Table of contents for Financial management : principles and applications / Arthur J. Keown ... [et al.].


Bibliographic record and links to related information available from the Library of Congress catalog. Note: Contents data are machine generated based on pre-publication information provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding.


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CONTENTs
Preface 00
Part 1: The Scope and Environment of Financial Management
chapter 1
An Introduction to Financial Management??00
What Is Finance???00
Goal of the Firm??00
Legal Forms of Business Organization??00
Ten Principles that Form the Basics of Financial Management??00
Principle 1: The Risk-Return Trade-off?We Won?t Take on Additional Risk Unless We Expect to Be Compensated 
with Additional Return??00
Principle 2: The Time Value of Money?A Dollar Received Today Is Worth More Than a Dollar Received in the 
Future??00
Principle 3: Cash?Not Profits?Is King??00
Principle 4: Incremental Cash Flows?It?s Only What Changes That Counts??00
Principle 5:The Curse of Competitive Markets?Why It?s Hard to Find Exceptionally Profitable Projects??00
Principle 6: Efficient Capital Markets?The Markets Are Quick and the Prices Are Right??00
Principle 7: The Agency Problems?Manager?s Won?t Work for Owners Unless It?s in Their Best Interest??00
Principle 8: Taxes Bias Business Decisions??00
Principle 9: All Risk Is Not Equal?Some Risk Can Be Diversified Away, and Some Cannot??00
Principle 10: Ethical Behavior Is Doing the Right Thing, and Ethical Dilemmas AreEverywhere in Finance??00
Overview of the Text??00
Finance and the Multinational Firm: The New Role??
How Financial Managers Use This Material 
Summary?00
chapter 2
Understanding Financial Statements, Taxes, and Cash Flows 
The Income Statement: Measuring a Company?s Profits 
The Balance Sheet: Measuring a Firm?s Book Value 
Computing a Company?s Taxes 
Measuring Free Cash Flows 
Financial Statements and International Finance 
How Financial Managers Use the Information from Financial Statements
Summary
chapter 3
Evaluating a Firm?s Financial Performance 
Financial Ratio Analysis 
The DuPont Analysis: An Integrative Approach to Ratio Analysis
Summary
chapter 4
Financial Forecasting, Planning, and Budgeting 
Financial Forecasting 
Limitations of the Percent of Sales Forecast Method 
The Sustainable Rate of Growth 
Financial Planning and Budgeting 
How Financial Managers Use This Material 
Summary
Part 2: Valuation of financial assets
chapter 5
The Time Value of Money 
Compound Interest and Future Value 
Compound Interest with Nonannual Periods 
Annuities?A Level Stream 
Annuities Due 
Present Value of Complex Stream 
Perpetuities and Infinite Annuities 
Making Interest Rates Comparable 
The Multinational Firm: The Time Value of Money 
Summary
chapter 6
Risk and Rates of Return 
Rates of Return in the Financial Markets 
The Relationship Between Risk and Rates of Return 
The Effects of Inflation on Rates of Return and the Fisher Effect 
The Term ?Structure of Interest Rates?
Expected Return 
Risk 
Risk and Diversification 
Measuring Market Risk 
Measuring a Portfolio?s Beta 
The Investor?s Required Rate of Return
Summary
chapter 7
Valuation and Characteristics of Bonds 
Types of Bonds 
Terminology and Characteristics of Bonds 
Definitions of Value 
Determinants of Value 
Valuation: The Basic Process 
Bond Valuation 
The Bondholder?s Expected Rate of Return (Yield to Maturity) 
Bond Valuation: Five Important Relationships 
How Financial Managers Use This Material 
Summary
chapter 8
Stock Valuation 
Features and Types of Preferred Stock 
Valuing Preferred Stock 
Characteristics of Common Stock 
Valuing Common Stock 
Stockholder?s Expected Rate of Return 
How Financial Managers Use This Material
Summary
Part 3: Investment in long-term assets
chapter 9
Finding Profitable Projects 
Payback Period 
Net Present Value 
Profitability Index (Benefit/Cost Ratio) 
Internal Rate of Return 
Ethics in Capital Budgeting 
A Glance at Actual Capital-Budgeting Practices 
The Multinational Firm: Capital Budgeting 
How Financial Managers Use This Material 
Summary
chapter 10
Cash Flows and Other Topics in Capital Budgeting 
Guidelines for Capital Budgeting 
An Overview of the Calculations of a Project?s Free Cash Flows 
Complications in Capital Budgeting: Capital Rationing and Mutually Exclusive Projects 
How Financial Managers Use This Material 
The Multinational Firm: The International Complications in Calculating Expected Free Cash Flows
Summary
chapter 11
Capital Budgeting and Risk Analysis 
Risk and the Investment Decision 
Methods for Incorporating Risk into Capital Budgeting 
Other Approaches to Evaluating Risk in Capital Budgeting 
How Financial Managers Use This Material 
The Multinational Firm: Capital Budgeting and Risk
Summary
chapter 12
Cost of Capital 
The Cost of Capital: Key Definitions and Concepts
Determining Individual Costs of Capital
The Weighted Average Cost of Capital 
Cost of Capital in Practice: Briggs & Stratton
Calculating Divisional Costs of Capital: PepsiCo, Inc. 
Using a Firm?s Cost of Capital to Evaluate New Capital Investments
How Financial Managers Use This Material
Summary 
chapter 13
Managing for Shareholder Value 
Who Are the Top Creators of Shareholder Value? 
Business Valuation?The Key to Creating Shareholder Value 
Value Drivers 
Economic Value Added (EVA) 
Paying for Performance 
Linking Incentive Compensation to Performance
How Financial Managers Use This Material 
Summary
Part 4: Capital structure and dividend policy
chapter 14
Raising Capital in the Financial Markets 
The Financial Manager, Internal and External Funds, and Flexibility 
The Mix of Corporate Securities Sold in the Capital Market 
Why Financial Markets Exist 
Financing of Business: The Movement of Funds Through the Economy 
Components of the U.S. Financial Market System 
The Investment Banker 
More on Private Placements: The Debt Side 
Flotation Costs 
How Financial Managers Use This Material 
Summary
chapter 15
Analysis and Impact of Leverage 
Business and Financial Risk 
Break-Even Analysis 
Operating Leverage 
Financial Leverage 
Combination of Operating and Financial Leverage 
The Multinational Firm: Business Risk and Global Sales 
How Financial Managers Use This Material 
Summary
chapter 16
Planning the Firm?s Financing Mix 
Key Terms and Getting Started 
A Glance at Capital Structure Theory 
Basic Tools of Capital Structure Management 
The Multinational Firm: Beware of Currency Risk 
How Financial Managers use this Material 
Summary
chapter 17
Dividend Policy and Internal Financing 
Dividend Payment Versus Profit Retention 
Does Dividend Policy Affect Stock Price?4 
The Dividend Decision in Practice 
Dividend Payment Procedures 
Stock Dividends and Stock Splits 
Stock Repurchases 
The Multinational Firm: The Case of Low Dividend Payments?So Where Do We Invest? 
How Financial Managers Use this Material 
Summary
Part 5: Working-Capital management and special topics in finance
chapter 18
Working-Capital Management and Short-Term Financing 
Managing Current Assets and Liabilities 
Working-Capital Management and the Risk-Return Trade-Off 
Advantages of Current Liabilities: The Return 
Appropriate level of Working Capital 
Hedging Principles 
Calculate a Firm?s Cash Conversion Cycle and Interpret Its Component Parts
Estimation of the Cost of Short-Term Credit 
Sources of Short-Term Credit 
Summary
chapter 19
Cash and Marketable Securities Management 
What are Liquid Assets? 
Why a Company Holds Cash 
Cash-Management Objectives and Decisions 
Collection and Disbursement Procedures 
Composition of Marketable Securities Portfolio 
The Multinational Firm: The Use of Cash and Marketable Securities 
How Financial Managers Use this Material
Summary
chapter 20
Accounts Receivable and Inventory Management 
Accounts Receivable Management 
Inventory Management 
TQM and Inventory-Purchasing Management: The New Supplier Relationships 
How Financial Managers use this Material 
Summary
chapter 21
Risk Management 
Futures 
Options 
Currency Swaps 
The Multination Firm and Risk Management 
How Financial Managers Use This Material 
Summary
chapter 22
International Business Finance 
The Globalization of Product and Financial Markets 
Exchange Rates 
Interest-Rate Parity Theory 
Purchasing Power Parity 
Exposure to Exchange Rate Risk 
Multinational Working-Capital Management 
International Financing and Capital-Structure Decisions 
Direct Foreign Investment 
How Financial Managers use this Material 
Summary
chapter 23
Corporate Restructuring: Combinations and Divestitures 
Why Mergers Might Create Wealth 
Determination of a Firm?s Value 
Divestitures 
How Financial Managers Use this Material 
Summary
chapter 24
Term Loans and Leases 
Term Loans 
Leases 
How Financial Managers use this Material
Summary
Appendixes 000
Glossary 000
Indexes 000




Library of Congress Subject Headings for this publication: Business enterprises Finance, Corporations Finance