SOLUTIONS MANUAL

FINANCIAL MANAGEMENT
PRINCIPLES AND APPLICATIONS
VOLUME II

2012 Edition

MA. ELENITA BALATBAT CABRERA

BBA, MBA, CPA, CMA

Table of Contents
Unit VII
Chapter

Unit VIII
Chapter

Unit IX
Chapter

Unit X
Chapter

Assets Risks Concept and Pricing

21

FINANCIAL RISK MANAGEMENT

21-1 21-5

22

ESTIMATING RISK AND RETURN ON ASSETS

22-1 22-12

23

CAPITAL ASSET PRICING MODEL AND MODERN

PORTFOLIO THEORY

23-1 23-11

Capital Structure Issues

24

ASSESSING LONG-TERM DEBT, EQUITY AND CAPITAL

STRUCTURE

24-1 24-9

25

SOURCES OF LONG-TERM FINANCING

25-1 25-10

26

SHARING FIRM WEALTH: DIVIDENDS, SHARE

REPURCHASES AND OTHER PAYOUTS

26-1 26-20

Long-term Investment Decisions

27

CALCULATING THE COST OF CAPITAL

27-1 27-4

28

BASICS OF CAPITAL BUDGETING

28-1 28-6

29

SCREENING AND SELECTING CAPITAL INVESTMENT

PROPOSALS

29-1 29-10

Other Contemporary Issues in Finance

30

MERGERS AND ACQUISITIONS; DIVESTITURES

301-1 30-3

31

INTERNATIONAL ASPECTS OF CORPORATE FINANCE

31-1 31-7