财务管理分析 英文版 第5版PDF电子书下载

PARTⅠ 3

PARTⅠ 3

Chapter 1 3

Interpreting Financial Statements 3

The Cash Flow Cycle 3

ASSESSING THE FINANCIAL HEALTH OF THE FIRM 3

ASSESSING THE FINANCIAL HEALTH OF THE FIRM 3

1 Interpreting Financial Statements 3

The Balance Sheet 6

Current Assets and Liabilities 7

Shareholders'Equity 7

The Income Statement 9

Cash Budgets 10

Measured Earnings 10

Sources and Uses Statements 14

The Two-Finger Approach 16

The Cash Flow Statement 16

Financial Statements and the Value Problem 21

Market Value versus Book Value 21

Economic Income versus Accounting Income 24

Inflation and Company Profits 28

Appendix:Inflation and the Assessment of Company Performance 28

Inflation Accounting 31

Inflation and Company Balance Sheets 31

Chapter Summary 32

Chapter Problems 33

Additional Reading 33

The Levers of Financial Performance 37

Evaluating Financial Performance 37

Chapter2 37

2 Evaluating Financial Performance 37

The Three Determinants of ROE 38

Return on Equity 38

The Profit Margin 40

Asset Turnover 42

Financial Leverage 46

Is ROE a Reliable Financial Yardstick? 52

The Risk Problem 53

The Timing Problem 53

The Value Problem 55

ROE or Market Price? 57

Ratio Analysis 58

Using Ratios Effectively 61

Ratio Analysis of Analog Devices,Inc. 62

Appendix:International Differences in Financial Structure 75

Percentage Balance Sheets 76

Comparisons Among Large,Publicly Traded Companies 78

International Accounting Differences 80

Chapter Summary 82

Additional Reading and Recommended Web Sites 83

Chapter Problems 84

Chapter 3 91

Pro Forma Statements 91

Financial Forecasting 91

PARTⅡ 91

PLANNING FUTURE FINANCIAL PERFORMANCE 91

PARTⅡ 91

3 Financial Forecasting 91

PLANNING FUTURE FINANCIAL PERFORMANCE 91

Percent-of-Sales Forecasting 92

Pro Forma Statements and Financial Planning 98

Sensitivity Analysis 100

Scenario Analysis 100

Simulation 101

Interest Expense 102

Seasonality 103

Forecasting with Computer Spreadsheets 104

Cash Flow Forecasts 106

The Techniques Compared 108

Planning in Large Companies 111

Chapter Summary 112

Additional Reading 113

Chapter Problems 114

4 Managing Growth 119

Managing Growth 119

Chapter 4 119

Sustainable Growth 120

The Sustainable Growth Equation 121

Balanced Growth 124

Too Much Growth 124

Analog Devices'Sustainable Growth Rate 126

"Wgat If"Questions 127

What to do When Actual Growth Exceeds Sustainable Growth 128

Sell New Equity 129

Increase Leverage 134

Reduce the Payout Ratio 134

Profitable Pruning 134

Sourcing 135

Pricing 136

Is Merger the Answer? 136

Too Little Growth 136

What to do When Sustainable Growth Exceeds Actual Growth 138

Ignore the Problem 139

Return the Money to Shareholders 139

Buy Growth 140

Sustainable Growth and Inflation 141

Sustainable Growth and Pro Forma Forecasts 142

Chapter Summary 143

Chapter Problems 144

Additional Reading 144

PARTⅢ 149

FINANCING OPERATIONS 149

Chapter 5 149

Financial Instruments and Markets 149

5 Financial Instruments and Markets 149

FINANCING OPERATIONS 149

PARTⅢ 149

Financial Instruments 150

Bonds 151

Common Stock 156

Preferred Stock 161

Financial Markets 163

Private Placement or Public Issue? 163

Exchanges and Over-the-Counter Markets 165

International Financial Markets 165

Investment Banking 168

Issue Costs 170

Regulatory Changes 171

Efficient Markets 172

What Is an Efficient Market? 173

Implications of Efficiency 174

Forward Markets 178

Appendix:Using Financial Markets to Manage Corporate Risks 178

Hedging in Money and Capital Markets 183

Limitations of Financial Market Hedging 185

Chapter Summary 187

Additional Reading and Recommended Web Sites 188

Chapter Problems 188

6 The Financing Decision 191

Chapter 6 191

The Financing Decision 191

Financial Leverage 192

Techniques for Evaluating Financing Alternatives 195

Range of Earnings Chart 196

Coverage Ratios 201

Selecting the Appropriate Financing Instrument 203

Financial Flexibility 204

Market Signaling 205

The Financing Decision and Sustainable Growth 208

FRICTO 212

Selecting a Maturity Structure 213

Inflation and Financing Strategy 214

Appendix:The Financing Decision and Firm Value 215

No Taxes or Bankruptcy 215

Corporate Taxes but Still No Bankruptcy 218

Taxes and Bankruptcy 220

Concluding Comments 223

Chapter Summary 225

Additional Reading 226

Chapter Problems 226

PARTⅣ 231

EVALUATING INVESTMENT OPPORTUNITIES 231

7 Discounted Cash Flow Techniques 231

EVALUATING INVESTMENT OPPORTUNITIES 231

Chapter 7 231

Discounted Cash Flow Techniques 231

PARTⅣ 231

Figures of Merit 232

The Payback Period and the Accounting Rate of Return 234

The Time Value of Money 235

Equivalence 238

The Net Present Value 239

The Benefit-Cost Ratio 241

The Internal Rate of Return 241

Calculating NPVs,IRRs,and BCRs with a Computer Spreadsheet 245

Bond Valuation:An Example of NPV and IRR Calculations 247

Mutually Exclusive Alternatives and Capital Rationing 248

Determining the Relevant Cash Flows 250

Depreciation 251

Working Capital and Spontaneous Sources 253

Allocated Costs 254

Sunk Costs 254

Excess Capacity 255

Financing Costs 256

Appendix:Mutually Exclusive Alternatives and Capital Rationing 258

What Happened to the Other $578,000? 259

Unequal Lives 260

Capital Rationing 261

The Problem of Future Opportunities 263

A Decision Tree 263

Chapter Summary 264

Additional Reading 265

Chapter Problems 266

Chapter 8 269

Risk Analysis in Investment Decisions 269

8 Risk Analysis in Investment Decisions 269

Risk Defined 271

Estimating Investment Risk 273

Three Techniques for Estimating Investment Risk 274

Including Risk in Investment Evaluation 275

Risk-Adjusted Discount Rates 275

The Cost of Capital 277

The Cost of Capital Defined 277

Analog Devices'Cost of Capital 279

The Cost of Capital in Investment Appraisal 286

Multiple Hurdle Rates 288

Four Pitfalls in the Use of Discounted Cash Flow Techniques 289

The Entity Perspective versus the Equity Perspective 290

Inflation 292

Real Options 293

Excessive Risk Adjustment 296

Economic Value Added 298

EVA and Investment Analysis 299

EVA's Apeal 300

A Cautionary Note 302

Appendix:Diversification and B-Risk 303

Diversification 305

Measuring Beta 308

Using Beta in Investment Evaluation 309

Beta Risk and Conglomerate Diversification 309

Chapter Summary 310

Additional Reading 311

Chapter Problems 312

9 Business Valuation and Corporate Restructuring 315

Business Valuation and Corporate Restructuring 315

Chapter 9 315

Valuing a Business 317

Assets or Equity? 317

Dead or Alive? 318

Minority Interest or Control? 320

Equity Valuation 321

Firm Valuation 321

Discounted Cash Flow Valuation 321

Free Cash Flow 322

The Terminal Value 323

A Numerical Example 326

Problems with Present Value Approaches to Valuation 328

Valuation Based on Comparable Trades 329

Lack of Marketability 335

The Market for Control 335

The Premium for Control 336

Financial Reasons for Restructuring 339

The Empirical Evidence 345

The AT T-McCaw Merger 347

Chapter Summary 349

Additional Reading 350

Chapter Problems 351

APPENDLX A:PRESENT VALUE OF$1 IN YEAN N,DISCOUNTED AT DISCOUNT RATE K 355

APPENDIX A 355

APPENDIX B 357

APPENDLX B:PRESENT VALUE OF AN ANNUITY OF$1 FOR N YEARS,DISCOUNTED AT RATE K 357

GLOSSARY 359

GLOSSARY 359

SUGGESTED ANSWERS TO END-OF-CHAPTER PROBLEMS 371

SUGGESTED ANSWERS TO END-OF-CHAPTER PROBLEMS 371

INDEX 399

INDEX 399