Book description
Parrino, Kidwell & Bates, Fundamentals of Corporate Finance 2nd 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 self-test.
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 knowledge-based 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. Real-world examples offer repeated opportunities to develop problem-solving skills through stepped-out 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study Problems
- Critical Thinking Questions
- Questions and Problems
- Sample Test Problems
-
4: Analyzing Financial Statements
- 4.1 BACKGROUND FOR FINANCIAL STATEMENT ANALYSIS
- 4.2 COMMON-SIZE 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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 BREAK-EVEN ANALYSIS
- 12.4 RISK ANALYSIS
- 12.5 INVESTMENT DECISIONS WITH CAPITAL RATIONING
- SUMMARY OF Learning Objectives
- SUMMARY OF Key Equations
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study Problems
- Critical Thinking Questions
- Questions and Problems
- Sample Test Problems
- Appendix: Leasing
- SUMMARY OF Learning Objectives
- Self-Study Problem
- Solution to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
- Self-Study Problems
- Solutions to Self-Study 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
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