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| Preface | |
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| Introduction | |
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| Contemporary Financial Management | |
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| (R)evolution of the Finance Function | |
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| Goals of Financial Management | |
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| Organization and Structure of the Book | |
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| Conclusion | |
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| Summary | |
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| The Tax Environment | |
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| Organizational Form and Taxes | |
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| Corporate Income Taxes | |
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| Personal Income Taxes | |
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| Subchapter S Corporations | |
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| Summary | |
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| Financial Accounting Fundamentals | |
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| Introduction to Financial Statements | |
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| Objectives of Financial Accounting | |
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| The Auditor's Opinion | |
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| The Balance Sheet | |
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| Book Value of Securities | |
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| The Income Statement | |
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| Supplemental "Pro Forma" or "Operating" Earnings | |
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| Accumulated and Retained Earnings | |
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| Statement of Cash Flows | |
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| Sarbanes-Oxley and Financial Statements | |
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| Summary | |
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| Accounting-A Financial Information System | |
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| The Accounting Process | |
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| The Accrual Concept | |
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| Double-Entry Accounting | |
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| The Accounting Cycle | |
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| Summary | |
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| Special Topics in Accounting | |
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| Changes in the Equity Account | |
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| Depreciation Accounting | |
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| Inventory Accounting | |
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| Accounting for Leases | |
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| Intercorporate Investments | |
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| Summary | |
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| Financial Analysis and Control | |
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| Financial Statement Analysis | |
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| Objectives of Financial Statement Analysis | |
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| Ratio Analysis | |
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| Common-Size Statements | |
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| Sequence of Analysis | |
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| Case Study: Technosystems, Inc. | |
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| Financial Analysis, Financial Fraud, and Financial Stress | |
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| Summary | |
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| Financial Forecasting and Cash Budgeting | |
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| Objectives of Financial Forecasting | |
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| Short-Term Forecasts and Cash Budgeting | |
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| Financial Forecast for the Cutler Toy Company | |
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| Long-Term Financial Planning | |
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| Summary | |
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| Breakeven Analysis for Profit Planning | |
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| Assumptions of Breakeven Analysis | |
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| Breakeven Applications | |
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| The Breakeven Technique | |
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| Breakeven Charts | |
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| Nonlinear Breakeven Analysis | |
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| Summary | |
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| Working Capital Decisions | |
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| Working Capital Policy | |
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| Importance of Working Capital Policy | |
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| Short-Term Versus Long-Term Financing | |
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| Relative Magnitude of Working Capital Investment | |
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| Inventory Control Policy | |
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| Credit Policy | |
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| Accounts Payable Payment Policy | |
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| Summary | |
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| Working Capital Management | |
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| Management of Cash and Marketable Securities | |
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| Accounts Receivable Management | |
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| Inventory Management | |
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| Sources of Short-Term Financing | |
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| Summary | |
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| Mathematical Derivation of Economic Order Quantity | |
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| Long-Term Investment Decisions | |
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| Mathematics of Compound Interest | |
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| Compound Interest | |
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| Present Value | |
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| Present Value of an Annuity | |
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| Compound Value of an Annuity | |
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| Application to Personal Decision Making | |
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| Summary | |
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| Capital Budgeting | |
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| Payback | |
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| Net Present Value | |
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| Internal Rate of Return | |
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| Profitability Index | |
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| Selection of Method | |
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| Dealing with Uncertainty | |
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| Case Study: Droppitt Parcel Company | |
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| Summary | |
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| Cost of Capital | |
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| Cost of Capital Defined | |
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| Marginal Cost and Capital Budgeting | |
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| Calculating the Average Cost of Capital | |
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| The Capital Asset Pricing Model | |
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| Capital Structure Management | |
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| Summary | |
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| Long-Term Financing Decisions | |
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| Valuation of Financial Assets | |
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| Capitalization-of-Income Method | |
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| Selecting Appropriate Capitalization Rates | |
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| Bond Valuation | |
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| Preferred Stock Valuation | |
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| Common Stock Valuation | |
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| Summary | |
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| Valuing Closely Held Businesses | |
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| Valuation Principles | |
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| Revenue Ruling 59-60 | |
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| Case Analysis: Valuing Home Medical Care, Inc. | |
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| Summary | |
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| Sources and Forms of Long-Term Financing | |
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| The Money and Capital Markets | |
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| Intermediate- and Long-Term Debt | |
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| Lease Financing | |
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| Preferred Stock | |
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| Common Stock | |
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| Dividend Policy | |
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| Summary | |
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| Special Topics in Finance | |
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| Governance and Risk Management | |
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| Basics of Corporate Governance | |
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| Directors' Fiduciary Duties | |
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| Daily Governance of the Corporation | |
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| Risk Management | |
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| Summary | |
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| International Finance | |
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| Currencies | |
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| Futures, Options, and Swaps | |
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| Money Markets | |
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| Capital Markets | |
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| Summary | |
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| Mergers and Acquisitions | |
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| A Brief History of Mergers and Acquisitions | |
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| How Companies Can Work Together | |
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| How and Why to Do an Acquisition | |
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| The Politics and Economics of Acquisitions | |
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| LBOs, Hostile Takeovers, and Reverse M & A | |
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| Summary | |
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| Index | |