Chapter 1: Overview of Financial Management

This chapter introduces the fundamental concepts of financial management, including

the role of financial management in organizations, the goals of financial management,
and the role of financial markets and institutions.
Chapter 2: Risk and Return Part I
This chapter explores the concepts of risk and return in finance, including the
measurement of risk and return, the relationship between risk and return, and the
impact of risk and return on investment decisions.
Chapter 3: Risk and Return Part II
Building on the previous chapter, this section further examines risk and return concepts,
including the capital asset pricing model (CAPM), systematic and unsystematic risk, and
portfolio risk management through diversification.
Chapter 4: Bond Valuation
This chapter focuses on the valuation of bonds, covering topics such as coupon bonds,
zero coupon bonds, yield to maturity, and the impact of interest rate changes on bond
valuation.
Chapter 5: Basic Stock Valuation
The valuation of common stock and the use of dividends in stock valuation are
discussed in this chapter. It covers dividend discount models, the Gordon Growth
Model, and other methods of stock valuation.
Chapter 6: Financial Options
This chapter introduces financial options and their role in financial management. It
covers option valuation and pricing models, such as the Black-Scholes model, and the
application of options in investment and risk management.
Chapter 7: Accounting for Financial Management
The role of accounting in financial management decision-making is explored in this
chapter. It covers financial statement analysis, accounting principles, and their
implications for financial reporting.
Chapter 8: Analysis of Financial Statements
 This chapter focuses on the analysis of financial statements, including ratio analysis,
common-size financial statements, trend analysis, and the limitations and challenges in
financial statement analysis.
Chapter 9: Financial Planning and Forecasting Financial Statements
This chapter likely covers the process of financial planning and forecasting, including
the development of pro forma financial statements, budgeting, and the use of financial
forecasts in decision-making.
Chapter 10: Determining Cost of Capital
The determination of a company's cost of capital is likely the focus of this chapter,
covering topics such as the cost of debt, cost of equity, and weighted average cost of
capital (WACC).
Chapter 11: Corporate Value and Value-Based Measurements
This chapter may explore corporate valuation methods and value-based performance
measures, such as economic value added (EVA) and market value added (MVA).
Chapter 12: Capital Budgeting Decision Criteria
The chapter on capital budgeting decision criteria is likely to discuss various methods
for evaluating and selecting capital budgeting projects, including net present value
(NPV), internal rate of return (IRR), and payback period.
Chapter 13: Capital Budgeting: Estimated Cash Flow and Analyzing Risk
This chapter may cover the estimation of cash flows for capital budgeting projects and
the analysis of risk factors that impact capital budgeting decisions.
Chapter 14: Real Options
The concept of real options, which involves applying option pricing methods to capital
budgeting decisions, is likely to be the focus of this chapter.
Chapter 15: Capital Structure Decisions: Part I
This chapter may cover the factors influencing a company's capital structure decisions,
including the trade-off between debt and equity financing.
Chapter 16: Capital Structure Decisions: Part II
Continuing from the previous chapter, this section may delve deeper into capital
structure decisions, potentially covering topics such as the cost of financial distress and
the impact of leverage on a firm's risk and return.
Chapter 17: Distribution to Shareholders: Dividends and Repurchases
This chapter may explore the various methods of distributing earnings to shareholders,
including dividends and share repurchases, and the implications of these decisions on a
company's value and capital structure.
Chapter 18: Initial Public Offering, Investment Banking, and Financial
Restructuring
This chapter likely covers the process of initial public offerings (IPOs), the role of
investment banking in the IPO process, and the financial restructuring of companies,
including mergers and acquisitions.
Chapter 19: Lease Financing
The focus of this chapter may be on lease financing, including the types of leases, lease
versus buy decisions, and the financial implications of leasing for both lessees and
lessors.
Chapter 20: Hybrid Financing, Preferred Stock, Warrants and convertibles
This chapter may cover hybrid financing instruments, such as preferred stock and
warrants, and their role in a company's capital structure and financing decisions.
Chapter 21: Working Capital Management
The management of a company's short-term assets and liabilities, such as cash,
inventory, and accounts receivable, is likely to be the focus of this chapter.
Chapter 22: Providing and Obtaining Credit
This chapter may explore the process of providing credit to customers and obtaining
credit from suppliers, as well as the management of trade credit and credit policies.
Chapter 23: Other Topics in Working Capital Management
Continuing from the previous chapter, this section may delve deeper into working
capital management, potentially covering topics such as cash management, inventory
control, and short-term financing options.
Chapter 24: Derivatives and Risk Management
This chapter may cover the use of derivatives, such as futures, options, and swaps, for
risk management purposes, including hedging against interest rate, currency, and
commodity price risks.
Chapter 25: Bankruptcy, Reorganization, and Liquidation
The process of bankruptcy, corporate reorganization, and liquidation of assets may be
the focus of this chapter, including the legal and financial implications of these
processes.
Chapter 26: Mergers, LBOs, Divestitures, and Holding Companies
This chapter may cover the financial aspects of mergers and acquisitions, leveraged
buyouts (LBOs), divestitures, and the formation and management of holding
companies.
Chapter 27: Multinational Financial Management
The focus of this chapter may be on the financial management of multinational
corporations, including foreign exchange risk management, international capital
budgeting, and global financing strategies.
Chapter 28: Time Value of Money
This chapter likely covers the concept of the time value of money, including the
principles of present value, future value, and the application of time value of money in
various financial decisions.
Chapter 29: Basic Financial Tools
A Review This chapter may provide a review of fundamental financial tools and
concepts, such as financial statement analysis, ratio analysis, and the time value of
money, to reinforce the foundational knowledge required for financial management.
Chapter 30: Pension Plan Management
The focus of this chapter may be on the management of pension plans, including the
funding, investment, and administration of defined benefit and defined contribution
pension plans.
Chapter 31: Financial Management in Not-for-Profit Businesses
This chapter may cover the unique financial management considerations for not-for-
profit organizations, including budgeting, fundraising, cost control, and financial
reporting in the context of non-profit operations.

Strength and weakness of chapter

Chapter 1 provides a solid foundation in fundamental financial management concepts

but may lack depth for some readers. Chapter 2 introduces risk and return, laying a
theoretical foundation, but potential complexity may challenge comprehension. Chapter
3 builds on advanced risk and return concepts with practical application but may still be
challenging for some readers.
Chapters 4 and 5 delve into bond and stock valuation, respectively. Chapter 4 offers in-
depth coverage with practical relevance but may be technically complex. Chapter 5
covers fundamental stock valuation concepts with practical examples but lacks
advanced content.
Chapter 6 specializes in financial options, providing insights and practical examples, but
technical complexity may be a barrier. Chapter 7 integrates accounting and finance,
offering practical applications but may risk redundancy for those familiar with basic
accounting.
Chapters 8 and 9 focus on financial statement analysis and planning, offering practical
relevance but potentially complex techniques. Chapter 10 addresses the cost of capital
with practical examples but may be technically challenging.
Chapter 15 explores capital structure decisions comprehensively but may be complex
for some readers. Chapters 11 and 12 cover firm valuation and capital budgeting,
respectively, with a focus on fundamentals and practical applications.
Chapters 13 and 14 address cash flow estimation, risk analysis, and real options,
providing insights but potentially challenging technical aspects. Chapter 16 continues
capital structure analysis, potentially with some redundancy.
Chapter 17 covers shareholder distribution strategies with practical application, but
there might be a lack of depth. Chapter 18 explores IPOs, investment banking, and
financial restructuring comprehensively but may be complex.
Chapters 19 and 20 on lease financing and hybrid financing offer insights with practical
examples but may lack advanced content. Chapters 21 and 22 focus on short-term
finance and credit management with practical applications but might lack depth.
Chapter 23 provides comprehensive coverage of working capital management, but
some readers may find it lacking in advanced techniques. Chapter 24 on derivatives and
risk management offers specialized insights but may be technically complex.
Chapter 25 covers bankruptcy, reorganization, and liquidation comprehensively with
practical application but may be emotionally challenging. Chapter 26 explores corporate
restructuring but may lack depth for some readers.
Chapter 27 on multinational financial management provides a global perspective with
practical relevance but may be complex. Chapter 28 covers the time value of money,
offering a fundamental concept with practical application.
Chapter 29 reviews basic financial tools comprehensively, serving as a refresher but
may lack advanced content. Chapter 30 focuses on pension plan management with
practical relevance but might have limited applicability.
Chapter 31 addresses financial management in not-for-profit businesses with a unique
perspective and practical insights but may have a niche audience.

BOOK SUMMARY

Intermediate Financial Management by Eugene F. Brigham and Phillip R. Daves is a

comprehensive textbook that covers a wide range of topics related to corporate finance.
The book is designed for students and professionals who have a basic understanding of
financial concepts and are looking to develop their knowledge and skills in intermediate
financial management. The book is divided into six parts, each covering a specific area
of corporate finance. These include financial analysis and planning, valuation and
capital budgeting, risk and return, capital structure and dividend policy, working capital
management, and special topics in finance. The authors use a practical approach to
explain complex financial concepts, with numerous examples, case studies, and end-of-
chapter problems to help readers apply their knowledge to real-world situations. The
book also includes a range of online resources, including Excel spreadsheets,
PowerPoint presentations, and test banks. Overall, Intermediate Financial Management
is a valuable resource for anyone looking to develop their understanding of corporate
finance and enhance their ability to make effective financial decisions.