CONTENTS

Preface Chapter 1: Chapter 2: Chapter 3: Chapter 4: Chapter 5: Chapter 6: Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11: Chapter 12: Chapter 13: Chapter 14: Chapter 15: Chapter 16 An Introduction to Financial Management

iv 1

Understanding Financial Statements, Taxes, and Cash Flows 9 Evaluating a Firms Financial Performance 30

Financial Forecasting, Planning, and Budgeting 61 The Time Value of Money Risk and rates of Return Valuation and Characteristics of Bonds Stock Valuation Capital Budgeting Decision Criteria 91 144 173 205 226

Cash Flows and Other Topics in Capital Budgeting 250 Capital Budgeting and Risk Analysis Cost of Capital Managing for Shareholder Value Rising Capital in the Financial Markets Analysis and Impact of Leverage Planning the Firms Financial Mix 290 306 331 344 354 392

Chapter 17 Chapter 18 Chapter 19: Chapter 20: Chapter 21: Chapter 22: Chapter 23: Chapter 24:

Dividend Policy and Internal Financing

422

Working-Capital Management and Short-Term Financing 444 Cash and Marketable Securities Management 470

Accounts Receivable and Inventory Management 496 Risk Management International Business Finance Corporate Restructuring: Combinations and Divestitures Term Loans and Leases 523 548 565 577