1 The Financial Manager and the Firm 1-1

1.1 The Role of the Financial Manager 1-2

Stakeholders 1-2

It’s All About Cash Flows 1-2

Three Fundamental Decisions in Financial Management 1-4

1.2 Forms of Business Organization 1-6

Sole Proprietorships 1-7

Partnerships 1-8

Corporations 1-8

1.3 Managing the Financial Function 1-10

Organizational Structure 1-10

Positions Reporting to the CFO 1-11

External Auditor 1-11

The Audit Committee 1-12

The Compliance and Ethics Director 1-12

1.4 The Goal of the Firm 1-12

What Should Management Maximize? 1-12

Why Not Maximize Profits? 1-13

Maximize the Value of the Firm’s Stock 1-13

Can Management Decisions Affect Stock Prices? 1-14

1.5 Agency Conflicts: Separation of Ownership and Control 1-15

Ownership and Control 1-16

Agency Relationships 1-16

Do Managers Really Want to Maximize Stock Price? 1-16

Aligning the Interests of Managers and Stockholders 1-17

Sarbanes-Oxley and Other Regulatory Reforms 1-18

1.6 The Importance of Ethics in Business 1-21

Business Ethics 1-21

Are Business Ethics Different from Everyday Ethics? 1-21

Types of Ethical Conflicts in Business 1-22

The Importance of an Ethical Business Culture 1-23

Serious Consequences 1-23

Summary of Learning Objectives / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems / Sample Test Problems

Ethics Case: Incentives And Ethics: Cross-Selling at Wells Fargo 1-27

2 The Financial System and the Level of Interest Rates 2-1

2.1 The Financial System 2-2

The Financial System at Work 2-3

How Funds Flow through the Financial System 2-3

2.2 Direct Financing 2-4

A Direct Market Transaction 2-5

Investment Banks and Direct Financing 2-5

2.3 Types of Financial Markets 2-7

Primary and Secondary Markets 2-7

Exchanges and Over-the-Counter Markets 2-8

Money and Capital Markets 2-8

Public and Private Markets 2-9

Futures and Options Markets 2-10

2.4 Market Efficiency 2-10

Efficient Market Hypotheses 2-11

2.5 Financial Institutions and Indirect Financing 2-12

Indirect Market Transactions 2-12

Financial Institutions and Their Services 2-13

Corporations and the Financial System 2-14

2.6 The Determinants of Interest Rate Levels 2-16

The Real Rate of Interest 2-16

Loan Contracts and Inflation 2-18

The Fisher Equation and Inflation 2-18

Cyclical and Long-Term Trends in Interest Rates 2-20

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

3 Financial Statements, Cash Flows, and Taxes 3-1

3.1 Financial Statements and Accounting Principles 3-2

The Annual Report 3-2

Generally Accepted Accounting Principles 3-3

Fundamental Accounting Principles 3-3

International GAAP 3-4

Illustrative Company: Diaz Manufacturing 3-5

3.2 The Balance Sheet 3-5

Current Assets and Liabilities 3-7

Long-Term Assets and Liabilities 3-8

Equity 3-9

3.3 Market Value versus Book Value 3-11

A More Informative Balance Sheet 3-11

A Market-Value Balance Sheet 3-12

3.4 The Income Statement and the Statement of Retained Earnings 3-14

The Income Statement 3-14

The Statement of Retained Earnings 3-16

3.5 The Statement of Cash Flows 3-17

Sources and Uses of Cash 3-17

3.6 Tying Together the Financial Statements 3-20

3.7 Cash Flow to Investors 3-22

Net Income versus the Cash Flow to Investors 3-22

Cash Flow to Investors: Putting It All Together 3-26

3.8 Federal Income Tax 3-27

Corporate Income Tax Rates 3-27

Average versus Marginal Tax Rates 3-28

Unequal Treatment of Dividends and Interest Payments 3-28

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

4 Analyzing Financial Statements 4-1

4.1 Background for Financial Statement Analysis 4-2

Perspectives on Financial Statement Analysis 4-2

Guidelines for Financial Statement Analysis 4-3

4.2 Common-Size Financial Statements 4-4

Common-Size Balance Sheets 4-4

Common-Size Income Statements 4-6

4.3 Financial Ratios and Firm Performance 4-7

Why Ratios are Better Measures 4-7

Short-Term Liquidity Ratios 4-8

Efficiency Ratios 4-11

Leverage Ratios 4-14

Profitability Ratios 4-18

Market-Value Indicators 4-21

Concluding Comments on Ratios 4-22

4.4 The Dupont System: A Diagnostic Tool 4-22

An Overview of the DuPont System 4-22

The ROA Equation 4-23

The ROE Equation 4-24

The DuPont Equation 4-25

Applying the DuPont System 4-25

Is Maximizing ROE an Appropriate Goal? 4-27

4.5 Selecting a Benchmark 4-27

Trend Analysis 4-27

Industry Analysis 4-28

Peer Group Analysis 4-28

4.6 Using Financial Ratios 4-30

Performance Analysis of Diaz Manufacturing 4-30

Limitations of Financial Statement Analysis 4-33

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Ethics Case: A Sad Tale: The Demise of Arthur Andersen 4-45

5 The Time Value of Money 5-1

5.1 The Time Value of Money 5-2

Consuming Today or Tomorrow 5-2

Time Lines as Aids to Problem Solving 5-3

Financial Calculator 5-3

5.2 Future Value and Compounding 5-4

Single-Period Investment 5-4

Two-Period Investment 5-5

The Future Value Equation 5-6

Using a Calculator to Compute the Future Value Factor 5-8

Future Value Factor Tables 5-8

Applying the Future Value Formula 5-8

Calculator Tips for Future Value Problems 5-13

5.3 Present Value and Discounting 5-16

Single-Period Investment 5-16

Multiple-Period Investment 5-17

The Present Value Equation 5-17

Future and Present Value Equations Are the Same 5-17

Applying the Present Value Formula 5-18

The Relations Among Time, the Discount Rate, and Present Value 5-20

Calculator Tips for Present Value Problems 5-20

Future Value Versus Present Value 5-21

5.4 Additional Concepts and Applications 5-22

Finding the Interest Rate 5-23

Finding How Many Periods It Takes an Investment to Grow a Certain Amount 5-24

The Rule of 72 5-25

Compound Growth Rates 5-25

Concluding Comments 5-27

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

6 Discounted Cash Flows and Valuation 6-1

6.1 Multiple Cash Flows 6-2

Future Value of Multiple Cash Flows 6-2

Present Value of Multiple Cash Flows 6-5

6.2 Level Cash Flows: Annuities and Perpetuities 6-9

Present Value of an Annuity 6-9

Future Value of an Annuity 6-18

Perpetuities 6-20

Annuities Due 6-21

6.3 Cash Flows That Grow at a Constant Rate 6-24

Growing Annuity 6-24

Growing Perpetuity 6-25

6.4 The Effective Annual Interest Rate 6-26

Why the Confusion? 6-26

Calculating the Effective Annual Interest Rate 6-26

Comparing Interest Rates 6-27

Consumer Protection Acts and Interest Rate Disclosure 6-29

The Appropriate Interest Rate Factor 6-29

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Appendix: Deriving the Formula for the Present Value of an Ordinary Annuity 6-37

Problem 6-38

Ethics Case: America’s Ailing Drug Prices 6-38

7 Risk and Return 7-1

7.1 Risk and Return 7-2

7.2 Quantitative Measures of Return 7-3

Holding Period Returns 7-3

Expected Returns 7-4

7.3 Variance and Standard Deviation as Measures of Risk 7-8

Calculating Variance and Standard Deviation 7-8

Interpreting Variance and Standard Deviation 7-9

Historical Market Performance 7-12

Arithmetic Average and Geometric (Compounded) Average Returns 7-15

7.4 Risk and Diversification 7-17

Single-Asset Portfolios 7-17

Portfolios with More Than One Asset 7-19

The Limits of Diversification 7-25

7.5 Systematic Risk 7-26

Why Systematic Risk Is All That Matters 7-27

Measuring Systematic Risk 7-27

7.6 Compensation for Bearing Systematic Risk 7-30

7.7 The Capital Asset Pricing Model 7-31

The Security Market Line 7-32

The Capital Asset Pricing Model and Portfolio Returns 7-33

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

8 Bond Valuation and the Structure of Interest Rates 8-1

8.1 Corporate Bonds 8-2

Market for Corporate Bonds 8-2

Bond Price Information 8-3

Types of Corporate Bonds 8-3

8.2 Bond Valuation 8-4

The Bond Valuation Formula 8-5

Calculator Tip: Bond Valuation Problems 8-6

Par, Premium, and Discount Bonds 8-7

Semiannual Compounding 8-9

Zero Coupon Bonds 8-10

8.3 Bond Yields 8-12

Yield to Maturity 8-12

Effective Annual Yield 8-13

Realized Yield 8-15

8.4 Interest Rate Risk 8-15

Bond Theorems 8-16

Bond Theorem Applications 8-17

8.5 The Structure of Interest Rates 8-18

Marketability 8-19

Call Provision 8-19

Default Risk 8-19

The Term Structure of Interest Rates 8-21

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Ethics Case: The Subprime Mortgage Market Meltdown: How Did It Happen? 8-29

9 Stock Valuation 9-1

9.1 The Market for Stocks 9-2

Secondary Markets 9-2

Secondary Markets and Their Efficiency 9-3

Stock Market Indexes 9-5

Reading the Stock Market Listings 9-5

Common and Preferred Stock 9-6

Preferred Stock: Debt or Equity? 9-7

9.2 Common Stock Valuation 9-8

A One-Period Model 9-8

A Perpetuity Model 9-9

The General Dividend-Valuation Model 9-11

The Growth Stock Pricing Paradox 9-11

9.3 Stock Valuation: Some Simplifying Assumptions 9-12

Zero-Growth Dividend Model 9-13

Constant-Growth Dividend Model 9-13

Computing Future Stock Prices 9-16

The Relation between R and g 9-17

Mixed (Supernormal) Growth Dividend Model 9-18

9.4 Valuing Preferred Stock 9-21

Preferred Stock with a Fixed Maturity 9-22

Preferred Stock with No Maturity 9-23

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Ethics Case: Insider Trading: Have I Got a Stock Tip for You! 9-29

10 The Fundamentals of Capital Budgeting 10-1

10.1 An Introduction to Capital Budgeting 10-2

The Importance of Capital Budgeting 10-2

The Capital Budgeting Process 10-3

Sources of Information 10-4

Classification of Investment Projects 10-4

Basic Capital Budgeting Terms 10-5

10.2 Net Present Value 10-6

Valuation of Real Assets 10-6

NPV—The Basic Concept 10-6

NPV and Value Creation 10-7

Framework for Calculating NPV 10-8

Net Present Value Techniques 10-9

Concluding Comments on NPV 10-13

10.3 The Payback Period 10-14

Computing the Payback Period 10-14

How the Payback Period Performs 10-15

Discounted Payback Period 10-16

Evaluating the Payback Rule 10-17

10.4 The Accounting Rate of Return 10-18

10.5 Internal Rate of Return 10-19

Calculating the IRRy 10-20

When the IRR and NPV Methods Agree 10-21

When the NPV and IRR Methods Disagree 10-23

Modified Internal Rate of Return (MIRR) 10-26

IRR versus NPV: A Final Comment 10-28

10.6 Investment Decisions with Capital Rationing 10-29

Capital Rationing in a Single Period 10-30

Capital Rationing across Multiple Periods 10-32

10.7 Capital Budgeting in Practice 10-33

Practitioners’ Methods of Choice 10-33

Postaudit and Periodic Reviews 10-34

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

11 Cash Flows and Capital Budgeting 11-1

11.1 Calculating Project Cash Flows 11-2

Incremental After-Tax Free Cash Flows 11-3

The FCF Calculation 11-3

Cash Flows from Operations 11-5

Cash Flows Associated with Capital Expenditures and Net Working Capital 11-6

The FCF Calculation: An Example 11-6

FCF versus Accounting Earnings 11-8

11.2 Estimating Cash Flows in Practice 11-10

Five General Rules for Incremental After-Tax Free Cash Flow Calculations 11-11

Nominal versus Real Cash Flows 11-14

Tax Rates and Depreciation 11-16

Computing the Terminal-Year FCF 11-19

Expected Cash Flows 11-22

11.3 Forecasting Free Cash Flows 11-23

Cash Flows from Operations 11-24

Cash Flows Associated with Capital Expenditures and Net Working Capital 11-24

11.4 Special Cases (Optional) 11-26

Projects with Different Lives 11-26

When to Replace an Existing Asset 11-28

The Cost of Using an Existing Asset 11-29

When to Harvest an Asset 11-30

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Ethics Case: Unilever’s Sustainable Living Plan 11-37

12 Evaluating Project Economics 12-1

12.1 Variable Costs, Fixed Costs, and Project Risk 12-2

Cost Structure and Sensitivity of EBITDA to Revenue Changes 12-3

Cost Structure and Sensitivity of EBIT to Revenue Changes 12-5

12.2 Calculating Operating Leverage 12-9

Degree of Pretax Cash Flow Operating Leverage 12-9

Degree of Accounting Operating Leverage 12-10

12.3 Break-Even Analysis 12-11

Pretax Operating Cash Flow Break-Even 12-12

Accounting Operating Profit (EBIT) Break-Even 12-13

12.4 The Economic Break-Even Point 12-15

12.5 Risk Analysis 12-19

Sensitivity Analysis 12-20

Scenario Analysis 12-20

Simulation Analysis 12-21

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

13 The Cost of Capital 13-1

13.1 The Firm’s Overall Cost of Capital 13-2

The Finance Balance Sheet 13-3

Estimating a Firm’s Cost of Capital 13-5

13.2 The Cost of Debt 13-7

Key Concepts for Estimating the Cost of Debt 13-7

Estimating the Current Cost of a Bond or an Outstanding Loan 13-8

Taxes and the Cost of Debt 13-10

Estimating the Cost of Debt for a Firm 13-11

13.3 The Cost of Equity 13-13

Common Stock 13-13

Preferred Stock 13-19

13.4 Using the WACC in Practice 13-21

Calculating WACC: An Example 13-21

Limitations of WACC as a Discount Rate for Evaluating Projects 13-23

Alternatives to Using WACC for Evaluating Projects 13-26

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

14 Working Capital Management 14-1

14.1 Working Capital Basics 14-2

Working Capital Terms and Concepts 14-3

Working Capital Accounts and Trade-Offs 14-4

14.2 The Operating and Cash Conversion Cycles 14-5

Operating Cycle 14-7

Cash Conversion Cycle 14-8

14.3 Working Capital Management Strategies 14-10

Flexible Current Asset Management Strategy 14-11

Restrictive Current Asset Management Strategy 14-11

The Working Capital Trade-Off 14-11

14.4 Accounts Receivable 14-13

Terms of Sale 14-13

Aging Accounts Receivable 14-14

14.5 Inventory Management 14-16

Economic Order Quantity 14-16

Just-in-Time Inventory Management 14-17

14.6 Cash Management and Budgeting 14-18

Reasons for Holding Cash 14-18

Cash Collection 14-19

14.7 Financing Working Capital 14-20

Strategies for Financing Working Capital 14-20

Financing Working Capital in Practice 14-22

Sources of Short-Term Financing 14-22

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

15 How Firms Raise Capital 15-1

15.1 Bootstrapping 15-2

How New Businesses Get Started 15-3

Initial Funding of the Firm 15-3

15.2 Venture Capital 15-4

The Venture Capital Industry 15-4

Why Venture Capital Funding Is Different 15-4

The Venture Capital Funding Cycle 15-5

Venture Capitalists Provide More Than Financing 15-8

The Cost of Venture Capital Funding 15-9

15.3 Initial Public Offering 15-9

Advantages and Disadvantages of Going Public 15-10

Investment Banking Services 15-11

Origination 15-11

Underwriting 15-12

Distribution 15-13

The Proceeds 15-13

15.4 IPO Pricing and Cost 15-15

The Underpricing Debate 15-15

IPOs Are Consistently Underpriced 15-15

The Cost of an IPO 15-16

15.5 General Cash Offer by a Public Company 15-18

Competitive versus Negotiated Sale 15-19

The Cost of a General Cash Offer 15-21

15.6 Private Markets and Bank Loans 15-22

Private versus Public Markets 15-22

Private Placements 15-22

Private Equity Firms 15-23

Private Investments in Public Equity 15-24

Commercial Bank Lending 15-25

Concluding Comments on Funding the Firm 15-27

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Ethics Case: Profiting from Death: “Janitor’s Insurance” 15-31

16 Capital Structure Policy 16-1

16.1 Capital Structure and Firm Value 16-2

The Optimal Capital Structure 16-2

The Modigliani and Miller Propositions 16-3

16.2 The Benefits and Costs of Using Debt 16-11

The Benefits of Debt 16-11

The Costs of Debt 16-18

16.3 Two Theories of Capital Structure 16-24

The Trade-Off Theory 16-24

The Pecking Order Theory 16-24

The Empirical Evidence 16-25

16.4 Practical Considerations in Choosing a Capital Structure 16-26

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Appendix: Leasing 16-33

Two Types of Leases 16-33

Motivations for Leasing 16-34

Conflicts between Lessees and Lessors 16-37

Evaluating a Leasing Opportunity 16-39

Summary of Learning Objective / Summary of Key Equations / Self-Study Problem / Solutions to Self-Study Problem / Discussion Questions / Questions and Problems

17 Dividends, Stock Repurchases, and Payout Policy 17-1

17.1 Dividends 17-2

Types of Dividends 17-3

The Dividend Payment Process 17-4

17.2 Stock Repurchases 17-7

How Stock Repurchases Differ from Dividends 17-8

How Stock Is Repurchased 17-9

17.3 Dividends and Firm Value 17-10

Benefits and Costs of Dividends 17-11

Stock Price Reactions to Dividend Announcements 17-13

Dividends versus Stock Repurchases 17-14

17.4 Stock Dividends and Stock Splits 17-16

Stock Dividends 17-17

Stock Splits 17-17

Reasons for Stock Dividends and Splits 17-18

17.5 Setting a Dividend Payout 17-19

What Managers Tell Us 17-19

Practical Considerations in Setting a Dividend Payout 17-19

Summary of Learning Objectives / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems / Sample Test Problems

18 Business Formation, Growth, and Valuation 18-1

18.1 Starting a Business 18-2

Making the Decision to Proceed 18-3

Choosing the Right Organizational Form 18-3

Financial Considerations 18-5

18.2 The Role of the Business Plan 18-10

Why Business Plans Are Important 18-10

The Key Elements of a Business Plan 18-10

18.3 Valuing a Business 18-11

Fundamental Business Valuation Principles 18-12

Business Valuation Approaches 18-13

18.4 Important Issues in Valuation 18-26

Public versus Private Companies 18-26

Young (Rapidly Growing) versus Mature Companies 18-27

Controlling Interest versus Minority Interest 18-28

Key People 18-28

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

19 Financial Planning and Managing Growth 19-1

19.1 Financial Planning 19-2

The Planning Documents 19-2

Concluding Comments 19-5

19.2 Financial Planning Models 19-5

The Sales Forecast 19-5

Building a Financial Planning Model 19-6

A Simple Planning Model 19-7

19.3 A Better Financial Planning Model 19-11

The Blackwell Sales Company 19-11

The Income Statement 19-12

The Balance Sheet 19-12

The Preliminary Pro Forma Balance Sheet 19-15

The Final Pro Forma Balance Sheet 19-17

19.4 Beyond the Basic Planning Models 19-18

Improving Financial Planning Models 19-18

19.5 Managing and Financing Growth 19-20

External Funding Needed 19-21

A Graphical View of Growth 19-23

The Sustainable Growth Rate 19-25

Growth Rates and Profits 19-27

Growth as a Planning Goal 19-27

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

20 Options and Corporate Finance 20-1

20.1 Financial Options 20-2

Call Options 20-2

Put Options 20-4

American, European, and Bermudan Options 20-5

More on the Shapes of Option Payoff Functions 20-5

20.2 Option Valuation 20-6

Limits on Option Values 20-6

Variables That Affect Option Values 20-8

The Binomial Option Pricing Model 20-9

Put-Call Parity 20-12

Valuing Options Associated with the Financial Securities That Firms Issue 20-13

20.3 Real Options 20-15

Options to Defer Investment 20-15

Options to Make Follow-On Investments 20-16

Options to Change Operations 20-17

Options to Abandon Projects 20-17

Concluding Comments on NPV Analysis and Real Options 20-18

20.4 Agency Costs 20-19

Agency Costs of Debt 20-19

Agency Costs of Equity 20-21

20.5 Options and Risk Management 20-22

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

21 International Financial Management 21-1

21.1 Introduction to International Financial Management 21-2

Globalization of the World Economy 21-3

The Rise of Multinational Corporations 21-3

Factors Affecting International Financial Management 21-3

Goals of International Financial Management 21-6

Basic Principles Remain the Same 21-6

21.2 Foreign Exchange Markets 21-7

Market Structure and Major Participants 21-8

Foreign Exchange Rates 21-8

The Equilibrium Exchange Rate 21-10

Foreign Currency Quotations 21-11

21.3 International Capital Budgeting 21-17

Determining Cash Flows 21-17

Exchange Rate Risk 21-17

Country Risk 21-18

The Barcelona Example 21-18

21.4 Global Money and Capital Markets 21-21

The Emergence of the Euromarkets 21-21

The Eurocurrency Market 21-22

The Eurocredit Market 21-22

International Bond Markets 21-22

21.5 International Banking 21-24

Risks Involved in International Bank Lending 21-25

Eurocredit Bank Loans 21-26

Summary of Learning Objectives / Summary of Key Equations / Self-Study Problems / Solutions to Self-Study Problems / Discussion Questions / Questions and Problems /
Sample Test Problems

Appendix A Future Value and Present Value Tables A-1

Appendix B Solutions to Odd Problems B-1

Glossary / Subject Index / Company Index