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| Preface | |
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| Overview | |
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| Cfo's Place In The Corporation | |
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| First Days in the Position | |
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| Specific CFO Responsibilities | |
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| Overview of the Change Management Process | |
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| Differences between the Controller and CFO Positions | |
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| Relationship of the Controller to the CFO | |
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| Other Direct Reports: The Treasurer | |
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| Other Direct Reports: The Investor Relations Officer | |
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| Summary | |
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| Financial Strategy | |
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| Cash | |
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| Investments | |
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| Working Capital | |
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| Inventory: Inventory Reduction Decision | |
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| Fixed Assets: Lease versus Buy Decision | |
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| Payables | |
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| Debt | |
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| Equity | |
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| Fixed Expenses: Step Costing Decision | |
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| Payroll Expenses: Temporary Labor Versus Permanent Staffing Decision | |
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| Entities: Divestiture Decision | |
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| Systems: When to Use Throughput Costing | |
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| High-Volume, Low-Price Sale Decision Using Throughput Costing | |
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| Capital Budgeting Decision Using Throughput Costing | |
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| Make Versus Buy Decision Using Throughput Costing | |
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| Summary | |
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| Tax Strategy | |
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| Accumulated Earnings Tax | |
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| Cash Method of Accounting | |
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| Inventory Valuation | |
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| Mergers and Acquisitions | |
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| Net Operating Loss Carryforwards | |
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| Nexus | |
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| Project Costing | |
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| S Corporation | |
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| Sales and Use Taxes | |
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| Transfer Pricing | |
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| Unemployment Taxes | |
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| Summary | |
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| Information Technology Strategy | |
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| Reasons for Devising an Information Technology Strategy | |
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| Developing the Information Technology Strategy | |
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| Technical Strategies | |
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| Specific Applications | |
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| Summary | |
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| Accounting | |
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| Performance Measurement Systems | |
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| Creating a Performance Measurement System | |
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| Asset Utilization Measurements | |
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| Operating Performance Measurements | |
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| Cash-Flow Measurements | |
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| Liquidity Measurements | |
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| Solvency Measurements | |
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| Return on Investment Measurements | |
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| Market Performance Measurements | |
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| Quality of Earnings Ratio | |
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| Summary | |
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| Control Systems | |
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| Need for Control Systems | |
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| Types of Fraud | |
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| Key Controls | |
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| When to Eliminate Controls | |
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| Summary | |
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| Audit function | |
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| Composition of the Audit Committee | |
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| Role of the Audit Committee | |
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| Purpose of the External Auditors | |
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| Dealing With External Auditors | |
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| Impact of the Sarbanes-Oxley Act on the Audit Function | |
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| Role of the Internal Audit Function | |
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| Managing the Internal Audit Function | |
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| Summary | |
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| Financial Analysis | |
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| Cost Of Capital | |
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| Components | |
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| Calculating the Cost of Debt | |
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| Calculating the Cost of Equity | |
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| Calculating the Weighted Cost of Capital | |
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| Incremental Cost of Capital | |
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| Using the Cost of Capital in Special Situations | |
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| Modifying the Cost of Capital to Enhance Shareholder Value | |
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| Strategize Cost of Capital Reductions | |
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| Summary | |
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| Capital Budgeting | |
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| Hurdle Rate | |
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| Payback Period | |
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| Net Present Value | |
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| Internal Rate of Return | |
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| Throughput-Based Capital Budgeting | |
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| Problems with the Capital Budget Approval Process | |
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| Cash Flow Modeling Issues | |
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| Funding Decisions for Research and Development Projects | |
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| Capital Investment Proposal Form | |
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| Post-Completion Project Analysis | |
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| Summary | |
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| Other Financial Analysis Topics | |
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| Risk Analysis | |
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| Capacity Utilization | |
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| Breakeven Analysis | |
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| Business Cycle Forecasting | |
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| Summary | |
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| Funding | |
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| Cash Management And Consolidation | |
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| Cash Forecasting Model | |
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| Information Sources for the Cash Forecast | |
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| Measuring Cash Forecast Accuracy | |
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| Cash Forecasting Automation | |
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| Cash Concentration Overview | |
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| Physical Sweeping | |
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| Notional Pooling | |
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| Comparison of Account Sweeping and Notional Pooling | |
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| Cash Management Controls | |
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| Summary | |
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| Investing Excess Funds | |
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| Investment Criteria | |
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| Investment Restrictions | |
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| Investment Options | |
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| Investment Strategies | |
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| Summary | |
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| Obtaining Debt Financing | |
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| Management of Financing Issues | |
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| Bank Relations | |
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| Accounts Payable Payment Delay | |
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| Accounts Receivable Collection Acceleration | |
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| Credit Cards | |
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| Employee Trade-Offs | |
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| Factoring | |
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| Field Warehouse Financing | |
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| Floor Planning | |
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| Inventory Reduction | |
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| Lease | |
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| Line of Credit | |
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| Loans | |
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| Merchant Card Advances | |
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| Preferred Stock | |
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| Sale and Leaseback | |
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| Summary | |
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| Obtaining Equity Financing | |
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| Types of Stock | |
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| Private Placement of Stock | |
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| Layout of the Offering Memorandum | |
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| Establishing a Valuation for the Offering Memorandum | |
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| Swapping Stock for Expenses | |
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| Swapping Stock for Cash | |
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| Stock Warrants | |
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| Stock Subscriptions | |
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| Private Investment in Public Equity | |
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| Buying Back Shares | |
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| Rule 144 | |
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| Rule 10b5-1 | |
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| Summary | |
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| Publicly Held Company. | |
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| Initial Public Offering | |
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| Reasons to Go Public | |
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| Reasons Not to Go Public | |
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| Cost of an Ipo | |
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| Preparing for the IPO | |
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| Finding an Underwriter | |
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| Registering for and Completing the IPO | |
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| Alternatives for Selling Securities | |
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| SCOR | |
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| Trading on an Exchange | |
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| American Stock Exchange | |
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| Overview of the NASDAQ | |
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| NASDAQ Capital Market | |
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| NASDAQ Global Market | |
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| New York Stock Exchange | |
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| Comparing the Stock Exchanges | |
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| Over-the-Counter Stocks | |
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| Summary | |
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| Reports To The Securities And Exchange Commission | |
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| Overview | |
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| Form 8-K | |
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| Form 10-Q and Form 10-K | |
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| Form S-1 | |
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| Form S-3 | |
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| Form S-8 | |
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| Shelf Registration | |
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| Declaring a Registration Statement Effective | |
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| Reporting Insider Securities Ownership and Trading | |
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| Edgar Filing Systems | |
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| Fedwire Payments | |
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| Summary | |
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| Investment Community | |
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| Introduction | |
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| Analyst's Perspective | |
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| Finding the Right Analyst | |
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| Sell Side: Analysts | |
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| Negative Analyst Report | |
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| Sell Side: Brokers | |
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| Sell Side: Investment Bankers | |
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| Sell Side: Investor Relations Specialists | |
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| Buy Side: Types of Investors | |
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| Buy Side: Institutional Investors | |
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| Buy Side: Individual Investors | |
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| Buy Side: Presentations to Investors | |
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| Summary | |
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| Taking a Company Private | |
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| Going Private Transaction | |
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| Rule 13e-3 | |
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| Filling Out Schedule 13E-3 | |
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| Form 15 | |
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| 300 Shareholder Limit | |
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| Summary | |
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| Management | |
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| Risk Management - General Concepts | |
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| Risk Management Policies | |
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| Risk Management Planning | |
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| Manager of Risk Management | |
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| Risk Management Procedures | |
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| Types of Insurance Companies | |
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| Evaluating the Health of an Insurance Carrier | |
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| Claims Administration | |
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| Insurance Files | |
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| Annual Risk Management Report | |
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| Summary | |
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| Risk Management - Foreign Exchange | |
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| Foreign Exchange Quote Terminology | |
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| Nature of Foreign Exchange Risk | |
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| Data Collection for Foreign Exchange Risk Management | |
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| Foreign Exchange Hedging Strategies | |
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| Accept the Risk | |
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| Insist on Home Currency Payment | |
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| Currency Surcharges | |
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| Get Paid on Time | |
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| Foreign Currency Loans | |
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| Sourcing Changes | |
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| Foreign Currency Accounts | |
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| Unilateral, Bilateral and Multilateral Netting Arrangements | |
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| Forward Exchange Contracts | |
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| Currency Futures | |
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| Currency Options | |
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| Currency Swaps | |
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| Proxy Hedging | |
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| Summary | |
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| Outsourcing The Accounting And Finance Functions | |
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| Advantages and Disadvantages of Outsourcing | |
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| Contractual Issues | |
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| Transition Issues | |
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| Controlling Supplier Performance | |
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| Measuring Outsourced Activities | |
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| Managing Suppliers | |
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| Dropping Suppliers | |
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| Summary | |
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| Mergers And Acquisitions | |
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| Evaluating Acquisition Targets | |
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| Complexity Analysis | |
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| Evaluate Acquisition Targets with Alliances | |
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| Valuing an Acquisition Target | |
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| Alternative Valuation Methods | |
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| Control Premium | |
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| Synergy Gains | |
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| Discounted Cash Flow (DCF) Model | |
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| Constructing Cash Flow Scenarios | |
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| Cash Flow Adjusting Factors | |
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| Earnout | |
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| Qualitative Factors | |
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| Which Valuation Method is Best? | |
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| Method of Payment | |
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| Types of Acquisitions | |
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| Tax Implications of a Acquisition | |
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| Asset Acquisition | |
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| Type "A" Reorganization | |
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| Type "B" Reorganization | |
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| Type "C" Reorganization | |
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| Type "D" Reorganization | |
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| Triangular Merger | |
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| Reverse Triangular Merger | |
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| Terms of the Acquisition Agreement | |
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| When to Use an Investment Banker | |
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| Summary | |
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| Other Topics | |
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| Employee Compensation | |
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| Deferred Compensation | |
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| Life Insurance | |
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| Stock Appreciation Rights | |
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| Stock Options | |
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| Restricted Stock Units | |
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| Bonus Sliding Scale | |
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| Cut Benefit Costs with a Captive Insurance Company | |
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| Summary | |
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| Bankruptcy | |
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| Applicable Bankruptcy Laws | |
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| Players in the Bankruptcy Drama | |
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| Creditor and Shareholder Payment Priorities | |
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| Bankruptcy Sequence of Events | |
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| Tax Liabilities in a Bankruptcy | |
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| Special Bankruptcy Rules | |
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| Bankruptcy Act of 2005 | |
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| Alternatives to Bankruptcy | |
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| Summary | |
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| New Cfo Checklist | |
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| Performance Measurement Checklist | |
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| Due Diligence Checklist | |
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| About the Author | |
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| Index | |