Book Description
Essentials of Corporate Finance with WileyPLUS offers a focused choice for instructors teaching the fundamentals of value creation by offering a balance of intuitive conceptual understanding, problem solving and analysis, and decision making skills.
Students who understand the intuition underlying the basic concepts of finance are better able to develop the critical judgments necessary to apply financial tools in real decisionmaking situations. Authors Bob Parrino, Tom Bates, and David Kidwell present a concise treatment of foundational topics while maintaining the same effective Learning by Doing pedagogy found in the successful Fundamentals edition. With WileyPLUS, students come to class prepared after working through Orion's adaptive learning module, develop problem solving skills with instant feedback on their work, and are guided through examples with Animated Learning by Doing.
Essentials of Corporate Finance includes every resource found in Fundamentals, giving instructors and students all the resources they need to be successful. This briefer edition will help your students develop a clear understanding of the material as well as how to apply Corporate Finance to their future studies and career paths.
WileyPLUS sold separately from text.
Table of Contents
 Cover Page
 Title Page
 Copyright
 Dedication
 About the Authors
 Preface
 Organization and Coverage
 Proven Pedagogical Framework
 Instructor and Student Resources
 Brief Contents
 Contents

Chapter 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

Chapter 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

Chapter 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 TOGETHER THE FINANCIAL STATEMENTS
 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

Chapter 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
 ETHICS CASE

Chapter 5: The Time Value of Money, Discounted Cash Flows, and Valuation
 5.1 THE TIME VALUE OF MONEY
 5.2 FUTURE VALUE AND COMPOUNDING
 5.3 PRESENT VALUE AND DISCOUNTING
 5.4 MULTIPLE CASH FLOWS
 5.5 LEVEL CASH FLOWS: ANNUITIES AND PERPETUITIES
 5.6 CASH FLOWS THAT GROW AT A CONSTANT RATE
 5.7 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
 ETHICS CASE

Chapter 6: Risk and Return
 6.1 RISK AND RETURN
 6.2 QUANTITATIVE MEASURES OF RETURN
 6.3 VARIANCE AND STANDARD DEVIATION AS MEASURES OF RISK
 6.4 RISK AND DIVERSIFICATION
 6.5 SYSTEMATIC RISK
 6.6 COMPENSATION FOR BEARING SYSTEMATIC RISK
 6.7 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

Chapter 7: Bond Valuation and the Structure of Interest Rates
 7.1 CORPORATE BONDS
 7.2 BOND VALUATION
 7.3 BOND YIELDS
 7.4 INTEREST RATE RISK
 7.5 THE STRUCTURE OF INTEREST RATES
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 ETHICS CASE

Chapter 8: Stock Valuation
 8.1 THE MARKET FOR STOCKS
 8.2 COMMON STOCK VALUATION
 8.3 STOCK VALUATION: SOME SIMPLIFYING ASSUMPTIONS
 8.4 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
 ETHICS CASE

Chapter 9: The Fundamentals of Capital Budgeting
 9.1 AN INTRODUCTION TO CAPITAL BUDGETING
 9.2 NET PRESENT VALUE
 9.3 THE PAYBACK PERIOD
 9.4 THE ACCOUNTING RATE OF RETURN
 9.5 INTERNAL RATE OF RETURN
 9.6 INVESTMENT DECISIONS WITH CAPITAL RATIONING
 9.7 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

Chapter 10: Cash Flows and Capital Budgeting
 10.1 CALCULATING PROJECT CASH FLOWS
 10.2 ESTIMATING CASH FLOWS IN PRACTICE
 10.3 FORECASTING FREE CASH FLOWS
 10.4 EVALUATING PROJECTS WITH DIFFERENT LIVES
 SUMMARY OF Learning Objectives
 SUMMARY OF Key Equations
 SelfStudy Problems
 Solutions to SelfStudy Problems
 Critical Thinking Questions
 Questions and Problems
 Sample Test Problems
 ETHICS CASE
 Chapter 11: The Cost of Capital

Chapter 12: Working Capital Management
 12.1 WORKING CAPITAL BASICS
 12.2 THE OPERATING AND CASH CONVERSION CYCLES
 12.3 WORKING CAPITAL MANAGEMENT STRATEGIES
 12.4 ACCOUNTS RECEIVABLE
 12.5 INVENTORY MANAGEMENT
 12.6 CASH MANAGEMENT AND BUDGETING
 12.7 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

Chapter 13: How Firms Raise Capital
 13.1 BOOTSTRAPPING
 13.2 VENTURE CAPITAL
 13.3 INITIAL PUBLIC OFFERING
 13.4 IPO PRICING AND COST
 13.5 GENERAL CASH OFFER BY A PUBLIC COMPANY
 13.6 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
 ETHICS CASE

Chapter 14: Capital Structure Policy
 14.1 CAPITAL STRUCTURE AND FIRM VALUE
 14.2 THE BENEFITS AND COSTS OF USING DEBT
 14.3 TWO THEORIES OF CAPITAL STRUCTURE
 14.4 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 Objective
 Critical Thinking Question
 Questions and Problems
 Chapter 15: Dividends, Stock Repurchases, and Payout Policy

Chapter 16: Financial Planning and Managing Growth
 16.1 FINANCIAL PLANNING
 16.2 FINANCIAL PLANNING MODELS
 16.3 A BETTER FINANCIAL PLANNING MODEL
 16.4 BEYOND THE BASIC PLANNING MODELS
 16.5 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

Chapter 17: International Financial Management
 17.1 INTRODUCTION TO INTERNATIONAL FINANCIAL MANAGEMENT
 17.2 FOREIGN EXCHANGE MARKETS
 17.3 INTERNATIONAL CAPITAL BUDGETING
 17.4 GLOBAL MONEY AND CAPITAL MARKETS
 17.5 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
 Appendix A: Future Value and Present Value Tables
 Appendix B: Solutions to Selected Questions and Problems
 Glossary
 Subject Index
 Company Index
Product Information
 Title: Fundamentals of Corporate Finance
 Author(s):
 Release date: October 2013
 Publisher(s): Wiley
 ISBN: 9781118218105