This text provides an introduction to financial decision-making that links the concepts to four key principles of finance. Getting StartedPrinciples of Finance; Firms and the Financial Market; Understanding Financial Statements, Taxes, and Cash Flows; Financial Analysis: Sizing Up Firm Performance; Time Value of Money - The Basics; Time Value of Money - Multiple Cash Flows and Annuities; An Introduction to Risk and ReturnHistory of Financial Market Returns; Risk and ReturnCapital Market Theory; Debt Valuation and Interest Rates; Stock Valuation; Investment Decision Criteria; Forecasting Project Cash Flows; Risk Analysis of Project Cash Flows; The Cost of Capital; Capital Structure Policy; Dividend Policy; Financial Forecasting and Planning; Working Capital Management; International Finance; Corporate Risk Management For an enduring understanding of the basic tools and fundamental principles upon which finance is based.
I. INTRODUCTION TO FINANCIAL MANAGEMENT.
1. Getting Started—Principles of Finance
2. Firms and the Financial Market
3. Understanding Financial Statements, Taxes, and Cash Flows
4.Financial Analysis: Sizing Up Firm Performance
II. VALUATION OF FINANCIAL ASSETS.
5. Time Value of Money – The Basics
6. Time Value of Money – Multiple Cash Flows and Annuities
7. An Introduction to Risk and Return—History of Financial Market Returns
8. Risk and Return—Capital Market Theory
9. Debt Valuation and Interest Rates
10. Stock Valuation
III. CAPITAL BUDGETING.
11. Investment Decision Criteria
12. Forecasting Project Cash Flows
13. Risk Analysis of Project Cash Flows
14. The Cost of Capital
IV. CAPITAL STRUCTURE AND DIVIDEND POLICY.
15. Capital Structure Policy
16. Dividend Policy
V. LIQUIDITY MANAGEMENT AND SPECIAL TOPICS IN FINANCE.
17. Financial Forecasting and Planning
18. Working Capital Management
19. International Finance
20. Corporate Risk Management
Appendix A: Using a Financial Calculator and Spreadsheet to
Solve Time Value of Money Problems
Appendix B-E: Time Value of Money Tables