财金之旅 影印版 -财务管理：原理与实务PDF电子书下载

PART ONE:THE WORLD OF FINANCE 1

Glossary 1

Index 1

Chapter1:Finance and the Firm 1

The Field of Finance 2

Chapter1:Finance and the Firm1 2

PART ONE THE WORLD OF FINANCE 2

Contents 2

The Role of the Financial Manager 3

Financial Management 3

Finance Career Paths 3

The Basic Financial Goal of the Firm 5

In Search of Value 6

Legal and Ethical Challenges in Financial Management 9

Finance at Work: Melanie Rosen.Electronic Media.The New York Times 9

Agency Issues 10

The Interests of Society as a Whole 11

The Interests of Other Groups 11

The Proprietorship 12

Forms of Business Organization 12

The Partnership 13

What s Next 14

The Corporation 14

Summary 15

Self.Test 16

Review Questions 16

Producing Pro Forma Financial Statements 17

Answers to Self-Test 17

Build Your Communication Skills 17

Chapter2:Financial Markets and Interest Rates 18

Chapter 2: Financial Markets and Interest Rates 18

The Financial System 19

Securities 20

Financial Intermediaries 20

Financial Markets 21

The Primary Market 21

The Secondary Market 21

The Money Market 22

The Capital Market 22

Security Exchanges 22

The Over-the-Counter(OTC)Market 22

Market Efficiency 23

Securities in the Financial Marketplace 23

Securitics in the Moncy Market 23

Ethical Connections: The Dog Ate My Investment 24

Securities in the Capital Market 25

Financial Management and You: How to Buy Treasury Securities without Using a Broker 28

Interest 29

Determinants of Interest Rates 29

The Yield Curve 32

What s Next 33

Summary 33

Self-Test 35

Review Questions 35

Build Your Communication Skills 35

Problems 36

Answers to Self-Test 36

Chapter 3: Financial Institutions 38

Chapter3:Financial Institutions 38

Financial Intermediation 39

Denomination Matching 40

Absorbing Credit Risk 41

Commercial Banks 41

Bank Regulation 42

Commercial Bank Operations 42

Ethical Connections: How Ethical Is Your Financial Institution? 44

The Federal Reserve System 44

Organization of the Fed 45

Controlling the Money Supply 46

Savings and Loan Associations 47

Legislation Affecting S Ls 47

The Discount Window 47

Regulation of S Ls 48

Mutual Companies versus Stockholder Owned Companies 48

The Problem of Matching Loan and Deposit Maturities 48

S Ls Real Assets 49

Gredit Unions 50

The Common Bond Requirement 50

Members as Shareholders 50

Credit Unions Compared to Banks 50

Credit Union Regulation 50

Finance Companies,Insurance Companies,and Pension Funds 51

Types of Finance Companies 51

Insurance Companies 52

Financial Management and You:The Social Security Sytem 53

What s Next 54

Summary 54

Build Your Communication Skills 55

Review Questions 55

Self-Test 55

Answer to Self-Test 56

PART TWO ESSENTIAL CONCEPTS IN FINANCE 57

Chapter 4:Review of Accounting 57

Chapter4:Review of Accounting 57

PART TWO:ESSENTIAL CONCEPTS IN FINANCE 57

Reviw of Accounting 58

Fundamentals 58

Basic Accounting Financial Statements 59

The Income Statement 59

Ethical Connections:Box Office Hits—Who Profits? 62

The Balance Sheet 63

The Statement of Cash Flows 66

Depreciation 69

Calculating the Amount of Depreciation Expense 69

Income Taxes 71

Financial Management and You: Your Personal Tax Rates 72

Whats Next 73

Summary 73

Self-Test 73

Review Questions 74

Build Your Communication Skills 74

Problems 75

Answers to Self-Test 78

Chapter5:Analysis of Financial Statements 79

Chapter5:Analysis of Financial Statements 79

Assessing Financial Health 80

Financial Ratios 81

Misleading Numbers 81

The Basic Financial Ratios 83

Caculating the Ratios 83

Finance at Work: Lee Anne Schuster,Kitchell Contractors,Marketing 94

Trend Analysis and Industry Comparisons 94

Trend Analysis 95

Industry Comparisons 96

Summary Analysis: Trend and Industry Comparisons Together 96

Locating Information about Financial Ratios 98

What s Next 100

Summary 100

Equations Introduced in This Chapter 101

Self-Test 102

Review Questions 102

Build Your Communication Skills 102

Problems 103

Answers to Self-Test 110

Chapter:6: Forecasting for Financial Planning 111

Chapter6:Forecasting for Financial Planning 111

Why Forecasting Is Important 112

Forecasting Approaches 113

Why Forecasts Are Sometimes Wrong 114

Forecasting Sales 115

Forecasting Finaancial Statements 116

Budgets 117

Finance at Work: Keith Ender,Customer Service Representative,James River Paper Company 126

Analyzing Forecasts for Financial Planning 127

Whats Next 128

Summary 128

Self-Test 129

Review Questions 129

Build Your Communication Skills 129

Problems 129

Answers to Self-Text 135

Chapter7: Risk and Return 136

Chapter7:Risk and Return 136

Risk 137

Risk Aversion 137

The Risk-Return Relationship 137

Measuring Risk 138

Using Standard Deviation to Measure Risk 138

Using the Coefficient of Variation to Measure Risk 142

The Types of Risks Firms Encounter 144

Business Risk 144

Financial Risk 146

Portfolio Risk 148

Dealing With Risk 154

Risk-Reduction Methods 154

Compensating for the Presence of Risk 155

Financial Management and You: Mutual Funds and Risk 155

What s Next 158

Summary 158

Equations Introduced in This Chapter 159

Self-Test 160

Review Questions 161

Build Your Communication Skills 161

Problems 161

Answers to Self-Test 165

Chapter8: The Time Value of Money 167

Chapter8:The Time Value of Money 167

Why Money Hals Time Value 168

Measuring the Time Value of Money 168

The Future Value of a Single Amount 169

The Sensitivity of Future Values to Changes i n Interest Rates of the Number of Compounding Periods 172

The Present Value of a Single Amount 172

The Sensitivity of Present Values to Changes in k and n 175

Working with Annuities 176

Future Value of an Ordinary Annuity 176

The Present Value of an Ordinary Annuity 179

Ethical Connections: When a Million Isn t a Million.Taking a Chance on the Time Value of Money 181

Future and Present Values of Annuities Due 181

Perpetuities 183

Present Value of an Investment with Uneven Cash Flows 183

Special Time Value of Money Problems 185

Finding the Interest Rate 185

Finding the Number of Periods 188

Solving for the Payment 189

Compounding More than Once per Year 191

What s Next 194

Equations Introduced in This Chapter 195

Summary 195

Self-Test 197

Review Questions 198

Build Your Communication Skills 198

Problems 198

Answers to Self-Test 202

Chapter9: Bond and Stock Valuation 203

Chapter9:Bond and Stock Valuation 203

The Importance of Bond and Stock Valuation 204

A General Valuation Model 204

Bond Valuation 205

Semi-Annual Coupon Interest Payments 207

The Yield to Maturity of a Bond 208

The Relationship Between Bond YTM and Price 210

Finding the Present Value of Preferred Stock Dividends 212

Preferred Stock Valuation 212

The Yield on Preferred Stock 213

Common Stock Valuation 214

Common Stock Going Concern Valuation Models 214

Balance Sheet Valuation Approaches 217

Deciding Which Stock Valuation Approach to Use 218

The Yield on Common Stock 218

What s Next 218

Summary 219

Equations Introduced in This Chapter 220

Self-Test 221

Review Questions 222

Build Your Communication Skills 222

Problems 222

Answers to Self-Test 226

Appendix 9A: Common Stock Valuation: Supernormal Growth 228

PART THREE LONG-TERM FINANCIAL MANAGEMENT DECISIONS 230

Chapter10: Capital Budgeting Decision Methods 230

Chapter10:Capital Budgeting Decision Methods 230

PART THREE:LONG-TERM FINANCIAL MANAGEMENT DECISIONS 230

The Capital Budgeting Process 231

Decision Practices 231

Types of Projects 232

Capital Budgeting Cash Flows 232

Stages in the Capital Budgeting Proess 232

Capital Budgeting Decision Methods 233

The Net Present Value(NPV)Method 234

The Intermal Rate of Return(IRR)Method 240

Problems with the IRR Method 243

Conflicting Rankings between the NPV and IRR Methods 243

Capital Rationing 244

Finance at Work: Jim Bruner,Former Maricopa County Supervisor,State of Arizona 246

Risk and Capital Budgeing 247

Measuring Risk in Capital Budgeting 248

Adjusting for Risk 249

What s Next 250

Summary 250

Equations Introduced in This Chapter 251

Review Questions 252

Self-Test 252

Build Your Communication Skills 253

Problems 253

Answers to Self-Test 260

Appendix 10A: Wrinkles in Capital Budgeting 262

Non-Simple Projects 262

Multiple IRRs 263

Mutually Exclusive Projects with Unequal Project Lives 264

Comparing Projects with Unequal Lives 265

Equations Introduced in This Appendix 267

Chapter11: Estimating Incremental Cash Flows 268

Chapter11:Estimating Incremental Cash Flows 268

Incremental Cash Flows 269

Types of Incremental Cash Flows 270

Initial Investment Cash Flows 270

Operating Cash Flows 271

Cash Flows at the End of a Project s Life 274

Incremental Cash Flows of an Expansion Project 274

Financial Management and You: The Incremental Costs of Studying Abroad 275

An Asset Replacement Decision 280

Financing Cash Flows 281

Self-Test 282

Summary 282

Whats Next 282

Build Your Communication Skills 283

Review Questions 283

Problems 284

Answers to Self-Test 287

Chapter12:The Cost of Capital 288

Chapter 12: The Cost of Capital 288

The Cost of Capital 289

Sources of Capital 290

The Cost of Debt 290

The Cost of Preferred and Common Stock Funds 292

The Weighted Average Cost of Capital(WACC) 297

The Marginal Cost of Capital(MCC) 299

Finance at Work: Interview with Fred Higgins:Mint Mart Foods.Inc.CEO 300

The Firm s MCC Schedule 300

The MCC Schedule and Capital Budgeting Decisions 304

The Optimal Capital Budget 306

The Importance of MCC to Capital Budgeting Dccisions 307

What s Next 307

Summary 307

Equations Introduced in This Chapter 308

Self-Test 309

Review Questions 310

Build Your Communication Skills 310

Problems 310

Answers to Self-Test 315

Chapter13:Capital Structure Basics 316

Chapter 13: Capital Structure Basics 316

Breakeven Analysis and Leverage 317

Constructing a Sales Breakeven Chart 317

Applying Breakeven Analysis 320

Leverage 323

Operating Leverage 323

Financial Leverage 326

Combined Leverage 328

LBOs 329

Ethical Connections: Ei Tu,Wilson? 330

Capital Structure Theory 331

Tax Deductibility of Interest 331

Modigliani and Miller 331

Toward an Optimal Capital Structure 332

What s Next 334

Summary 334

Equations Introduced in This Chapter 335

Review Questions 337

Build Your Communication Skills 337

Self-Test 337

Problems 338

Answers to Self-Test 341

Chapter14:Corporate Bonds,Preferred Stock,and Leasing 343

Chapter14: Corporate Bonds,Preferred Stock,and Leasing 343

Bond Basics 344

Features of Bond Indentures 344

Severity 345

Plans for Paying off the Bond Issue 346

Call Provisions 346

Restrictive Covenants 348

The Independent Trustee of the Bond Issue 349

Types of Bonds 349

Secured Bonds 349

Convertible Bonds 351

Variable Rate Bonds 352

Putable Bonds 354

Junk Bonds 354

International Bonds 354

Ethical Connections: Repealing a Subsidy Generates Trash Talk 355

Super Long-Term Bonds 355

Preferred Srock Dividends 356

Preferred Srock Investors 356

Preferred Srock 356

Leasing 357

Genuine Leases versus Fakes 357

Operating and Financial(Capital )Leases 358

What s Next 359

Summary 359

Self-Test 360

Equations Introduced in This Chapter 360

Review Questions 361

Build Your Communication Skills 361

Problems 361

Answers to Self-Test 363

Appendix 14A: Bond Refunding 363

A Sample Bond Refunding Problem 364

Chapter15:Common Stock 367

Chapter15: Common Stock 367

The Characteristies of Common Stock 368

Stock Issued by Private Corporations 370

Stock Issued by Publicly Traded Corporations 370

Finance at Work: Chris Heller:Corporare Communications Consultant 371

Institutional Ownership of Common Stock 372

Voting Rights of Common Stockholders 372

Proxies 372

Board of Directors Elcctions 373

The Pros and Cons of Equity Financing 375

Disadvantages of Equity Financing 375

Advantages of Equity Financing 376

Issuing Common Stock 376

The Function of Investment Bankers 377

Pricing New Issues of Stock 379

Rights and Warrants 380

Preemptive Rights 380

Warrants 383

What s Next 385

Summary 385

Equations Introduced in This Chapter 386

Self-Test 387

Review Questions 387

Build Your Communication Skills 387

Problems 387

Answers to Self-Test 389

Chapter16:Dividend Policy 391

Chapter 16: Dividend Policy 391

Dividends 392

Why a Dividend Policy Is Necessary 392

Factors Affecting Dividend Policy 393

Need For Funds 393

Management Expectations and Dividend Policy 393

Stockholders Preferences 393

Restrictions on Dividend Payments 394

Cash versus Earnings 394

Leading Dividend Theories 396

The Residual Theory of Dividends 396

The Clientele Dividend Theory 397

The Signaling Dividend Theory 397

Modigliani and Miller s Dividend Theory 398

The Mechanies of Paying Dividends 398

The Bird-in-the-Hand Theory 398

Financial Management and You: Dividend Reinvestment Records Can Avoid Tax Headaches 400

Dividend Reinvestment Plans 400

Alternatives to Cash Dividends 400

Stock Dividends and Stock Splits 400

What s Next 405

Summary 405

Review Questions 406

Build Your Communication Skills 406

Equations Introduced in This Chapter 406

Self-Test 406

Problems 407

Answers to Sefl-Test 409

PART FOUR SHORT-TERM FINANCIAL MANAGEMENT DECISIONS 410

Chapter 17: Working Capital Policy 410

PART FOUR:SHORT-TERM FINANCIAL MANAGEMENT DECISIONS 410

Chapter17:Working Capital Policy 410

Managing Working Capital 411

Why Businesses Accumulate Working Capital 412

Fluctuating Current Assets 412

Permanent and Temporary Current Assets 413

Estabilsbing the Optimal Level of Current Assets 414

Liquidity versus Profitability 414

Managing Current Liabilities:Risk and Return 415

Three Working Capital Financing Approaches 415

The Aggressive Approach 416

The Conservative Approach 417

The Moderate Approach 418

Working Capital Financing and Financial Ratios 418

What s Next 419

Finance at Work: Interview with Michaet Coleman.Vice President of Tek Soft 420

Summary 421

Self-Test 421

Build Your Communication Skills 422

Review Questions 422

Problems 423

Answers to Self-Test 426

Chapter18:Managing Cash 428

Chapter 18: Managing Cash 428

Cash Management Concepts 429

Determining the Optimal Cash Balance 429

The Minimum Cash Balance 430

The Maximum Cash Balance 431

Determining the Optimal Cash Balance 432

Finance at Work: Karen Noble,Professional Glofer 434

Forecasting Cash Needs 435

Developing a Cash Budget 436

Managing the Cash Flowing in and out of the Firm 440

Increasing Cash Inflows 440

Decreasing Cash Outflows 443

Speeding Up Cash Iuflows 443

Slowing Down Cash Outflows 444

What s Next 445

Summary 445

Review Questions 446

Self-Test 446

Build Your Communication Skills 446

Equations Introduced in This Chapter 446

Problems 447

Answer to Self-Test 449

Chapter 19: Accounts Receivable and Inventory 451

Chapter19:Accounts Receivable and Inventory 451

Why Firms Accumulate Accounts Receivable and Inventory 453

How Accounts Receivable and Inventory Affect Profitability and Liquidity 454

Findig Optimal Levels of Accounts Receivable and Inventory 455

The Optimal Level of Accounts Receivable 455

The Optimal Level of Inventory 460

The ABC Inventory Classification System 466

Just-in-Time Inventory Control(JIT) 466

Inventory Management Approaches 466

Making Credit Decisions 467

Collection Policies to Handle Bad Debts 468

Finance at Work: Joann K.Jones,CEO of Capital Electric Supply 470

What s Next 471

Summary 471

Equations Introduced in This Chapter 472

Self-Test 472

Review Questions 473

Bulid Your Communication Skills 473

Problems 474

Answers to Self-Test 478

Chapter 20: Short-Term Financing 482

Chapter20:Short-Term Financing 482

The Need for Short-Term Financing 484

Short-Term Financing versus Long-Term Financing 484

Short-Term Financing Alternatives 485

Short-Term Loans from Banks and Other Institutions 485

Trabe Credit 486

Commercial Paper 488

How Loan Terms Affect the Effective Interest Rate of a Loan 489

The Effective Interest Rate Discount Loans 490

Compensating Balances 491

Loan Maturities Shorter than One Year 492

A Comprehensive Example 493

Computing the Amount to Borrow 494

Collateral for Short-Term Loans 495

Accounts Receivable as Collateral 495

Inventory as Collateral 495

Financial Management and You: Easy Com,Easy Go:The Cost of Credit 496

Summary 497

What s Next 497

Equations Introduced in This Chapter 498

Self-Test 499

Review Questions 500

Build Your Communications Skills 500

Problems 500

Answers to Self-Test 501

Chapter21:International Finance 503

PART FIVE:FINANCE IN THE GLOBAL ECONOMY 503

Chapter 21: International Finance 503

Financial Advantages of Foreign Operations 504

Multinational Corporations 504

PART FIVE FINANCE IN THE GLOBAL ECONOMY 504

Ethical Issues Facing Multinational Corporations 505

Comparative Advantage 506

Exchange Rates and Their Effects 507

Fluctuating Exchange Rates Cross Rates 508

Exchange Ratc Effects on MNCS 510

Exchange Ratc Effects on Foreigri Stock and Bond Investments 510

Managing Risk 511

Hedging 511

Diversification Benefits of Foreign Investments 511

American Depository Receipts 512

Finance At Work: Interview with Don Burton,International Import-Export Institure 513

Exchange Rate Theories 514

Purchasing Power Parity Theory 514

International Fisher Effect 515

Interest Rate Parity Theory 515

Other Factors Affecting Exchange Rates 515

Government Intervention in Foreign Exchange Markets 516

Cultural Risk 517

Political Risk 517

Political and Cultural Risks Facing MNCs 517

International Trade Agreements 518

NAFTA 518

GATT 519

European Union 519

Free Trade versus Fair Trade 519

Summary 520

Equations Introduced in This Chaper 521

Self-Test 521

Review Questions 521

Build Your Communication Skills 521

Problems 522

Answers to Self-Test 523