | Establishing the Dividend Policy in Practice
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| | | Dividend Reinvestment Plans
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| | | Summary of Factors Influencing Dividend Policy
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| | | Overview of the Dividend Policy Decision
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| | | Stock Dividends and Stock Splits
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| | | Technology Matters Looking Online for Information on Dividends, Stock Splits, and Stock Repurchases
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| | | Stock Repurchases
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| | | Industry Practice Buybacks Have Lowered Dividend Yields
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| | | Industry Practice Stock Repurchases: An Easy Way to Boost Stock Prices?
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| | | Tying It All Together |
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| | | Back to Top |
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| Part VI | |
Working Capital Management and Multinational Financial
Management |
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| Chapter 15 | |
Working Capital Management
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| | | Dell Revolutionizes Working Capital Management
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| | | Putting Things in Perspective
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| | | Working Capital Terminology
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| | | The Cash Conversion Cycle
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| | | Alternative Current Asset Investment Policies
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| | | Industry Practice Free Cash Flow, EVA, and Working Capital
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| | | Cash Management
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| | | The Cash Budget
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| | | Industry Practice The Great Debate: How Much Cash is Enough?
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| | | Marketable Securities
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| | | Inventory
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| | | Inventory Costs
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| | | Industry Practice Supply Chain Management
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| | | Receivables Management
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| | | Credit Policy
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| | | Financing Current Assets
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| | | Alternative Current Asset Financing Policies
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| | | Advantages and Disadvantages for Short-Term Financing
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| | | Sources of Short-Term Financing
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| | | Accruals
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| | | Accounts Payable (Trade Credit)
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| | | Technology Matters The Internet Threatens to Transform the Banking Industry
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| | | Short-Term Bank Loans
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| | | Commercial Paper
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| | | Use of Security in Short-Term Financing
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| | | Tying It All Together |
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| | | Back to Top |
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| Chapter 16 | |
Multinational Financial Management
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| | | U.S. Firms Look Overseas to Enhance Shareholder Value
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| | | Putting Things in Perspective
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| | | Multinational, or Global, Corporations
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| | | Multinational versus Domestic Financial Management
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| | | Global Perspectives The Euro: What You Need to Know
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| | | Exchange Rates
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| | | The International Monetary System
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| | | Trading in Foreign Exchange
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| | | Interest Rate Parity
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| | | Purchasing Power Parity
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| | | Global Perspectives Hungry for a Big Mac? Go to Malaysia!
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| | | Inflation, Interest Rates, and Exchange Rates
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| | | International Money and Capital Markets
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| | | Industry Practice Stock Market Indices around the World
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| | | Multinational Capital Budgeting
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| | | International Capital Structures
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| | | Multinational Working Capital Management
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| | | Tying It All Together |
