Financial Management and Policy

by Van Horne, James C.

• ISBN13: 9780130326577
• ISBN10: 0130326577
• Edition: 12th
• Format: Paperback
• Copyright: 2001-03-22
• Publisher: Pearson

Summary

Highly respected for its effective integration of financial theory and practice, this classic book explores the rapidly evolving and exciting theory of finance as it relates to a corporation's investment in assets, financing, and dividends, explains the ways in which analytical techniques are brought to bear on financial decision making, and supplies the institutional material necessary for a solid understanding of the environment in which financial decisions are made.New cases are added, highlighting for readers major issues in financial analysis, valuation, and financing. Extensively revised coverage of relevant topics throughout provides new and updated information on topics such as efficient markets, share repurchase, empirical evidence, electronic funds transfers, loan pricing, private placements, tax treatment of preferred-stock dividends and tax-deductible preferred stock, exotic securities used in corporate finance, and many others. Financial analysis and analytical techniques are discussed in conjunction, applying these topics as they relate to financial decision making with an emphasis on formulating alternatives, analyzing them, and reaching a decision.An excellent resource for professionals in positions such as treasurer, controller, banker, investment banker, investment manager, or chief financial officer.

Table of Contents

PART I FOUNDATIONS OF FINANCE	1	(128)
Vignette: Problems at Gillette	1	(2)
Goals and Functions of Finance	3	(8)
Concepts in Valuation	11	(38)
Market Risk and Returns	49	(36)
Multivariable and Factor Valuation	85	(18)
Option Valuation	103	(26)
PART II INVESTMENT IN ASSETS AND REQUIRED RETURNS	129	(120)
Case: Fazio Pump Corporation	129	(4)
Principles of Capital Investment	133	(32)
Risk and Real Options in Capital Budgeting	165	(34)
Creating Value through Required Returns	199	(50)
Case: National Foods Corporation	241	(8)
PART III FINANCING AND DIVIDEND POLICIES	249	(94)
Case: Restructuring the Capital Structure at Marriott	249	(4)
Theory of Capital Structure	253	(36)
Making Capital Structure Decisions	289	(20)
Dividend and Share Repurchase: Theory and Practice	309	(34)
PART IV TOOLS OF FINANCIAL ANALYSIS AND CONTROL	343	(78)
Case: Morley Industries, Inc.	343	(6)
Financial Ratio Analysis	349	(38)
Case: Financial Ratios and Industries	383	(4)
Financial Planning	387	(34)
PART V LIQUIDITY AND WORKING CAPITAL MANAGEMENT	421	(100)
Case: Caceres Semilla S.A. de C.V.	421	(8)
Liquidity, Cash, and Marketable Securities	429	(20)
Management of Accounts Receivable and Inventories	449	(34)
Liability Management and Short/Medium-Term Financing	483	(38)
Part VI CAPITAL MARKET FINANCING AND RISK MANAGEMENT	521	(152)
Case: Dougall & Gilligan Global Agency	521	(8)
Foundations for Longer-Term Financing	529	(14)
Lease Financing	543	(22)
Issuing Securities	565	(24)
Fixed-Income Financing and Pension Liability	589	(26)
Hybrid Financing through Equity-Linked Securities	615	(30)
Managing Financial Risk	645	(28)
PART VII EXPANSION AND CONTRACTION	673	(114)
Case: Rayovac Corporation	673	(14)
Mergers and the Market for Corporate Control	687	(32)
Corporate and Distress Restructuring	719	(28)
International Financial Management	747	(40)
Appendix: Present-Value Tables and Normal Probability Distribution Table	787