Analysis for Financial Management

Name: Analysis for Financial Management
Price: 2.82 USD
Availability: InStock
ISBN: 9780073258584

ISBN-10: 007325858X

ISBN-13: 9780073258584

Edition: 8th 2007 (Revised)

Authors: Robert C. Higgins

List price: $105.00

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Description:

The Eighth Edition of Analysis for Financial Management places an emphasis on the managerial applications of financial analysis in such a way that business students and nonfinancial executives understand the practice of financial management. By presenting the standard techniques and modern developments of financial management in a straightforward manner, readers will instinctively understand the featured managerial applications of financial analysis.

Book details

List price: $105.00
Edition: 8th
Copyright year: 2007
Publisher: McGraw-Hill Higher Education
Binding: Mixed Media
Pages: 430
Size: 7.25" wide x 9.00" long x 0.50" tall
Weight: 1.452
Language: English

Preface	p. xiii
Assessing the Financial Health of the Firm	p. 1
Interpreting Financial Statements	p. 3
The Cash Flow Cycle	p. 3
The Balance Sheet	p. 6
Current Assets and Liabilities	p. 10
Shareholders' Equity	p. 11
The Income Statement	p. 11
Measuring Earnings	p. 12
Sources and Uses Statements	p. 16
The Two-Finger Approach	p. 18
The Cash Flow Statement	p. 18
Financial Statements and the Value Problem	p. 23
Market Value versus Book Value	p. 23
Economic Income versus Accounting Income	p. 26
Imputed Costs	p. 27
Summary	p. 29
Additional Resources	p. 30
Problems	p. 31
Evaluating Financial Performance	p. 35
The Levers of Financial Performance	p. 35
Return on Equity	p. 36
The Three Determinants of ROE	p. 36
The Profit Margin	p. 38
Asset Turnover	p. 40
Financial Leverage	p. 46
Is ROE a Reliable Financial Yardstick?	p. 52
The Timing Problem	p. 52
The Risk Problem	p. 52
The Value Problem	p. 54
ROE or Market Price?	p. 56
Ratio Analysis	p. 56
Using Ratios Effectively	p. 59
Ratio Analysis of Harley-Davidson, Inc.	p. 60
International Differences in Financial Structure	p. 70
Comparisons among Foreign Companies Trading on U.S. Markets	p. 70
Public Companies	p. 72
The Move Toward International Accounting Standards	p. 74
Summary	p. 76
Additional Resources	p. 77
Problems	p. 79
Planning Future Financial Performance	p. 85
Financial Forecasting	p. 87
Pro Forma Statements	p. 87
Percent-of-Sales Forecasting	p. 88
Interest Expense	p. 94
Seasonality	p. 95
Pro Forma Statements and Financial Planning	p. 95
Computer-Based Forecasting	p. 96
Coping with Uncertainty	p. 100
Sensitivity Analysis	p. 100
Scenario Analysis	p. 101
Simulation	p. 102
Cash Flow Forecasts	p. 104
Cash Budgets	p. 105
The Techniques Compared	p. 108
Planning in Large Companies	p. 108
Summary	p. 110
Additional Resources	p. 111
Problems	p. 112
Managing Growth	p. 119
Sustainable Growth	p. 120
The Sustainable Growth Equation	p. 120
Too Much Growth	p. 123
Balanced Growth	p. 123
Biosite, Inc. 's Sustainable Growth Rate	p. 124
"What If" Questions	p. 126
What to Do When Actual Growth Exceeds Sustainable Growth	p. 126
Sell New Equity	p. 127
Increase Leverage	p. 128
Reduce the Payout Ratio	p. 129
Profitable Pruning	p. 129
Outsourcing	p. 130
Pricing	p. 131
Is Merger the Answer?	p. 131
Too Little Growth	p. 131
What to Do When Sustainable Growth Exceeds Actual Growth	p. 133
Ignore the Problem	p. 133
Return the Money to Shareholders	p. 134
Buy Growth	p. 135
Sustainable Growth and Inflation	p. 135
Sustainable Growth and Pro Forma Forecasts	p. 136
New Equity Financing	p. 137
Why Don't U.S. Corporations Issue More Equity?	p. 140
Summary	p. 141
Additional Resources	p. 142
Problems	p. 142
Financing Operations	p. 147
Financial Instruments and Markets	p. 149
Financial Instruments	p. 150
Bonds	p. 151
Common Stock	p. 157
Preferred Stock	p. 160
Financial Markets	p. 163
Private Equity Financing	p. 163
Initial Public Offerings	p. 166
Seasoned Issues	p. 161
Issue Costs	p. 110
Efficient Markets	p. 172
What Is an Efficient Market?	p. 173
Implications of Efficiency	p. 116
Forward Contracts, Options, and the Management of Corporate Risks	p. 177
Forward Markets	p. 178
Hedging in Money and Capital Markets	p. 182
Hedging with Options	p. 182
Limitations of Financial Market Hedging	p. 185
Valuing Options	p. 181
Summary	p. 190
Additional Resources	p. 191
Problems	p. 192
The Financing Decision	p. 197
Financial Leverage	p. 199
Measuring the Effects of Leverage on a Business	p. 203
Leverage and Risk	p. 204
Leverage and Earnings	p. 201
How Much to Borrow	p. 210
Irrelevance	p. 210
Tax Benefits	p. 212
Distress Costs	p. 212
Flexibility	p. 217
Market Signaling	p. 219
Management Incentives	p. 222
The Financing Decision and Growth	p. 222
Selecting a Maturity Structure	p. 226
Inflation and Financing Strategy	p. 226
The Irrelevance Proposition	p. 227
No Taxes	p. 221
Taxes	p. 229
Summary	p. 231
Additional Resources	p. 232
Problems	p. 232
Evaluating Investment Opportunities	p. 237
Discounted Cash Flow Techniques	p. 239
Figures of Merit	p. 240
The Payback Period and the Accounting Rate of Return	p. 241
The Time Value of Money	p. 242
Equivalence	p. 246
The Net Present Value	p. 241
The Benefit-Cost Ratio	p. 249
The Internal Rate of Return	p. 249
A Few Applications and Extensions	p. 253
Mutually Exclusive Alternatives and Capital Rationing	p. 256
The IRR in Perspective	p. 257
Determining the Relevant Cash Flows	p. 258
Depreciation	p. 260
Working Capital and Spontaneous Sources	p. 262
Sunk Costs	p. 263
Allocated Costs	p. 264
Excess Capacity	p. 265
Financing Costs	p. 261
Mutually Exclusive Alternatives and Capital Rationing	p. 269
What Happened to the Other $578,000?	p. 270
Unequal Lives	p. 271
Capital Rationing	p. 273
The Problem of Future Opportunities	p. 215
A Decision Tree	p. 215
Summary	p. 276
Additional Resources	p. 277
Problems	p. 278
Risk Analysis in Investment Decisions	p. 283
Risk Defined	p. 285
Risk and Diversification	p. 287
Estimating Investment Risk	p. 289
Three Techniques for Estimating Investment Risk	p. 290
Including Risk in Investment Evaluation	p. 291
Risk-Adjusted Discount Rates	p. 291
The Cost of Capital	p. 293
The Cost of Capital Defined	p. 294
Cost of Capital for Harley-Davidson, Inc.	p. 296
The Cost of Capital in Investment Appraisal	p. 305
Multiple Hurdle Rates	p. 306
Four Pitfalls in the Use of Discounted Cash Flow Techniques	p. 308
The Enterprise Perspective versus the Equity Perspective	p. 309
Inflation	p. 311
Real Options	p. 312
Excessive Risk Adjustment	p. 315
Economic Value Added	p. 317
EVA and Investment Analysis	p. 318
EVA's Appeal	p. 319
A Cautionary Note	p. 320
Asset Beta and Adjusted Present Value	p. 321
Beta and Financial Leverage	p. 321
Using Asset Beta to Estimate Equity Beta	p. 322
Asset Beta and Adjusted Present Value	p. 323
Summary	p. 326
Additional Resources	p. 328
Problems	p. 329
Business Valuation and Corporate Restructuring	p. 335
Valuing a Business	p. 337
Assets or Equity?	p. 337
Dead or Alive?	p. 338
Minority Interest or Control?	p. 340
Discounted Cash Flow Valuation	p. 340
Free Cash Flow	p. 342
The Terminal Value	p. 342
A Numerical Example	p. 346
Problems with Present Value Approaches to Valuation	p. 348
Valuation Based on Comparable Trades	p. 349
Lack of Marketability	p. 353
The Market for Control	p. 354
The Premium for Control	p. 354
Financial Reasons for Restructuring	p. 356
The Empirical Evidence	p. 363
The Daimler-Chrysler Merger	p. 365
The Venture Capital Method of Valuation	p. 368
The Venture Capital Method-One Financing Round	p. 369
The Venture Capital Method-Multiple Financing Rounds	p. 372
Why Do Venture Capitalists Demand Such High Returns?	p. 374
Summary	p. 375
Additional Resources	p. 376
Problems	p. 377
Present Value of $1	p. 383
Present Value of an Annuity of $1	p. 385
Glossary	p. 387
Suggested Answers to Odd-Numbered Problems	p. 399
Index	p. 421
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