Foundations of Financial Management

by Lee, Cheng F.; Finnerty, Joseph E.; Norton, Edgar A.

• ISBN13: 9780314095725
• ISBN10: 0314095721
• Edition: 1st
• Format: Hardcover
• Copyright: 1996-10-01
• Publisher: Cengage Learning

Summary

Providing students with a firm foundation in financial theory and concepts, this text takes a cross-functional approach to help students understand how finance is integrated with corporate strategy, marketing, human resources, and other key business functions. The context of the global economy is introduced early and reinforced throughout. "Integrative Projects", based on a case study of a well-known large corporation (complete financial statements are included in an appendix), apply concepts and techniques covered throughout the text. An Internet appendix, showing students how to locate financial information on the World Wide Web, is also included.

Table of Contents

Preface	xxiii
Part I Overview and Background	1	(146)
Financial Management in the Firm: An Introduction	3	(15)
Organizational Structure and Taxes	18	(13)
Domestic and Global Finance	31	(27)
Accounting Information and Financial Statement Analysis	58	(46)
Developing a Long-Term Financial Plan	104	(43)
Part II Valuation Principles and Applications	147	(76)
The Time Value of Money	149	(38)
Valuation of Stocks and Bonds	187	(36)
Part III Capital Budgeting and the Risk/Return Tradeoff	223	(120)
Project Analysis and Capital Budgeting Criteria	225	(28)
Estimating Project Cash Flows	253	(33)
Evaluating Project NPV with Uncertain Cash Flows	286	(27)
Total Risk, Systematic Risk, and Unsystematic Risk	313	(30)
Part IV Cost of Capital, Financing Choices, and the Dividend Decision	343	(142)
The Cost of Capital	345	(31)
The Debt/Equity Mix	376	(32)
Investment Banking and Raising Equity Capital	408	(28)
Debt Financing Choices	436	(27)
Dividend Policy: Theory and Practice	463	(22)
Part V Topics in Short-Term Finance	485	(102)
Short-Term Financial Planning and Management	487	(26)
Cash and Marketable Securities Management	513	(27)
Credit Management	540	(22)
Short-Term Financing	562	(25)
Part VI Special Topics in Financial Management	587
Derivatives: Options, Futures, and Swaps	589	(28)
Business Combinations and Divestitures	617	(19)
Bankruptcy, Workouts, and Corporate Reorganization	636
Appendix A Tables	A-2
Appendix B 1995 Annual Financial Report for Johnson & Johnson	A-8
Appendix C World Wide Web	A-40
Appendix D Key Equations	A-43
Appendix E Answers to Even-Numbered End-of-Chapter Problems	A-58
Index	I-1