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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 | |