Principles of Managerial Finance (Addison-wesley Series in Finance) (11 HAR/PSC)

Principles of Managerial Finance (Addison-wesley Series in Finance) (11 HAR/PSC)

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  • 商品コード 9780321534644
  • DDC分類 332

Table of Contents

Preface                                            xxxi
To the Student xliii
PART ONE INTRODUCTION TO MANAGERIAL FINANCE 1 (156)
The Role and Environment of Managerial 2 (42)
Finance
Starbucks--Creating New Flavors for 3 (1)
Growth
Finance and Business 4 (5)
What Is Finance? 4 (1)
Major Areas and Opportunities in Finance 4 (1)
Legal Forms of Business Organization 5 (3)
Why Study Managerial Finance? 8 (1)
Review Questions 9 (1)
The Managerial Finance Function 9 (4)
Organization of the Finance Function 10 (1)
Relationship to Economics 10 (1)
Relationship to Accounting 11 (1)
Primary Activities of the Financial 12 (1)
Manager
Review Questions 13 (1)
Goal of the Firm 13 (9)
Maximize Profit? 13 (2)
Maximize Shareholder Wealth 15 (1)
Corporate Governance 16 (1)
The Role of Ethics 17 (2)
In Practice Focus on Ethics: Ethics at 19 (1)
Hewlett-Packard
The Agency Issue 20 (1)
Review Questions 21 (1)
Financial Institutions and Markets 22 (8)
Financial Institutions 22 (1)
Financial Markets 23 (1)
The Relationship Between Institutions 23 (1)
and Markets
The Money Market 24 (1)
The Capital Market 25 (3)
In Practice Focus on Practice: Warren 28 (1)
Buffett---The Oracle of Omaha
Review Questions 29 (1)
Business Taxes 30 (3)
Ordinary Income 30 (3)
Capital Gains 33 (1)
Review Questions 33 (1)
Using This Text 33 (11)
Summary 34 (2)
Self-Test Problem 36 (1)
Warm-Up Exercises 36 (1)
Problems 37 (3)
Chapter 1 Case: Assessing the Goal of 40 (1)
Sports Products, Inc.
Spreadsheet Exercise 41 (1)
Group Exercise 41 (1)
Web Exercise 42 (2)
Financial Statements and Analysis 44 (58)
The Home Depot Inc-Building Strong 45 (1)
Financials
The Stockholders' Report 46 (8)
The Letter to Stockholders 46 (1)
The Four Key Financial Statements 46 (1)
In Practice Focus on Practice: The Son 47 (5)
of Sox
Notes to the Financial Statements 52 (1)
Consolidating International Financial 52 (1)
Statements
In Practice Focus on Ethics: Investors 53 (1)
and Sox Declare War on Accounting
Misdeeds
Review Questions 54 (1)
Using Financial Ratios 54 (4)
Interested Parties 54 (1)
Types of Ratio Comparisons 54 (2)
Cautions About Using Ratio Analysis 56 (1)
Categories of Financial Ratios 57 (1)
Review Questions 58 (1)
Liquidity Ratios 58 (1)
Current Ratio 58 (1)
Quick (Acid-Test) Ratio 59 (1)
Review Question 59 (1)
Activity Ratios 59 (3)
Inventory Turnover 60 (1)
Average Collection Period 60 (1)
Average Payment Period 61 (1)
Total Asset Turnover 62 (1)
Review Question 62 (1)
Debt Ratios 62 (3)
Debt Ratio 64 (1)
Times Interest Earned Ratio 64 (1)
Fixed-Payment Coverage Ratio 65 (1)
Review Questions 65 (1)
Profitability Ratios 65 (4)
Common-Size Income Statements 66 (1)
Gross Profit Margin 67 (1)
Operating Profit Margin 67 (1)
Net Profit Margin 67 (1)
Earnings per Share (EPS) 68 (1)
Return on Total Assets (ROA) 68 (1)
Return on Common Equity (ROE) 69 (1)
Review Questions 69 (1)
Market Ratios 69 (2)
Price/Earnings (P/E) Ratio 69 (1)
Market/Book (M/B) Ratio 70 (1)
Review Question 71 (1)
A Complete Ratio Analysis 71 (31)
Summarizing All Ratios 71 (4)
DuPont System of Analysis 75 (2)
Review Questions 77 (1)
Summary 78 (1)
Self-Test Problems 79 (1)
Warm-Up Exercises 80 (1)
Problems 81 (16)
Chapter 2 Case: Assessing Martin 97 (2)
Manufacturing's Current Financial
Position
Spreadsheet Exercise 99 (2)
Group Exercise 101 (1)
Web Exercise 101 (1)
Cash Flow and Financial Planning page 102 (55)
Best Buy-A Tale of Two Strategies 103 (1)
Analyzing the Firm's Cash Flow 104 (10)
Depreciation 104 (3)
Developing the Statement of Cash Flows 107 (3)
Operating Cash Flow 110 (3)
Free Cash Flow 113 (1)
Review Questions 114 (1)
The Financial Planning Process 114 (2)
Long-Term (Strategic) Financial Plans 115 (1)
Short-Term (Operating) Financial Plans 115 (1)
Review Questions 116 (1)
Cash Planning: Cash Budgets 116 (9)
The Sales Forecast 116 (1)
Preparing the Cash Budget 117 (1)
In Practice Focus on Practice: Cash 118 (4)
Forecasts: Easier Said Than Done
Evaluating the Cash Budget 122 (1)
Coping with Uncertainty in the Cash 123 (1)
Budget
Cash Flow Within the Month 124 (1)
Review Questions 124 (1)
Profit Planning: Pro Forma Statements 125 (2)
Preceding Year's Financial Statements 125 (1)
Sales Forecast 125 (1)
Review Question 125 (2)
Preparing the Pro Forma Income Statement 127 (3)
Considering Types of Costs and Expenses 127 (2)
In Practice Focus on Ethics: Critical 129 (1)
Ethical Lapse at Critical Path
Review Questions 129 (1)
Preparing the Pro Forma Balance Sheet 130 (2)
Review Questions 131 (1)
Evaluation of Pro Forma Statements 132 (25)
Review Questions 132 (1)
Summary 132 (2)
Self-Test Problems 134 (2)
Warm-Up Exercises 136 (1)
Problems 137 (10)
Chapter 3 Case: Preparing Martin 147 (1)
Manufacturing's 2007 Pro Forma
Financial Statements
Spreadsheet Exercise 148 (2)
Group Exercise 150 (1)
Web Exercise 150 (2)
Integrative Case 1: Track Software, Inc. 152 (5)
PART TWO IMPORTANT FINANCIAL CONCEPTS 157 (216)
Time Value of Money 158 (66)
Eli Lilly and Company--Riding the 159 (1)
Pipeline
The Role of Time Value in Finance 160 (4)
Future Value Versus Present Value 160 (1)
Computational Tools 161 (3)
Basic Patterns of Cash Flow 164 (1)
Review Questions 164 (1)
Single Amounts 164 (8)
Future Value of a Single Amount 165 (3)
Present Value of a Single Amount 168 (3)
Comparing Present Value and Future Value 171 (1)
Review Questions 172 (1)
Annuities 172 (8)
Types of Annuities 172 (1)
Finding the Future Value of an Ordinary 173 (2)
Annuity
Finding the Present Value of an 175 (2)
Ordinary Annuity
Finding the Future Value of an Annuity 177 (1)
Due
Finding the Present Value of an Annuity 178 (1)
Due
Finding the Present Value of a 179 (1)
Perpetuity
Review Questions 180 (1)
Mixed Streams 180 (4)
Future Value of a Mixed Stream 181 (1)
Present Value of a Mixed Stream 182 (2)
Review Question 184 (1)
Compounding Interest More Frequently Than 184 (7)
Annually
Semiannual Compounding 184 (1)
Quarterly Compounding 185 (1)
A General Equation for Compounding More 186 (1)
Frequently Than Annually
Using Computational Tools for 187 (1)
Compounding More Frequently Than
Annually
Continuous Compounding 188 (1)
Nominal and Effective Annual Rates of 189 (1)
Interest
Review Questions 190 (1)
In Practice Focus on Ethics: How Fair 191 (1)
Is ``Check into Cash''?
Special Applications of Time Value 191 (33)
Determining Deposits Needed to 192 (1)
Accumulate a Future Sum
Loan Amortization 193 (2)
In Practice Focus on Practice: 195 (1)
Refinance When It Is in Your Best
Interest
Finding Interest or Growth Rates 195 (2)
Finding an Unknown Number of Periods 197 (2)
Review Questions 199 (1)
Summary 199 (3)
Self-Test Problems 202 (1)
Warm-Up Exercises 203 (1)
Problems 204 (15)
Chapter 4 Case: Finding Jill Moran's 219 (1)
Retirement Annuity
Spreadsheet Exercise 220 (1)
Group Exercise 221 (1)
Web Exercise 222 (2)
Risk and Return 224 (52)
JP Morgan Chase A Co. and Bank One--Now 225 (1)
One Bank
Risk and Return Fundamentals 226 (5)
Risk Defined 226 (1)
Return Defined 226 (2)
In Practice Focus on Ethics: What About 228 (2)
Moral Risk?
Risk Preferences 230 (1)
Review Questions 231 (1)
Risk of a Single Asset 231 (7)
Risk Assessment 231 (2)
Risk Measurement 233 (4)
Review Questions 237 (1)
Risk of a Portfolio 238 (8)
Portfolio Return and Standard Deviation 238 (1)
Correlation 239 (1)
Diversification 240 (1)
Correlation, Diversification, Risk, and 241 (3)
Return
International Diversification 244 (1)
In Practice Global Focus: An Flavor to 245 (1)
Risk Reduction
Review Questions 245 (1)
Risk and Return: Capital Asset Pricing 246 (30)
Model (CAPM)
Types of Risk 246 (1)
The Model: CAPM 247 (9)
Review Questions 256 (1)
Summary 257 (2)
Self-Test Problems 259 (1)
Warm-Up Exercises 260 (1)
Problems 261 (11)
Chapter 5 Case: Analyzing Risk and 272 (1)
Return on Chargers Products' Investments
Spreadsheet Exercise 273 (1)
Group Exercise 274 (1)
Web Exercise 275 (1)
Interest Rates and Bond Valuation 276 (48)
U.S. Treasury--A Huge Appetite for Money 277 (1)
Interest Rates and Required Returns 278 (9)
Interest Rate Fundamentals 278 (3)
In Practice Focus on Practice: Beauty 281 (1)
Is in the Eye of the I-Bond Holder
Term Structure of Interest Rates 281 (4)
Risk Premiums: Issuer and Issue 285 (2)
Characteristics
Review Questions 287 (1)
Corporate Bonds 287 (9)
Legal Aspects of Corporate Bonds 287 (1)
Cost of Bonds to the Issuer 288 (1)
General Features of a Bond Issue 289 (1)
Interpreting Bond Quotations 290 (1)
Bond Ratings 291 (1)
In Practice Focus on Ethics: Can We 292 (1)
Trust the Bond Raters?
Popular Types of Bonds 293 (1)
International Bond Issues 293 (2)
Review Questions 295 (1)
Valuation Fundamentals 296 (3)
Key Inputs 296 (1)
The Basic Valuation Model 297 (1)
Review Questions 298 (1)
Bond Valuation 299 (25)
Bond Fundamentals 299 (1)
Basic Bond Valuation 299 (2)
Bond Value Behavior 301 (3)
Yield to Maturity (YTM) 304 (2)
Semiannual Interest and Bond Values 306 (2)
Review Questions 308 (1)
Summary 308 (2)
Self-Test Problems 310 (1)
Warm-Up Exercises 311 (1)
Problems 312 (9)
Chapter 6 Case: Evaluating Annie Hegg's 321 (1)
Proposed Investment in Atilier
Industries Bonds
Spreadsheet Exercise 322 (1)
Group Exercise 322 (1)
Web Exercise 323 (1)
Stock Valuation 324 (49)
Domino's Pizza, Inc.--A Slice of the 325 (1)
Company is Now Available to the Public
Differences Between Debt and Equity 326 (1)
Capital
Voice in Management 326 (1)
Claims on Income and Assets 326 (1)
Maturity 327 (1)
Tax Treatment 327 (1)
Review Question 327 (1)
Common and Preferred Stock 327 (12)
Common Stock 327 (4)
Preferred Stock 331 (1)
Issuing Common Stock 332 (5)
Interpreting Stock Quotations 337 (1)
Review Questions 338 (1)
Common Stock Valuation 339 (14)
Market Efficiency 339 (2)
In Practice Focus on Ethics: Do 341 (1)
Investors Now Require a ``Credibility
Premium''?
The Basic Stock Valuation Equation 342 (1)
In Practice Focus on Practice: Showdown 343 (5)
at the EMH Corral
Free Cash Flow Valuation Model 348 (3)
Other Approaches to Common Stock 351 (2)
Valuation
Review Questions 353 (1)
Decision Making and Common Stock Value 353 (20)
Changes in Expected Return 354 (1)
Changes in Risk 354 (1)
Combined Effect 355 (1)
Review Questions 355 (1)
Summary 355 (4)
Self-Test Problems 359 (1)
Warm-Up Exercises 359 (1)
Problems 360 (8)
Chapter 7 Case: Assessing the Impact of 368 (1)
Suarez Manufacturing's Proposed Risky
Investment on Its Stock Value
Spreadsheet Exercise 369 (1)
Group Exercise 369 (1)
Web Exercise 370 (1)
Integrative Case 2: Encore International 371 (2)
PART THREE LONG-TERM INVESTMENT DECISION 373 (122)
Capital Budgeting Cash Flows 374 (42)
FedEx Corp.--Calculating a Terminal's 375 (1)
Value
The Capital Budgeting Decision Process 376 (4)
Motives for Capital Expenditure 376 (1)
Steps in the Process 376 (1)
Basic Terminology 377 (2)
Review Questions 379 (1)
The Relevant Cash Flows 380 (4)
In Practice Focus on Ethics: How 380 (1)
Accurate e Cash Flows?
Major Cash Flow Components 381 (1)
Expansion Versus Replacement Decisions 381 (1)
Sunk Costs and Opportunity Costs 382 (1)
International Capital Budgeting and 383 (1)
Long-Term Investments
Review Questions 383 (1)
In Practice Global Focus: Emerging from 384 (1)
Gangster Capitalism
Finding the Initial Investment 384 (6)
Installed Cost of a New Asset 385 (1)
After-Tax Proceeds from Sale of Old 385 (3)
Asset
Change in Net Working Capital 388 (1)
Calculating the Initial Investment 389 (1)
Review Questions 390 (1)
Finding the Operating Cash Inflows 390 (5)
Interpreting the Term After-Tax 390 (1)
Interpreting the Term Cash Inflows 391 (1)
Interpreting the Term Incremental 392 (3)
Review Questions 395 (1)
Finding the Terminal Cash Flow 395 (2)
Proceeds from Sale of Assets 395 (1)
Taxes on Sale of Assets 395 (1)
Change in Net Working Capital 396 (1)
Review Question 397 (1)
Summarizing the Relevant Cash Flows 397 (19)
Review Question 398 (1)
Summary 398 (1)
Self-Test Problems 399 (1)
Warm-Up Exercises 400 (1)
Problems 401 (10)
Chapter 8 Case: Developing Relevant 411 (2)
Cash Flows for Clark Upholstery
Company's Machine Renewal or
Replacement Decision
Spreadsheet Exercise 413 (1)
Group Exercise 414 (1)
Web Exercise 414 (2)
Capital budgeting Techniques 416 (34)
Intel-Putting a Value on Productivity 417 (1)
Overview of Capital Budgeting Techniques 418 (1)
Bennet Company's Relevant Cash Flows 418 (1)
Review Question 419 (1)
Payback Period 419 (4)
The Decision Criteria 419 (1)
Pros and Cons of Payback Periods 420 (1)
In Practice Focus on Practice: Limits 421 (2)
on Payback Analysis
Review Questions 423 (1)
Net Present Value (NPV) 423 (2)
The Decision Criteria 423 (2)
Review Questions 425 (1)
Internal Rate of Return (IRR) 425 (3)
The Decision Criteria 426 (1)
Calculating the IRR 426 (2)
Review Questions 428 (1)
Comparing NPV and IRR Techniques 428 (22)
Net Present Value Profiles 428 (1)
Conflicting Rankings 429 (3)
Which Approach Is Better? 432 (1)
In Practice Focus on Ethics: 433 (1)
Nonfinancial Considerations in Project
Selection
Review Questions 434 (1)
Summary 434 (2)
Self-Test Problem 436 (1)
Warm-Up Exercises 436 (2)
Problems 438 (8)
Chapter 9 Case: Making Norwich Tool's 446 (1)
Lathe Investment Decision
Spreadsheet Exercise 447 (1)
Group Exercise 448 (1)
Web Exercise 449 (1)
Risk and Refinements in Capital Budgeting 450 (45)
Palisade Corporation-Getting a Handle 451 (1)
on Risk
Introduction to Risk in Capital Budgeting 452 (1)
Review Question 452 (1)
Behavioral Approaches for Dealing with 453 (5)
Risk
Risk and Cash Inflows 453 (1)
Sensitivity and Scenario Analysis 454 (2)
Simulation 456 (1)
In Practice Focus on Practice: The 457 (1)
Monte Carlo Method: The Forecast Is for
Less Certainty
Review Questions 457 (1)
International Risk Considerations 458 (1)
Review Question 459 (1)
Risk-Adjusted Discount Rates 459 (8)
Determining Risk-Adjusted Discount 459 (2)
Rates (RADRs)
Applying RADRs 461 (1)
In Practice Focus on Ethics: Warren 462 (2)
Buffet Versus California Earthquake
Authority
Portfolio Effects 464 (1)
RADRs in Practice 465 (1)
Review Questions 466 (1)
Capital Budgeting Refinements 467 (28)
Comparing Projects with Unequal Lives 467 (3)
Recognizing Real Options 470 (2)
Capital Rationing 472 (3)
Review Questions 475 (1)
Summary 475 (2)
Self-Test Problem 477 (1)
Warm-Up Exercises 477 (2)
Problems 479 (9)
Chapter 10 Case: Evaluating Cherone 488 (1)
Equipment's Risky Plans for Increasing
Its Production Capacity
Spreadsheet Exercise 489 (1)
Group Exercise 490 (1)
Web Exercise 491 (1)
Integrative Case 3: Lasting Impressions 492 (3)
Company
PART FOUR LONG-TERM FINANCIAL DECISION 495 (130)
The Cost of Capital 496 (40)
eBay--Fueling the Growth of E-Commerce 497 (1)
An Overview of the Cost of Capital 498 (3)
Some Key Assumptions 498 (1)
The Basic Concept 498 (1)
In Practice Focus on Ethics: Creative 499 (1)
Accounting and Cost of Capital at
WorldCom
Specific Sources of Capital 500 (1)
Review Questions 501 (1)
The Cost of Long-Term Debt 501 (4)
Net Proceeds 502 (1)
Before-Tax Cost of Debt 502 (3)
After-Tax Cost of Debt 505 (1)
Review Questions 505 (1)
The Cost of Preferred Stock 505 (1)
Preferred Stock Dividends 505 (1)
Calculating the Cost of Preferred Stock 506 (1)
Review Question 506 (1)
The Cost of Common Stock 506 (5)
Finding the Cost of Common Stock Equity 507 (2)
The Cost of Retained Earnings 509 (1)
The Cost of New Issues of Common Stock 510 (1)
Review Questions 511 (1)
The Weighted Average Cost of Capital 511 (4)
Calculating the Weighted Average Cost 511 (1)
of Capital (WACC)
Weighting Schemes 512 (1)
Economic Value Added (EVA®) 513 (1)
In Practice Focus on Practice: Evalue 514 (1)
Creation
Review Questions 514 (1)
The Marginal Cost and Investment Decisions 515 (21)
The Weighted Marginal Cost of Capital 515 (1)
(WMCC)
The Investment Opportunities Schedule 516 (3)
(IOS)
Using the WMCC and IOS to Make 519 (1)
Financing/Investment Decisions
Review Questions 519 (1)
Summary 520 (2)
Self-Test Problem 522 (1)
Warm-Up Exercises 523 (1)
Problems 524 (8)
Chapter 11 Case: Making Star Products' 532 (1)
Financing/Investment Decision
Spreadsheet Exercise 533 (1)
Group Exercise 534 (1)
Web Exercise 535 (1)
Leverage and Capital Structure 536 (52)
Krispy Kreme--Investors Eat Up Krispy 537 (1)
Kreme Stock
Leverage 538 (14)
Breakeven Analysis 539 (3)
Operating Leverage 542 (3)
In Practice Focus on Practice: Adobe's 545 (1)
Operating Leverage
Financial Leverage 546 (2)
Total Leverage 548 (3)
In Practice Focus on Ethics: 551 (1)
Overleveraging Companies and Management
Buyouts
Review Questions 552 (1)
The Firm's Capital Structure 552 (13)
Types of Capital 552 (1)
External Assessment of Capital Structure 553 (1)
Capital Structure of Non-U.S. Firms 553 (2)
Capital Structure Theory 555 (8)
The Optimal Capital Structure 563 (1)
Review Questions 564 (1)
The Ebit-Eps Approach to Capital Structure 565 (3)
Presenting a Financing Plan Graphically 565 (1)
Comparing Alternative Capital Structures 566 (1)
Considering Risk in EBIT-EPS Analysis 567 (1)
The Basic Shortcoming of EBIT-EPS 568 (1)
Analysis
Review Question 568 (1)
Choosing the Optimal Capital Structure 568 (20)
Linkage 568 (1)
Estimating Value 569 (1)
Maximizing Value Versus Maximizing EPS 570 (1)
Some Other Important Considerations 570 (1)
Review Questions 571 (1)
Summary 571 (3)
Self-Test Problems 574 (1)
Warm-Up Exercises 575 (1)
Problems 576 (9)
Chapter 12 Case: Evaluating Tampa 585 (1)
Manufacturing's Capital Structure
Spreadsheet Exercise 586 (1)
Group Exercise 586 (1)
Web Exercise 587 (1)
Dividend Policy 588 (37)
Microsoft Corporation--Giving Back to 589 (1)
the Shareholders
Dividend Fundamentals 590 (3)
Cash Dividend Payment Procedures 590 (2)
Tax Treatment of Dividends 592 (1)
In Practice Focus on Practice: Tax Law 592 (1)
Change Leads to Increased Dividend
Payouts
Dividend Reinvestment Plans 593 (1)
Review Questions 593 (1)
The Relevance of Dividend Policy 593 (4)
The Residual Theory of Dividends 594 (1)
Arguments for Dividend Irrelevance 595 (2)
Arguments for Dividend Relevance 597 (1)
Review Questions 597 (1)
Factors Affecting Dividend Policy 597 (4)
Legal Constraints 598 (1)
Contractual Constraints 599 (1)
Internal Constraints 599 (1)
Growth Prospects 599 (1)
Owner Considerations 599 (1)
In Practice Focus on Ethics: Were Ford 600 (1)
Managers Hoarding Cash?
Market Considerations 601 (1)
Review Question 601 (1)
Types of Dividend Policies 601 (3)
Constant-Payout-Ratio Dividend Policy 602 (1)
Regular Dividend Policy 602 (1)
Low-Regular-and-Extra Dividend Policy 603 (1)
Review Question 604 (1)
Other Forms of Dividends 604 (21)
Stock Dividends 604 (2)
Stock Splits 606 (1)
Stock Repurchases 607 (1)
Review Questions 608 (1)
Summary 609 (1)
Self-Test Problem 610 (1)
Warm-Up Exercises 611 (1)
Problems 612 (7)
Chapter 13 Case: Establishing General 619 (1)
Access Company's Dividend Policy and
Initial Dividend
Spreadsheet Exercise 620 (1)
Group Exercise 620 (1)
Web Exercise 621 (1)
Integrative Case 4: O'Grady Apparel 622 (3)
Company
PART FIVE SHORT-TERM FINANCIAL DECISION 625 (80)
Working Capital and Current Assets 626 (42)
Management
AT&T--Outsourcing Is in the Cards 627 (1)
Net Working Capital Fundamentals 628 (3)
Net Working Capital 628 (1)
The Tradeoff Between Profitability and 629 (1)
Risk
Review Questions 630 (1)
The Cash Conversion Cycle 631 (4)
Calculating the Cash Conversion Cycle 631 (1)
Funding Requirements of the Cash 632 (3)
Conversion Cycle
Strategies for Managing the Cash 635 (1)
Conversion Cycle
Review Questions 635 (1)
Inventory Management 635 (6)
Differing Viewpoints About Inventory 636 (1)
Level
Common Techniques for Managing Inventory 636 (4)
In Practice Focus on Practice: RFID: 640 (1)
The Wave of the Future
International Inventory Management 640 (1)
Review Questions 641 (1)
Accounts Receivable Management 641 (10)
Credit Selection and Standards 641 (5)
Credit Terms 646 (2)
Credit Monitoring 648 (2)
Review Questions 650 (1)
Management of Receipts and Disbursements 651 (17)
Float 651 (1)
Speeding Up Collections 651 (1)
Slowing Down Payments 652 (1)
Cash Concentration 652 (1)
In Practice Focus on Ethics: Remote 653 (1)
Disbursing Gains Float for Me, but What
Does It Do for You?
Zero-Balance Accounts 654 (1)
Investing in Marketable Securities 655 (1)
Review Questions 655 (1)
Summary 655 (3)
Self-Test Problems 658 (1)
Warm-Up Exercises 659 (1)
Problems 660 (4)
Chapter 14 Case: Assessing the Roche 664 (1)
Publishing Company's Cash Management
Efficiency
Spreadsheet Exercise 665 (1)
Group Exercise 666 (1)
Web Exercise 666 (2)
Current Liabilities Management 668 (37)
Turner Industries--Constructing a More 669 (1)
Efficient Accounts Payable System
Spontaneous Liabilities 670 (5)
Accounts Payable Management 670 (4)
Accruals 674 (1)
In Practice Focus on Ethics: Amazon 674 (1)
Stays Ethical to Avoid Biting the Hands
that Feed It
Review Questions 675 (1)
Unsecured Sources of Short-Term Loans 675 (9)
Bank Loans 675 (5)
Commercial Paper 680 (1)
In Practice Focus on Practice: 681 (1)
Commercial Paper: On the Verge of a
Comeback?
International Loans 682 (1)
Review Questions 683 (1)
Secured Sources of Short-Term Loans 684 (21)
Characteristics of Secured Short-Term 684 (1)
Loans
The Use of Accounts Receivable as 685 (2)
Collateral
The Use of Inventory as Collateral 687 (1)
Review Questions 688 (1)
Summary 689 (3)
Self-Test Problem 692 (1)
Warm-Up Exercises 693 (1)
Problems 693 (6)
Chapter 15 Case: Selecting Kanton 699 (1)
Company's Financing Strategy and
Unsecured Short-Term Borrowing
Arrangement
Spreadsheet Exercise 700 (1)
Group Exercise 701 (1)
Web Exercise 702 (1)
Integrative Case 5: Case de Diseno 703 (2)
PART SIX SPECIAL TOPIC IN MANAGEMENT FINANCE 705 (1)
Hybrid and Derivative Securities 706 (1)
Walt Disney Co.--Leases to United 707 (1)
Airlines Are Not Very Entertaining
An Overview of Hybrids and Derivatives 708 (1)
Review Question 708 (1)
Leasing 708 (9)
Types of Leases 708 (1)
Leasing Arrangements 709 (1)
The Lease-Versus-Purchase Decision 710 (1)
In Practice Focus on Practice: Triple 711 (4)
Net Lease: Buying a Small Part of a Big
Deal
Effects of Leasing on Future Financing 715 (1)
Advantages and Disadvantages of Leasing 716 (1)
Review Questions 717 (1)
Convertible Securities 717 (6)
Types of Convertible Securities 717 (1)
General Features of Convertibles 718 (1)
Financing with Convertibles 719 (2)
Determining the Value of a Convertible 721 (2)
Bond
Review Questions 723 (1)
Stock Purchase Warrants 723 (5)
Key Characteristics 724 (1)
The Implied Price of an Attached Warrant 725 (1)
The Value of Warrants 726 (2)
Review Questions 728 (1)
Options 728 (18)
Calls and Puts 728 (1)
Options Markets 729 (1)
Options Trading 729 (1)
The Role of Call and Put Options in 730 (1)
Fund Raising
Hedging Foreign-Currency Exposures with 730 (1)
Options
In Practice Focus on Ethics: Valuation 731 (1)
of Derivatives: The Politics of
Accounting
Review Questions 732 (1)
Summary 732 (2)
Self-Test Problems 734 (1)
Warm-Up Exercises 735 (1)
Problems 736 (6)
Chapter 16 Case: Financing L Rashid 742 (2)
Company's Chemical Waste Disposal System
Spreadsheet Exercise 744 (1)
Group Exercise 744 (1)
Web Exercise 745 (1)
Mergers, LBOs, Divestitures, and Business 746 (44)
Failure
JCPenney Company, Inc.--Getting Back to 747 (1)
Basics-Again
Merger Fundamentals 748 (5)
Terminology 748 (2)
Motives for Merging 750 (2)
Types of Mergers 752 (1)
Review Questions 753 (1)
LBOs and Divestitures 753 (2)
Leveraged Buyouts (LBOs) 753 (1)
Divestitures 754 (1)
Review Questions 755 (1)
Analyzing and Negotiating Mergers 755 (14)
Valuing the Target Company 755 (3)
Stock Swap Transactions 758 (6)
The Merger Negotiation Process 764 (1)
Holding Companies 765 (2)
International Mergers 767 (1)
Review Questions 768 (1)
Business Failure Fundamentals 769 (3)
Types of Business Failure 769 (1)
Major Causes of Business Failure 769 (1)
Voluntary Settlements 770 (1)
Review Questions 771 (1)
Reorganization and Liquidation in 772 (18)
Bankruptcy
In Practice Focus on Ethics: Is It 772 (1)
Unethical to Declare Bankrupcy?
Bankruptcy Legislation 773 (1)
Reorganization in Bankruptcy (Chapter 773 (2)
11)
In Practice Focus on Practice: 775 (1)
Corporate Makeover
Liquidation in Bankruptcy (Chapter 7) 775 (1)
Review Questions 776 (1)
Summary 777 (2)
Self-Test Problems 779 (1)
Warm-Up Exercises 780 (1)
Problems 781 (5)
Chapter 17 Case: Deciding Whether to 786 (2)
Acquire or Liquidate Procras Corporation
Spreadsheet Exercise 788 (1)
Group Exercise 789 (1)
Web Exercise 789 (1)
International managerial Finance 790 (1)
General Electric Company--Crowing in an 791 (1)
Uncertain World
The Multinational Company and Its 792 (8)
Environment
Emerging Trading Blocs 792 (2)
GATT and the WTO 794 (1)
Legal Forms of Business Organization 794 (1)
Taxes 795 (2)
Financial Markets 797 (1)
In Practice Focus on Ethics: Is 798 (1)
Greasing the Palms an Ethical Greasy
Pole?
Review Questions 799 (1)
Financial Statements 800 (2)
Consolidation 800 (1)
Translation of Individual Accounts 800 (1)
International Profits 801 (1)
Review Question 802 (1)
Risk 802 (6)
Exchange Rate Risks 802 (4)
Political Risks 806 (2)
Review Questions 808 (1)
Long-Term Investment and Financing 808 (6)
Decisions
Foreign Direct Investment 808 (1)
Investment Cash Flows and Decisions 809 (1)
Capital Structure 810 (1)
In Practice Global Focus: A Step Up the 811 (1)
Corporate Ladder
Long-Term Debt 811 (2)
Equity Capital 813 (1)
Review Questions 814 (1)
Short-Term Financial Decisions 814 (6)
Cash Management 816 (3)
Credit and Inventory Management 819 (1)
Review Questions 819 (1)
Mergers and Joint Ventures 820 (1)
Review Question 821 (1)
Summary 821 (2)
Self-Test Problem 823 (1)
Warm-Up Exercises 823 (1)
Problems 824 (2)
Chapter 18 Case: Assessing a Direct 826 (1)
Investment in Chile by U.S. Computer
Corporation
Spreadsheet Exercise 827 (1)
Group Exercise 828 (1)
Web Exercise 828 (1)
Integrative Case 6: Organic Solutions 829
APPENDIXES
Financial Tables 1 (1)
Solutions to Self-Test Problems 1 (1)
Answers to Selected End-of Chapter 1 (1)
Problems
Web Chapter: Financial Markets and
Institutions on the book's Web site
www.aw-bc.com/gitman
Credits 1 (1)
Index 1