Book Description
Parrino, Kidwell & Bates, Fundamentals of Corporate Finance 2^{nd} Edition is a balanced approach to the main theme of value creation balanced by risk management. The goal of this text is to provide both intuitive and calculation based to master content. Material is organized from the most concrete to the most abstract provided with regular opportunities to review, practice, and selftest.
This issue emphasizes building intuitive abilities to solve problems that occur in the business world. Once principles and concepts are understood, the goal is to have a knowledgebased intuitive understanding of financial projects and situations. In addition, the book addresses demands for intellectual and mathematical rigor and includes features showing the relevance of finance to other business disciplines. Realworld examples offer repeated opportunities to develop problemsolving skills through steppedout Learn By Doing Applications that present realistic business situations. Decision Making Examples are based on actual business scenarios and emphasize the decision making process of the financial manager.
Table of Contents
 Cover Page
 Title Page
 Copyright
 Dedication
 ABOUT THE AUTHORS
 Preface
 Organization and Coverage
 Proven Pedagogical Framework
 New to This Edition
 Instructor and Student Resources
 Brief Contents
 Contents

1: The Financial Manager and the Firm
 1.1 THE ROLE OF THE FINANCIAL MANAGER
 1.2 FORMS OF BUSINESS ORGANIZATION
 1.3 MANAGING THE FINANCIAL FUNCTION
 1.4 THE GOAL OF THE FIRM
 1.5 AGENCY CONFLICTS: SEPARATION OF OWNERSHIP AND CONTROL
 1.6 THE IMPORTANCE OF ETHICS IN BUSINESS
 SUMMARY OF Learning Objectives
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

2: The Financial System and the Level of Interest Rates
 2.1 THE FINANCIAL SYSTEM
 2.2 DIRECT FINANCING
 2.3 TYPES OF FINANCIAL MARKETS
 2.4 MARKET EFFICIENCY
 2.5 FINANCIAL INSTITUTIONS AND INDIRECT FINANCING
 2.6 THE DETERMINANTS OF INTEREST RATE LEVELS
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

3: Financial Statements, Cash Flows, and Taxes
 3.1 FINANCIAL STATEMENTS AND ACCOUNTING PRINCIPLES
 3.2 THE BALANCE SHEET
 3.3 MARKET VALUE VERSUS BOOK VALUE
 3.4 THE INCOME STATEMENT AND THE STATEMENT OF RETAINED EARNINGS
 3.5 THE STATEMENT OF CASH FLOWS
 3.6 TYING THE FINANCIAL STATEMENTS TOGETHER
 3.7 CASH FLOWS TO INVESTORS
 3.8 FEDERAL INCOME TAX
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

4: Analyzing Financial Statements
 4.1 BACKGROUND FOR FINANCIAL STATEMENT ANALYSIS
 4.2 COMMONSIZE FINANCIAL STATEMENTS
 4.3 FINANCIAL RATIOS AND FIRM PERFORMANCE
 4.4 THE DUPONT SYSTEM: A DIAGNOSTIC TOOL
 4.5 SELECTING A BENCHMARK
 4.6 USING FINANCIAL RATIOS
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

5: The Time Value of Money
 5.1 THE TIME VALUE OF MONEY
 5.2 FUTURE VALUE AND COMPOUNDING
 5.3 PRESENT VALUE AND DISCOUNTING
 5.4 ADDITIONAL CONCEPTS AND APPLICATIONS
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

6: Discounted Cash Flows and Valuation
 6.1 MULTIPLE CASH FLOWS
 6.2 LEVEL CASH FLOWS: ANNUITIES AND PERPETUITIES
 6.3 CASH FLOWS THAT GROW AT A CONSTANT RATE
 6.4 THE EFFECTIVE ANNUAL INTEREST RATE
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 Appendix: Deriving the Formula for the Present Value of an Ordinary Annuity
 Problem

7: Risk and Return
 7.1 RISK AND RETURN
 7.2 QUANTITATIVE MEASURES OF RETURN
 7.3 THE VARIANCE AND STANDARD DEVIATION AS MEASURES OF RISK
 7.4 RISK AND DIVERSIFICATION
 7.5 SYSTEMATIC RISK
 7.6 COMPENSATION FOR BEARING SYSTEMATIC RISK
 7.7 THE CAPITAL ASSET PRICING MODEL
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 8: Bond Valuation and the Structure of Interest Rates

9: Stock Valuation
 9.1 THE MARKET FOR STOCKS
 9.2 COMMON STOCK VALUATION
 9.3 STOCK VALUATION: SOME SIMPLIFYING ASSUMPTIONS
 9.4 VALUING PREFERRED STOCK
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

10: The Fundamentals of Capital Budgeting
 10.1 AN INTRODUCTION TO CAPITAL BUDGETING
 10.2 NET PRESENT VALUE
 10.3 THE PAYBACK PERIOD
 10.4 THE ACCOUNTING RATE OF RETURN
 10.5 INTERNAL RATE OF RETURN
 10.6 CAPITAL BUDGETING IN PRACTICE
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

11: Cash Flows and Capital Budgeting
 11.1 CALCULATING PROJECT CASH FLOWS
 11.2 ESTIMATING CASH FLOWS IN PRACTICE
 11.3 FORECASTING FREE CASH FLOWS
 11.4 SPECIAL CASES (OPTIONAL)
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

12: Evaluating Project Economics and Capital Rationing
 12.1 VARIABLE COSTS, FIXED COSTS, AND PROJECT RISK
 12.2 CALCULATING OPERATING LEVERAGE
 12.3 BREAKEVEN ANALYSIS
 12.4 RISK ANALYSIS
 12.5 INVESTMENT DECISIONS WITH CAPITAL RATIONING
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 13: The Cost of Capital

14: Working Capital Management
 14.1 WORKING CAPITAL BASICS
 14.2 THE OPERATING AND CASH CONVERSION CYCLES
 14.3 WORKING CAPITAL MANAGEMENT STRATEGIES
 14.4 ACCOUNTS RECEIVABLE
 14.5 INVENTORY MANAGEMENT
 14.6 CASH MANAGEMENT AND BUDGETING
 14.7 FINANCING WORKING CAPITAL
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

15: How Firms Raise Capital
 15.1 BOOTSTRAPPING
 15.2 VENTURE CAPITAL
 15.3 INITIAL PUBLIC OFFERING
 15.4 IPO PRICING AND COST
 15.5 GENERAL CASH OFFER BY A PUBLIC COMPANY
 15.6 PRIVATE MARKETS AND BANK LOANS
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems

16: Capital Structure Policy
 16.1 CAPITAL STRUCTURE AND FIRM VALUE
 16.2 THE BENEFITS AND COSTS OF USING DEBT
 16.3 TWO THEORIES OF CAPITAL STRUCTURE
 16.4 PRACTICAL CONSIDERATIONS IN CHOOSING A CAPITAL STRUCTURE
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 Appendix: Leasing
 SUMMARY OF Learning Objectives
 SelfStudy Problem
 Solution to SelfStudy Problem
 Critical Thinking Questions
 Questions and Problems
 17: Dividends, Stock Repurchases, and Payout Policy
 18: Business Formation, Growth, and Valuation

19: Financial Planning and Forecasting
 19.1 FINANCIAL PLANNING
 19.2 FINANCIAL PLANNING MODELS
 19.3 A BETTER FINANCIAL PLANNING MODEL
 19.4 BEYOND THE BASIC PLANNING MODELS
 19.5 MANAGING AND FINANCING GROWTH
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 20: Options and Corporate Finance

21: International Financial Management
 21.1 INTRODUCTION TO INTERNATIONAL FINANCIAL MANAGEMENT
 21.2 FOREIGN EXCHANGE MARKETS
 21.3 INTERNATIONAL CAPITAL BUDGETING
 21.4 GLOBAL MONEY AND CAPITAL MARKETS
 21.5 INTERNATIONAL BANKING
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 A: Future Value and Present Value Tables
 B: Solutions to Selected Questions and Problems
 GLOSSARY
 Subject Index
 Company Index
Product Information
 Title: Fundamentals of Corporate Finance, Second Edition
 Author(s):
 Release date: October 2011
 Publisher(s): Wiley
 ISBN: 9780470876442