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Fundamentals of Financial Management 16th edition [Kietas viršelis]

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(University of Florida), (University of Florida)
  • Formatas: Hardback, 864 pages, aukštis x plotis x storis: 38x223x281 mm, weight: 2018 g
  • Išleidimo metai: 11-Feb-2021
  • Leidėjas: South-Western College Publishing
  • ISBN-10: 0357517571
  • ISBN-13: 9780357517574
Kitos knygos pagal šią temą:
Fundamentals of Financial Management 16th editionDidesnis paveikslėlis
  • Formatas: Hardback, 864 pages, aukštis x plotis x storis: 38x223x281 mm, weight: 2018 g
  • Išleidimo metai: 11-Feb-2021
  • Leidėjas: South-Western College Publishing
  • ISBN-10: 0357517571
  • ISBN-13: 9780357517574
Kitos knygos pagal šią temą:
Pastovi nuoroda: https://www.kriso.lt/db/9780357517574.html
Raktažodžiai:
Gain the understanding of today's financial markets and corporate financial management you need to propel you toward your goals with the contemporary insights and innovative learning tools found in Brigham/Houston's popular FUNDAMENTALS OF FINANCIAL MANAGEMENT, 16E. This longtime market leader offers intriguing insights into the social responsibility of business, the significant effects of recent changes in corporate tax code, the ongoing multiple effects related to the economic impact of the coronavirus pandemic and other emerging issues straight from today's headlines. Clear explanations and real, meaningful examples help you understand the "what" and the "why" of corporate budgeting, financing, working capital decision making, forecasting, valuation and Time Value of Money. Hands-on exercises, cases, Excel® spreadsheet models and interactive MindTap digital activities and learning modules guide you in putting the theory you learn into action.
Preface xxviii
About the Authors xxxix
PART 1 Introduction to Financial Management
1(62)
Chapter 1 An Overview of Financial Management
2(27)
Striking the Right Balance
2(2)
Putting Things In Perspective
4(1)
1-1 What is Finance?
4(2)
1-1A Areas of Finance
4(1)
1-1B Finance Within an Organization
5(1)
1-1C Finance Versus Economics and Accounting
5(1)
1-2 Jobs in Finance
6(1)
1-3 Forms of Business Organization
7(2)
1-4 The Main Financial Goal: Creating Value for Investors
9(4)
1-4A Determinants of Value
9(2)
1-4B Intrinsic Value
11(1)
1-4C Consequences of Having a Short-Run Focus
12(1)
1-5 Stockholder-Manager Conflicts
13(4)
1-5A Compensation Packages
13(1)
Are CEOs Overpaid?
14(1)
1-5B Direct Stockholder Intervention
14(2)
1-5C Managers' Response
16(1)
1-6 Stockholder-Debtholder Conflicts
17(1)
1-7 Balancing Shareholder Interests and the Interests of Society
18(3)
Investing In Socially Responsible Funds
19(2)
1-8 Business Ethics
21(4)
1-8A What Companies are Doing
22(1)
1-8B Consequences of Unethical Behavior
22(2)
1-8C How Should Employees Deal With Unethical Behavior?
24(1)
Tying It All Together
25(4)
Chapter 2 Financial Markets and Institutions
29(34)
The Economy Depends on a Strong Financial System
29(1)
Putting Things In Perspective
30(1)
2-1 The Capital Allocation Process
31(2)
2-2 Financial Markets
33(6)
2-2A Types of Markets
33(1)
2-2B Recent Trends
34(3)
Changing Technology Has Transformed Financial Markets
37(2)
2-3 Financial Institutions
39(8)
Lower Fees Motivate Investors to Move Toward Index Funds
42(4)
Securitization Has Dramatically Transformed the Banking Industry
46(1)
2-4 The Stock Market
47(3)
2-4A Physical Location Stock Exchanges
47(1)
Global Perspectives: The NYSE and NASDAQ Go Global
48(1)
2-4B Over-the-Counter (OTC) and the NASDAQ Stock Markets
49(1)
2-5 The Market for Common Stock
50(2)
2-5A Types of Stock Market Transactions
50(1)
Initial Buzz Surrounding IPOs Doesn't Always Translate Into Long-Lasting Success
51(1)
2-6 Stock Markets and Returns
52(4)
2-6A Stock Market Reporting
53(1)
2-6B Stock Market Returns
54(1)
Measuring the Market
55(1)
2-7 Stock Market Efficiency
56(4)
2-7A Behavioral Finance Theory
58(1)
2-7B Conclusions About Market Efficiency
59(1)
Tying It All Together
60(2)
Integrated Case Smyth Barry & Company
62(1)
PART 2 Fundamental Concepts in Financial Management
63(132)
Chapter 3 Financial Statements, Cash Flow, and Taxes
64(44)
Unlocking the Valuable Information in Financial Statements
64(1)
Putting Things In Perspective
65(1)
3-1 Financial Statements and Reports
66(1)
Global Perspectives: Global Accounting Standards: Will It Ever Happen?
67(1)
3-2 The Balance Sheet
67(8)
3-2A Allied's Balance Sheet
69(5)
A Quick Glance at the Aggregate Balance Sheets of Households and Nonprofits, 2000-2019
74(1)
3-3 The Income Statement
75(2)
3-4 Statement of Cash Flows
77(3)
3-5 Statement of Stockholders' Equity
80(1)
3-6 Uses and Limitations of Financial Statements
81(1)
3-7 Free Cash Flow
82(3)
Free Cash Flow Is Important for Businesses Both Small and Large
85(1)
3-8 MVA and EVA
85(2)
3-9 Income Taxes
87(9)
Congress Passes Sweeping Tax Reform Act in 2017
87(2)
3-9A Individual Taxes
89(3)
3-9B Corporate Taxes
92(1)
Corporate Tax Rates Around the World
92(4)
Tying It All Together
96(7)
Integrated Case D'Leon Inc., Part I
103(4)
Taking a Closer Look Exploring Dunkin' Brands Group's Financial Statements
107(1)
Chapter 4 Analysis of Financial Statements
108(43)
Can You Make Money Analyzing Stocks?
108(1)
Putting Things In Perspective
109(1)
4-1 Ratio Analysis
110(1)
4-2 Liquidity Ratios
111(3)
4-2A Current Ratio
111(1)
Financial Analysis on the Internet
112(1)
4-2B Quick, or Acid Test, Ratio
113(1)
4-3 Asset Management Ratios
114(3)
4-3A Inventory Turnover Ratio
114(1)
4-3B Days Sales Outstanding
115(1)
4-3C Fixed Assets Turnover Ratio
116(1)
4-3D Total Assets Turnover Ratio
116(1)
4-4 Debt Management Ratios
117(3)
4-4A Total Debt to Total Capital
119(1)
4-4B Times-Interest-Earned Ratio
119(1)
4-5 Profitability Ratios
120(3)
4-5A Operating Margin
120(1)
4-5B Profit Margin
121(1)
4-5C Return on Total Assets
121(1)
4-5D Return on Common Equity
122(1)
4-5E Return on Invested Capital
122(1)
4-5F Basic Earning Power (BEP) Ratio
123(1)
4-6 Market Value Ratios
123(3)
4-6A Price/Earnings Ratio
124(1)
4-6B Market/Book Ratio
124(1)
4-6C Enterprise Value/EBITDA Ratio
125(1)
4-7 Tying the Ratios Together: The DuPont Equation
126(2)
Microsoft Excel: A Truly Essential Tool
128(1)
4-8 Potential Misuses of ROE
128(2)
Economic Value Added (EVA) versus Net Income
129(1)
4-9 Using Financial Ratios to Assess Performance
130(4)
4-9A Comparison to Industry Average
131(1)
4-9B Benchmarking
132(1)
4-9C Trend Analysis
133(1)
4-10 Uses and Limitations of Ratios
134(2)
Looking for Warning Signs Within the Financial Statements
136(1)
4-11 Looking Beyond the Numbers
136(2)
Tying It All Together
138(9)
Integrated Case D'Leon Inc., Part II
147(3)
Taking a Closer Look Conducting A Financial Ratio Analysis on HP Inc.
150(1)
Web Appendix 4A: Common Size and Percent Change Analyses
Chapter 5 Time Value of Money
151(44)
Will You Be Able to Retire?
151(1)
Putting Things In Perspective
152(1)
5-1 Time Lines
153(1)
5-2 Future Values
154(6)
5-2A Step-By-Step Approach
154(1)
5-2B Formula Approach
155(1)
5-2C Financial Calculators
155(1)
Simple versus Compound Interest
155(1)
5-2D Spreadsheets
156(2)
Hints on Using Calculators
158(1)
5-2E Graphic View of the Compounding Process
158(2)
5-3 Present Values
160(3)
5-3A Graphic View of the Discounting Process
162(1)
5-4 Finding the Interest Rate, I
163(1)
5-5 Finding the Number of Years, N
164(1)
5-6 Annuities
164(1)
5-7 Future Value of an Ordinary Annuity
165(3)
5-8 Future Value of an Annuity Due
168(1)
5-9 Present Value of an Ordinary Annuity
169(2)
5-10 Finding Annuity Payments, Periods, and Interest Rates
171(3)
5-10A Finding Annuity Payments, PMT
171(1)
5-10B Finding the Number of Periods, N
172(1)
5-10C Finding the Interest Rate, I
173(1)
5-11 Perpetuities
174(1)
5-12 Uneven Cash Flows
174(2)
5-13 Future Value of an Uneven Cash Flow Stream
176(1)
5-14 Solving for I with Uneven Cash Flows
177(1)
5-15 Semiannual and Other Compounding Periods
178(2)
5-16 Comparing Interest Rates
180(3)
5-17 Fractional Time Periods
183(1)
5-18 Amortized Loans
183(2)
Tying It All Together
185(8)
Integrated Case First National Bank
193(2)
Web Appendix 5A: Continuous Compounding and Discounting
Web Appendix 5B: Growing Annuities
PART 3 Financial Assets
195(164)
Chapter 6 Interest Rates
196(35)
Interest Rates Fall to Historic Lows
196(1)
Putting Things In Perspective
197(1)
6-1 The Cost of Money
198(1)
6-2 Interest Rate Levels
199(4)
6-3 The Determinants of Market Interest Rates
203(6)
6-3A The Real Risk-Free Rate of Interest, r*
203(1)
6-3B The Nominal, or Quoted, Risk-Free Rate of Interest, rRF = r* + IP
204(1)
6-3C Inflation Premium (IP)
204(1)
6-3D Default Risk Premium (DRP)
205(1)
6-3E Liquidity Premium (LP)
206(1)
6-3F Interest Rate Risk and the Maturity Risk Premium (MRP)
206(1)
An Almost Riskless Treasury Bond
207(2)
6-4 The Term Structure of Interest Rates
209(2)
6-5 What Determines the Shape of the Yield Curve?
211(4)
The Links between Expected Inflation and Interest Rates: A Closer Look
213(2)
6-6 Using the Yield Curve to Estimate Future Interest Rates
215(3)
6-7 Macroeconomic Factors That Influence Interest Rate Levels
218(4)
6-7A Federal Reserve Policy
218(1)
6-7B Federal Budget Deficits or Surpluses
219(1)
6-7C International Factors
219(1)
6-7D Business Activity
220(1)
Does An Inverted Yield Curve Signal That a Recession Is Coming?
221(1)
6-8 Interest Rates and Business Decisions
222(2)
Tying It All Together
224(5)
Integrated Case Morton Handley & Company
229(1)
Taking a Closer Look: Using The New York Times Bond Market Page and FINRA Bond Center Websites to Understand Interest Rates
230(1)
Chapter 7 Bonds and Their Valuation
231(42)
Sizing Up Risk in the Bond Market
231(1)
Putting Things In Perspective
232(1)
7-1 Who Issues Bonds?
233(1)
7-2 Key Characteristics of Bonds
234(3)
7-2A Par Value
234(1)
7-2B Coupon Interest Rate
234(1)
7-2C Maturity Date
235(1)
7-2D Call Provisions
235(1)
7-2E Sinking Funds
236(1)
7-2F Other Features
237(1)
7-3 Bond Valuation
237(4)
7-4 Bond Yields
241(4)
7-4A Yield to Maturity
242(1)
7-4B Yield to Call
243(2)
7-5 Changes in Bond Values over Time
245(3)
7-6 Bonds with Semiannual Coupons
248(2)
7-7 Assessing a Bond's Riskiness
250(5)
7-7A Price Risk
251(1)
7-7B Reinvestment Risk
252(1)
7-7C Comparing Price Risk and Reinvestment Risk
253(2)
7-8 Default Risk
255(7)
7-8A Various Types of Corporate Bonds
255(1)
7-8B Bond Ratings
256(5)
7-8C Bankruptcy and Reorganization
261(1)
7-9 Bond Markets
262(3)
Accrued Interest and the Pricing of Coupon Bonds
263(2)
Tying It All Together
265(6)
Integrated Case Western Money Management Inc.
271(1)
Taking a Closer Look: Using Online Resources to Understand the Impact of Interest Rates on Bond Valuation
272(1)
Web Appendix 7A: Zero Coupon Bonds
Web Appendix 7B: Bond Risk and Duration
Web Appendix 7C: Bankruptcy and Reorganization
Chapter 8 Risk and Rates of Return
273(46)
Managing Risk in Difficult Times
273(1)
Putting Things In Perspective
274(1)
8-1 The Risk-Return Trade-Off
275(2)
8-2 Stand-Alone Risk
277(9)
8-2A Statistical Measures of Stand-Alone Risk
278(2)
8-2B Measuring Stand-Alone Risk: the Standard Deviation
280(1)
8-2C Using Historical Data to Measure Risk
281(1)
8-2D Other Measures of Stand-Alone Risk: The Coefficient of Variation and The Sharpe Ratio
282(2)
8-2E Risk Aversion and Required Returns
284(1)
The Historical Trade-Off between Risk and Return
285(1)
8-3 Risk in a Portfolio Context: The CAPM
286(12)
8-3A Expected Portfolio Returns, i
287(1)
8-3B Portfolio Risk
288(4)
Adding More Stocks Doesn't Always Reduce the Risk of Your Portfolio
292(1)
8-3C Risk in a Portfolio Context: The Beta Coefficient
292(5)
Global Perspectives: The Benefits of Diversifying Overseas
297(1)
Recent Study Highlights the Importance of Diversification
298(1)
8-4 The Relationship between Risk and Rates of Return
298(8)
Estimating the Market Risk Premium
301(2)
8-4A The Impact of Expected Inflation
303(1)
8-4B Changes in Risk Aversion
304(1)
8-4C Changes in a Stock's Beta Coefficient
305(1)
8-5 Some Concerns about Beta and the CAPM
306(1)
8-6 Some Concluding Thoughts: Implications for Corporate Managers and Investors
307(1)
Tying It All Together
308(8)
Integrated Case Merrill Finch Inc.
316(2)
Taking a Closer Look: Using Past Information to Estimate Required Returns
318(1)
Web Appendix 8A: Calculating Beta Coefficients
Chapter 9 Stocks and Their Valuation
319(40)
Searching for the Right Stock
319(1)
Putting Things In Perspective
320(1)
9-1 Legal Rights and Privileges of Common Stockholders
320(3)
9-1A Control of the Firm
320(2)
9-1B The Preemptive Right
322(1)
Are "Smart Beta" Funds a Smart Idea?
323(1)
9-2 Types of Common Stock
323(1)
9-3 Stock Price versus Intrinsic Value
324(2)
9-3A Why Do Investors and Companies Care About Intrinsic Value?
325(1)
9-4 The Discounted Dividend Model
326(3)
9-4A Expected Dividends as the Basis for Stock Values
328(1)
9-5 Constant Growth Stocks
329(5)
9-5A Illustration of a Constant Growth Stock
330(1)
9-5B Dividends versus Growth
331(2)
9-5C Which is Better: Current Dividends or Growth?
333(1)
9-5D Required Conditions for the Constant Growth Model
333(1)
9-6 Valuing Nonconstant Growth Stocks
334(6)
The Coronavirus and the Stock Market
336(3)
Evaluating Stocks that Don't Pay Dividends
339(1)
9-7 Enterprise-Based Approach to Valuation
340(5)
9-7A The Corporate Valuation Model
340(3)
9-7B Comparing the Corporate Valuation and Discounted Dividend Models
343(1)
Other Approaches to Valuing Common Stocks
344(1)
9-8 Preferred Stock
345(1)
Tying It All Together
346(6)
Integrated Case Mutual of Chicago Insurance Company
352(1)
Taking a Closer Look: Estimating ExxonMobil Corporation's Intrinsic Stock Value
353(2)
Appendix 9A: Stock Market Equilibrium
355(4)
PART 4 Investing in Long-Term Assets: Capital Budgeting
359(118)
Chapter 10 The Cost of Capital
360(29)
Creating Value at Disney
360(1)
Putting Things In Perspective
361(1)
10-1 An Overview of the Weighted Average Cost of Capital (WACC)
362(1)
10-2 Basic Definitions
363(2)
10-3 Cost of Debt, rd(1-T)
365(1)
10-4 Cost of Preferred Stock, rp
366(1)
10-5 Cost of Retained Earnings, rs
367(5)
10-5A CAPM Approach
368(1)
10-5B Bond-Yield-Plus-Risk-Premium Approach
369(1)
10-5C Dividend-Yield-Plus-Growth-Rate, or Discounted Cash Flow (DCF), Approach
370(1)
10-5D Averaging the Alternative Estimates
371(1)
10-6 Cost of New Common Stock, re
372(3)
10-6A Add Flotation Costs to a Project's Cost
372(1)
10-6B Increase the Cost of Capital
373(1)
10-6C When Must External Equity Be Used?
374(1)
10-7 Composite, or Weighted Average, Cost of Capital, WACC
375(1)
10-8 Factors That Affect the WACC
375(2)
10-8A Factors the Firm Cannot Control
375(1)
Some Real-World Estimates of the WACC
376(1)
10-8B Factors the Firm Can Control
377(1)
10-9 Adjusting the Cost of Capital for Risk
377(2)
10-10 Some Other Problems with Cost of Capital Estimates
379(1)
Tying It All Together
380(6)
Integrated Case Coleman Technologies Inc.
386(1)
Taking a Closer Look: Calculating 3M's Cost of Capital
387(2)
Web Appendix 10A: The Cost of New Common Stock and WACC
Chapter 11 The Basics of Capital Budgeting
389(32)
Companies Struggle to Make Investments in the Face of Changing Technology and Market Conditions
389(1)
Putting Things In Perspective
390(1)
11-1 An Overview of Capital Budgeting
391(2)
11-2 Net Present Value (NPV)
393(3)
11-3 Internal Rate of Return (IRR)
396(3)
Why NPV Is Better than IRR
399(1)
11-4 Multiple Internal Rates of Return
399(2)
11-5 Reinvestment Rate Assumptions
401(1)
11-6 Modified Internal Rate of Return (MIRR)
402(4)
11-7 NPV Profiles
406(3)
11-8 Payback Period
409(2)
11-9 Conclusions on Capital Budgeting Methods
411(1)
11-10 Decision Criteria Used in Practice
412(1)
Tying It All Together
413(6)
Integrated Case Allied Components Company
419(2)
Chapter 12 Cash Flow Estimation and Risk Analysis
421(33)
Home Depot Carefully Evaluates New Investments
421(1)
Putting Things In Perspective
422(1)
12-1 Conceptual Issues in Cash Flow Estimation
423(4)
12-1A Free Cash Flow versus Accounting Income
423(1)
12-1B Timing of Cash Flows
424(1)
12-1C Incremental Cash Flows
424(1)
12-1D Replacement Projects
424(1)
12-1E Sunk Costs
425(1)
12-1F Opportunity Costs Associated with Assets the Firm Owns
425(1)
12-1G Externalities
426(1)
12-2 Analysis of an Expansion Project
427(4)
12-2A Effect of Different Depreciation Rates
430(1)
12-2B Cannibalization
430(1)
12-2C Opportunity Costs
430(1)
12-2D Sunk Costs
430(1)
12-2E Other Changes to the Inputs
430(1)
12-3 Replacement Analysis
431(2)
12-4 Risk Analysis in Capital Budgeting
433(1)
12-5 Measuring Stand-Alone Risk
434(5)
12-5A Sensitivity Analysis
435(1)
12-5B Scenario Analysis
436(2)
12-5C Monte Carlo Simulation
438(1)
12-6 Within-Firm and Beta Risk
439(1)
12-7 Unequal Project Lives
440(2)
12-7A Replacement Chains
440(1)
12-7B Equivalent Annual Annuities (EAA)
440(2)
12-7C Conclusions about Unequal Lives
442(1)
Tying It All Together
442(9)
Integrated Case Allied Food Products
451(3)
Web Appendix 12A: Tax Depreciation
Web Appendix 12B: Refunding Operations
Web Appendix 12C: Using the CAPM to Estimate the Risk-Adjusted Cost of Capital
Web Appendix 12D: Techniques for Measuring Beta Risk
Chapter 13 Real Options and Other Topics in Capital Budgeting
454(23)
Anheuser-Busch Used Real Options to Enhance Its Value
454(1)
Putting Things In Perspective
455(1)
13-1 Introduction to Real Options
455(1)
13-2 Growth (Expansion) Options
456(3)
13-3 Abandonment/Shutdown Options
459(2)
13-4 Investment Timing Options
461(2)
13-5 Flexibility Options
463(1)
13-6 The Optimal Capital Budget
464(4)
13-7 The Post-Audit
468(1)
Tying It All Together
469(5)
Integrated Case 21st Century Education Products
474(3)
PART 5 Capital Structure and Dividend Policy
477(80)
Chapter 14 Capital Structure and Leverage
478(43)
Debt: Rocket Booster or Anchor? Caterpillar Inc.
478(1)
Putting Things In Perspective
479(1)
14-1 Book, Market, or "Target" Weights?
479(4)
14-1A Measuring the Capital Structure
480(2)
14-1B Capital Structure Changes Over Time
482(1)
14-2 Business and Financial Risk
483(11)
14-2A Business Risk
483(2)
14-2B Factors That Affect Business Risk
485(1)
14-2C Operating Leverage
485(4)
14-2D Financial Risk
489(5)
14-3 Determining the Optimal Capital Structure
494(6)
14-3A WACC and Capital Structure Changes
494(1)
14-3B The Hamada Equation
495(3)
14-3C The Optimal Capital Structure
498(2)
Yogi Berra on the MM Proposition
500(1)
14-4 Capital Structure Theory
500(6)
14-4A The Effect of Taxes
501(1)
14-4B The Effect of Potential Bankruptcy
502(1)
14-4C Trade-off Theory
502(1)
14-4D Signaling Theory
503(1)
14-4E Using Debt Financing to Constrain Managers
504(1)
14-4F Pecking Order Hypothesis
505(1)
14-4G Windows of Opportunity
506(1)
14-5 Checklist for Capital Structure Decisions
506(3)
14-6 Variations in Capital Structures
509(1)
Tying It All Together
510(7)
Integrated Case Campus Deli Inc.
517(3)
Taking a Closer Look: Exploring the Capital Structures for Four Restaurant Companies
520(1)
Web Appendix 14A: Degree of Leverage
Chapter 15 Distributions to Shareholders: Dividends and Share Repurchases
521(36)
Apple Continues to Unload Part of Its Vast Cash Hoard
521(1)
Putting Things In Perspective
522(1)
15-1 Dividends versus Capital Gains: What Do Investors Prefer?
523(2)
15-1A Dividend Irrelevance Theory
523(1)
15-1B Reasons Some Investors Prefer Dividends
524(1)
15-1C Reasons Some Investors Prefer Capital Gains
524(1)
15-2 Other Dividend Policy Issues
525(2)
15-2A Information Content, or Signaling, Hypothesis
525(1)
15-2B Clientele Effect
526(1)
15-3 Establishing the Dividend Policy in Practice
527(11)
15-3A Setting the Target Payout Ratio: The Residual Dividend Model
527(2)
Coronavirus Concerns Spur Many Companies to Reduce or Suspend Their Dividends
529(4)
15-3B Earnings, Cash Flows, and Dividends
533(2)
Global Perspectives: Dividend Yields around the World
535(1)
15-3C Payment Procedures
536(2)
15-4 Dividend Reinvestment Plans
538(1)
15-5 Summary of Factors Influencing Dividend Policy
539(2)
15-5A Constraints
539(1)
15-5B Investment Opportunities
540(1)
15-5C Alternative Sources of Capital
540(1)
15-5D Effects of Dividend Policy on rs
541(1)
15-6 Stock Dividends and Stock Splits
541(2)
15-6A Stock Splits
541(1)
15-6B Stock Dividends
542(1)
15-6C Effect on Stock Prices
542(1)
15-7 Stock Repurchases
543(5)
15-7A The Effects of Stock Repurchases
544(2)
15-7B Advantages of Repurchases
546(1)
15-7C Disadvantages of Repurchases
546(1)
Stock Repurchases Come Under Attack
547(1)
15-7D Conclusions on Stock Repurchases
548(1)
Tying It All Together
548(6)
Integrated Case Southeastern Steel Company
554(1)
Taking a Closer Look: Apple's Dividend Policy
555(2)
Web Appendix 15A: The Residual Dividend Model: An Example
PART 6 Working Capital Management, Financial Forecasting, and Multinational Financial Management
557(106)
Chapter 16 Working Capital Management
558(40)
Successful Firms Efficiently Manage Their Working Capital
558(1)
Putting Things In Perspective
559(1)
16-1 Background on Working Capital
559(1)
16-2 Current Assets Investment Policies
560(2)
16-3 Current Assets Financing Policies
562(3)
16-3A Maturity Matching, or "Self-Liquidating," Approach
562(1)
16-3B Aggressive Approach
562(2)
16-3C Conservative Approach
564(1)
16-3D Choosing between The Approaches
564(1)
16-4 The Cash Conversion Cycle
565(5)
16-4A Calculating the Targeted CCC
565(1)
16-4B Calculating the CCC From Financial Statements
566(1)
Some Real-World Examples of the Cash Conversion Cycle
567(3)
16-5 The Cash Budget
570(3)
16-6 Cash and Marketable Securities
573(4)
16-6A Currency
574(1)
16-6B Demand Deposits
574(1)
16-6C Marketable Securities
575(2)
16-7 Inventories
577(1)
16-8 Accounts Receivable
578(3)
16-8A Credit Policy
578(1)
16-8B Setting And Implementing the Credit Policy
579(1)
16-8C Monitoring Accounts Receivable
580(1)
16-9 Accounts Payable (Trade Credit)
581(3)
A Difficult Balancing Act
583(1)
16-10 Bank Loans
584(4)
16-10A Promissory Note
584(1)
16-10B Line of Credit
585(1)
16-10C Revolving Credit Agreement
586(1)
16-10D Costs of Bank Loans
586(2)
16-11 Commercial Paper
588(1)
16-12 Accruals (Accrued Liabilities)
589(1)
16-13 Use of Security in Short-Term Financing
589(1)
Tying It All Together
590(5)
Integrated Case Ski Equipment Inc.
595(3)
Web Appendix 16A: Inventory Management
Web Appendix 16B: Short-Term Loans and Bank Financing
Chapter 17 Financial Planning and Forecasting
598(27)
Effective Forecasting Is an Important Component of Strong Performance
598(1)
Putting Things In Perspective
599(1)
17-1 Strategic Planning
600(2)
17-2 The Sales Forecast
602(1)
17-3 The AFN Equation
603(5)
17-3A Excess Capacity Adjustments
607(1)
17-4 Forecasted Financial Statements
608(5)
17-4A Part I. Inputs
608(3)
17-4B Part EL Forecasted Income Statement
611(1)
17-4C Part III. Forecasted Balance Sheet
611(1)
17-4D Part IV. Ratios and EPS
612(1)
17-4E Using the Forecast to Improve Operations
612(1)
17-5 Using Regression to Improve Forecasts
613(1)
17-6 Analyzing the Effects of Changing Ratios
614(1)
17-6A Modifying Accounts Receivable
614(1)
17-6B Modifying Inventories
615(1)
17-6C Other "Special Studies"
615(1)
Tying It All Together
615(6)
Integrated Case New World Chemicals Inc.
621(3)
Taking a Closer Look: Forecasting the Future Performance of Abercrombie & Fitch
624(1)
Web Appendix 17A: Forecasting Financial Requirements When Financial Ratios Change
Chapter 18 Multinational Financial Management
625(38)
U.S. Firms Look Overseas to Enhance Shareholder Value
625(1)
Putting Things In Perspective
626(1)
18-1 Multinational, or Global, Corporations
626(4)
President Trump Imposes New Tariffs
629(1)
18-2 Multinational versus Domestic Financial Management
630(2)
A New Era of Deglobalization?
632(1)
18-3 The International Monetary System
632(4)
18-3A International Monetary Terminology
633(1)
18-3B Current Monetary Arrangements
634(1)
Brexit Shakes Europe
635(1)
18-4 Foreign Exchange Rate Quotations
636(2)
18-4A Cross Rates
636(1)
18-4B Interbank Foreign Currency Quotations
637(1)
18-5 Trading in Foreign Exchange
638(2)
18-5A Spot Rates and Forward Rates
638(2)
18-6 Interest Rate Parity
640(2)
18-7 Purchasing Power Parity
642(4)
Hungry For a Big Mac? Go to South Africa
644(2)
18-8 Inflation, Interest Rates, and Exchange Rates
646(1)
18-9 International Money and Capital Markets
647(2)
18-9A International Credit Markets
647(1)
Stock Market Indexes around the World
648(1)
18-9B International Stock Markets
649(1)
18-10 Investing Overseas
649(3)
Global Perspectives: Measuring Country Risk
650(1)
Global Perspectives: Investing in International Stocks
650(2)
18-11 International Capital Budgeting
652(2)
18-12 International Capital Structures
654(2)
Tying It All Together
656(4)
Integrated Case Citrus Products Inc.
660(1)
Taking a Closer Look: Using the Internet to Follow Exchange Rates and International Indexes
661(2)
PART 7 Special Topics in Financial Management
663(1)
Chapter 19 Derivatives and Risk Management
664(1)
Using Derivatives to Manage Risk
664(1)
Putting Things In Perspective
665(1)
19-1 Reasons to Manage Risk
666(3)
CFOs Assess the Costs and Benefits of Risk Management
668(1)
19-2 Background on Derivatives
669(2)
19-3 Options
671(5)
19-3A Option Types and Markets
671(2)
19-3B Factors That Affect the Value of a Call Option
673(1)
19-3C Exercise Value versus Option Price
673(3)
19-4 Introduction to Option Pricing Models
676(3)
Expensing Executive Stock Options
679(1)
19-5 The Black-Scholes Option Pricing Model (OPM)
679(5)
19-5A OPM Assumptions and Equations
679(2)
19-5B OPM Illustration
681(1)
Using the VIX As a Measure of Investors' Fears
682(2)
19-6 Forward and Futures Contracts
684(4)
19-7 Other Types of Derivatives
688(3)
19-7A Swaps
688(1)
Credit Instruments Create New Opportunities and Risks
689(1)
19-7B Structured Notes
689(2)
19-7C Inverse Floaters
691(1)
19-8 Using Derivatives to Reduce Risks
691(4)
19-8A Security Price Exposure
691(1)
19-8B Futures
692(1)
19-8C Swaps
693(1)
19-8D Commodity Price Exposure
694(1)
19-8E The Use and Misuse of Derivatives
694(1)
19-9 Risk Management
695(1)
19-9 A An Approach to Risk Management
696(3)
PWC's Guide for Assessing and Managing Risk
697(2)
Tying It All Together
699(4)
Integrated Case Tropical Sweets Inc.
703(1)
Taking a Closer Look: Facebook, Inc.: Call and Put Option Pricing and Interest Rate Futures
704(2)
Appendix 19A: Valuation of Put Options
706(2)
Chapter 20 Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles
708(32)
Testa's Investors Love the Convertible
708(1)
Putting Things In Perspective
709(1)
20-1 Preferred Stock
709(4)
20-1A Basic Features
710(1)
Preferred Stock: Does It Make Sense for Individual Investors?
711(1)
20-1B Adjustable-Rate Preferred Stock
712(1)
20-1C Advantages and Disadvantages of Preferred Stock
712(1)
20-2 Leasing
713(6)
20-2A Financial Statement Effects
713(1)
New Lease Guidance: ASC 842
714(1)
20-2B Evaluation By the Lessee
715(3)
20-2C Other Factors That Affect Leasing Decisions
718(1)
20-3 Warrants
719(4)
20-3A Initial Market Price of a Bond with Warrants
720(1)
20-3B Use of Warrants in Financing
721(1)
20-3C The Component Cost of Bonds with Warrants
722(1)
20-3D Problems with Warrant Issues
722(1)
20-4 Convertibles
723(6)
20-4A Conversion Ratio and Conversion Price
724(1)
20-4B The Component Cost of Convertibles
725(3)
20-4C Use of Convertibles in Financing
728(1)
20-4D Convertibles Can Reduce Agency Costs
729(1)
20-5 A Final Comparison of Warrants and Convertibles
729(1)
20-6 Reporting Earnings When Warrants or Convertibles Are Outstanding
730(1)
Tying It All Together
731(5)
Integrated Case Fish & Chips Inc., Part I
736(1)
Integrated Case Fish & Chips Inc., Part II
737(1)
Taking a Closer Look: Using the Internet to Follow Hybrid Securities
738(2)
Chapter 21 Mergers and Acquisitions
740(1)
Disney Expands Its Media Empire
740(1)
Putting Things In Perspective
741(1)
21-1 Rationale for Mergers
742(2)
21-1A Synergy
742(1)
21-1B Tax Considerations
742(1)
21-1C Purchase of Assets Below Their Replacement Cost
743(1)
21-1D Diversification
743(1)
21-1E Managers' Personal Incentives
743(1)
21-1F Breakup Value
744(1)
21-2 Types of Mergers
744(1)
21-3 Level of Merger Activity
744(2)
21-4 Hostile versus Friendly Takeovers
746(2)
21-5 Merger Analysis
748(7)
21-5A Valuing the Target Firm
748(3)
21-5B Setting the Bid Price
751(2)
More Than Just Financial Statements
753(1)
21-5C Post-Merger Control
754(1)
21-6 The Role of Investment Bankers
755(2)
21-6A Arranging Mergers
755(1)
21-6B Developing Defensive Tactics
756(1)
21-6C Establishing a Fair Value
756(1)
21-6D Financing Mergers
757(1)
21-6E Arbitrage Operations
757(1)
21-7 Do Mergers Create Value? The Empirical Evidence
757(2)
The Track Record of Large Mergers
759(1)
21-8 Corporate Alliances
759(1)
21-9 Private Equity Investments
760(1)
21-10 Divestitures
760(3)
21-10A Types of Divestitures
761(1)
21-10B Divestiture Illustrations
761(2)
Tying It All Together
763(3)
Integrated Case Smitty's Home Repair Company
766
Web Appendix 21A: Merger Regulation
Web Appendix 21B: Holding Companies
APPENDIXES
Appendix A Solutions to Self-Test Questions and Problems
1(1)
Appendix B Answers to Selected End-of-Chapter Problems
1(1)
Appendix C Selected Equations and Tables
1(1)
Index 1
Dr. Eugene F. Brigham is a graduate research professor emeritus at the University of Florida, where he has taught since 1971. He received his M.B.A. and Ph.D. from the University of California-Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin and the University of California-Los Angeles. A former president of the Financial Management Association, he has written many journal articles on the cost of capital, capital structure and other aspects of financial management. He has authored or co-authored 10 textbooks on managerial finance and managerial economics that are used at more than 1,000 universities in the United States and have been translated into 11 languages worldwide. In addition to his academic writing, Dr. Brigham continues to teach, consult and complete research. He has served as a consultant to many corporations and government agencies, including the Federal Reserve Board, the Federal Home Loan Bank Board, the U.S. Office of Telecommunications Policy and the RAND Corp. He has also testified as an expert witness in numerous electric, gas and telephone rate cases at both federal and state levels. Dr. Brigham spends his spare time on the golf course, enjoying time with his family and dogs and tackling outdoor adventure activities such as biking through Alaska. Dr. Joel F. Houston is the Eugene F. Brigham Professor of Finance at the University of Florida. He received his M.A. and Ph.D. from the Wharton School at the University of Pennsylvania and his undergraduate degree from Franklin and Marshall College. Prior to his appointment at the University of Florida, Dr. Houston was an economist at the Federal Reserve Bank of Philadelphia. Dr. Houston's research is primarily in the areas of corporate finance and financial institutions. His work has been published in top journals, including The Journal of Finance, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Accounting Research and Financial Management. Dr. Houston also currently serves as an associate editor for the Journal of Financial Services Research and the Journal of Financial Economic Policy. Since arriving at the University of Florida in 1987, Dr. Houston has received more than 25 teaching awards and has been actively involved in both undergraduate and graduate education. In addition to co-authoring leading textbooks in financial management, Dr. Houston has participated in management education programs for the PURC/World Bank Program, Southern Company, Exelon Corporation and Volume Services America. He enjoys playing golf and spending time with his wife, two children and three grandchildren. He is an avid sports fan who follows the Florida Gators as well as the Pittsburgh Steelers, Pirates and Penguins.