Financial management :
Financial management : principles and applications /
Arthur J. Keown
- 10th ed.
- New Dehli : Pearson/Prentice Hall, 2006
- 801 p.
Includes indexes.
1. Contents
2. Preface 00
3. Part 1: the scope and environment of financial management
4. Chapter 1
5. An introduction to financial management??00
6. What is finance???00
7. Goal of the firm??00
8. Legal forms of business organization??00
9. Ten principles that form the basics of financial management??00
10. Principle 1: the risk-return trade-off?we won?t take on additional risk unless we expect to be compensated
11. With additional return??00
12. Principle 2: the time value of money?a dollar received today is worth more than a dollar received in the
13. Future??00
14. Principle 3: cash?not profits?is king??00
15. Principle 4: incremental cash flows?it?s only what changes that counts??00
16. Principle 5:the curse of competitive markets?why it?s hard to find exceptionally profitable projects??00
17. Principle 6: efficient capital markets?the markets are quick and the prices are right??00
18. Principle 7: the agency problems?manager?s won?t work for owners unless it?s in their best interest??00
19. Principle 8: taxes bias business decisions??00
20. Principle 9: all risk is not equal?some risk can be diversified away, and some cannot??00
21. Principle 10: ethical behavior is doing the right thing, and ethical dilemmas areeverywhere in finance??00
22. Overview of the text??00
23. Finance and the multinational firm: the new role??
24. How financial managers use this material
25. Summary?00
26. Chapter 2
27. Understanding financial statements, taxes, and cash flows
28. The income statement: measuring a company?s profits
29. The balance sheet: measuring a firm?s book value
30. Computing a company?s taxes
31. Measuring free cash flows
32. Financial statements and international finance
33. How financial managers use the information from financial statements
34. Summary
35. Chapter 3
36. Evaluating a firm?s financial performance
37. Financial ratio analysis
38. The dupont analysis: an integrative approach to ratio analysis
39. Summary
40. Chapter 4
41. Financial forecasting, planning, and budgeting
42. Financial forecasting
43. Limitations of the percent of sales forecast method
44. The sustainable rate of growth
45. Financial planning and budgeting
46. How financial managers use this material
47. Summary
48. Part 2: valuation of financial assets
49. Chapter 5
50. The time value of money
51. Compound interest and future value
52. Compound interest with nonannual periods
53. Annuities?a level stream
54. Annuities due
55. Present value of complex stream
56. Perpetuities and infinite annuities
57. Making interest rates comparable
58. The multinational firm: the time value of money
59. Summary
60. Chapter 6
61. Risk and rates of return
62. Rates of return in the financial markets
63. The relationship between risk and rates of return
64. The effects of inflation on rates of return and the fisher effect
65. The term ?structure of interest rates?
66. Expected return
67. Risk
68. Risk and diversification
69. Measuring market risk
70. Measuring a portfolio?s beta
71. The investor?s required rate of return
72. Summary
73. Chapter 7
74. Valuation and characteristics of bonds
75. Types of bonds
76. Terminology and characteristics of bonds
77. Definitions of value
78. Determinants of value
79. Valuation: the basic process
80. Bond valuation
81. The bondholder?s expected rate of return (yield to maturity)
82. Bond valuation: five important relationships
83. How financial managers use this material
84. Summary
85. Chapter 8
86. Stock valuation
87. Features and types of preferred stock
88. Valuing preferred stock
89. Characteristics of common stock
90. Valuing common stock
91. Stockholder?s expected rate of return
92. How financial managers use this material
93. Summary
94. Part 3: investment in long-term assets
95. Chapter 9
96. Finding profitable projects
97. Payback period
98. Net present value
99. Profitability index (benefit/cost ratio)
100. Internal rate of return
101. Ethics in capital budgeting
102. A glance at actual capital-budgeting practices
103. The multinational firm: capital budgeting
104. How financial managers use this material
105. Summary
106. Chapter 10
107. Cash flows and other topics in capital budgeting
108. Guidelines for capital budgeting
109. An overview of the calculations of a project?s free cash flows
110. Complications in capital budgeting: capital rationing and mutually exclusive projects
111. How financial managers use this material
112. The multinational firm: the international complications in calculating expected free cash flows
113. Summary
114. Chapter 11
115. Capital budgeting and risk analysis
116. Risk and the investment decision
117. Methods for incorporating risk into capital budgeting
118. Other approaches to evaluating risk in capital budgeting
119. How financial managers use this material
120. The multinational firm: capital budgeting and risk
121. Summary
122. Chapter 12
123. Cost of capital
124. The cost of capital: key definitions and concepts
125. Determining individual costs of capital
126. The weighted average cost of capital
127. Cost of capital in practice: briggs & stratton
128. Calculating divisional costs of capital: pepsico, inc.
129. Using a firm?s cost of capital to evaluate new capital investments
130. How financial managers use this material
131. Summary
132. Chapter 13
133. Managing for shareholder value
134. Who are the top creators of shareholder value?
135. Business valuation?the key to creating shareholder value
136. Value drivers
137. Economic value added (eva)
138. Paying for performance
139. Linking incentive compensation to performance
140. How financial managers use this material
141. Summary
142. Part 4: capital structure and dividend policy
143. Chapter 14
144. Raising capital in the financial markets
145. The financial manager, internal and external funds, and flexibility
146. The mix of corporate securities sold in the capital market
147. Why financial markets exist
148. Financing of business: the movement of funds through the economy
149. Components of the u.s. Financial market system
150. The investment banker
151. More on private placements: the debt side
152. Flotation costs
153. How financial managers use this material
154. Summary
155. Chapter 15
156. Analysis and impact of leverage
157. Business and financial risk
158. Break-even analysis
159. Operating leverage
160. Financial leverage
161. Combination of operating and financial leverage
162. The multinational firm: business risk and global sales
163. How financial managers use this material
164. Summary
165. Chapter 16
166. Planning the firm?s financing mix
167. Key terms and getting started
168. A glance at capital structure theory
169. Basic tools of capital structure management
170. The multinational firm: beware of currency risk
171. How financial managers use this material
172. Summary
173. Chapter 17
174. Dividend policy and internal financing
175. Dividend payment versus profit retention
176. Does dividend policy affect stock price?4
177. The dividend decision in practice
178. Dividend payment procedures
179. Stock dividends and stock splits
180. Stock repurchases
181. The multinational firm: the case of low dividend payments?so where do we invest?
182. How financial managers use this material
183. Summary
184. Part 5: working-capital management and special topics in finance
185. Chapter 18
186. Working-capital management and short-term financing
187. Managing current assets and liabilities
188. Working-capital management and the risk-return trade-off
189. Advantages of current liabilities: the return
190. Appropriate level of working capital
191. Hedging principles
192. Calculate a firm?s cash conversion cycle and interpret its component parts
193. Estimation of the cost of short-term credit
194. Sources of short-term credit
195. Summary
196. Chapter 19
197. Cash and marketable securities management
198. What are liquid assets?
199. Why a company holds cash
200. Cash-management objectives and decisions
201. Collection and disbursement procedures
202. Composition of marketable securities portfolio
203. The multinational firm: the use of cash and marketable securities
204. How financial managers use this material
205. Summary
206. Chapter 20
207. Accounts receivable and inventory management
208. Accounts receivable management
209. Inventory management
210. Tqm and inventory-purchasing management: the new supplier relationships
211. How financial managers use this material
212. Summary
213. Chapter 21
214. Risk management
215. Futures
216. Options
217. Currency swaps
218. The multination firm and risk management
219. How financial managers use this material
220. Summary
221. Chapter 22
222. International business finance
223. The globalization of product and financial markets
224. Exchange rates
225. Interest-rate parity theory
226. Purchasing power parity
227. Exposure to exchange rate risk
228. Multinational working-capital management
229. International financing and capital-structure decisions
230. Direct foreign investment
231. How financial managers use this material
232. Summary
233. Chapter 23
234. Corporate restructuring: combinations and divestitures
235. Why mergers might create wealth
236. Determination of a firm?s value
237. Divestitures
238. How financial managers use this material
239. Summary
240. Chapter 24
241. Term loans and leases
242. Term loans
243. Leases
244. How financial managers use this material
245. Summary
246. Appendixes 000
247. Glossary 000
248. Indexes 000
0131450654 9780131450653 0131273183 (pbk.) 9780131273184 (pbk.)
Business enterprises--Finance.
Corporations--Finance.
658.15 / K379
Includes indexes.
1. Contents
2. Preface 00
3. Part 1: the scope and environment of financial management
4. Chapter 1
5. An introduction to financial management??00
6. What is finance???00
7. Goal of the firm??00
8. Legal forms of business organization??00
9. Ten principles that form the basics of financial management??00
10. Principle 1: the risk-return trade-off?we won?t take on additional risk unless we expect to be compensated
11. With additional return??00
12. Principle 2: the time value of money?a dollar received today is worth more than a dollar received in the
13. Future??00
14. Principle 3: cash?not profits?is king??00
15. Principle 4: incremental cash flows?it?s only what changes that counts??00
16. Principle 5:the curse of competitive markets?why it?s hard to find exceptionally profitable projects??00
17. Principle 6: efficient capital markets?the markets are quick and the prices are right??00
18. Principle 7: the agency problems?manager?s won?t work for owners unless it?s in their best interest??00
19. Principle 8: taxes bias business decisions??00
20. Principle 9: all risk is not equal?some risk can be diversified away, and some cannot??00
21. Principle 10: ethical behavior is doing the right thing, and ethical dilemmas areeverywhere in finance??00
22. Overview of the text??00
23. Finance and the multinational firm: the new role??
24. How financial managers use this material
25. Summary?00
26. Chapter 2
27. Understanding financial statements, taxes, and cash flows
28. The income statement: measuring a company?s profits
29. The balance sheet: measuring a firm?s book value
30. Computing a company?s taxes
31. Measuring free cash flows
32. Financial statements and international finance
33. How financial managers use the information from financial statements
34. Summary
35. Chapter 3
36. Evaluating a firm?s financial performance
37. Financial ratio analysis
38. The dupont analysis: an integrative approach to ratio analysis
39. Summary
40. Chapter 4
41. Financial forecasting, planning, and budgeting
42. Financial forecasting
43. Limitations of the percent of sales forecast method
44. The sustainable rate of growth
45. Financial planning and budgeting
46. How financial managers use this material
47. Summary
48. Part 2: valuation of financial assets
49. Chapter 5
50. The time value of money
51. Compound interest and future value
52. Compound interest with nonannual periods
53. Annuities?a level stream
54. Annuities due
55. Present value of complex stream
56. Perpetuities and infinite annuities
57. Making interest rates comparable
58. The multinational firm: the time value of money
59. Summary
60. Chapter 6
61. Risk and rates of return
62. Rates of return in the financial markets
63. The relationship between risk and rates of return
64. The effects of inflation on rates of return and the fisher effect
65. The term ?structure of interest rates?
66. Expected return
67. Risk
68. Risk and diversification
69. Measuring market risk
70. Measuring a portfolio?s beta
71. The investor?s required rate of return
72. Summary
73. Chapter 7
74. Valuation and characteristics of bonds
75. Types of bonds
76. Terminology and characteristics of bonds
77. Definitions of value
78. Determinants of value
79. Valuation: the basic process
80. Bond valuation
81. The bondholder?s expected rate of return (yield to maturity)
82. Bond valuation: five important relationships
83. How financial managers use this material
84. Summary
85. Chapter 8
86. Stock valuation
87. Features and types of preferred stock
88. Valuing preferred stock
89. Characteristics of common stock
90. Valuing common stock
91. Stockholder?s expected rate of return
92. How financial managers use this material
93. Summary
94. Part 3: investment in long-term assets
95. Chapter 9
96. Finding profitable projects
97. Payback period
98. Net present value
99. Profitability index (benefit/cost ratio)
100. Internal rate of return
101. Ethics in capital budgeting
102. A glance at actual capital-budgeting practices
103. The multinational firm: capital budgeting
104. How financial managers use this material
105. Summary
106. Chapter 10
107. Cash flows and other topics in capital budgeting
108. Guidelines for capital budgeting
109. An overview of the calculations of a project?s free cash flows
110. Complications in capital budgeting: capital rationing and mutually exclusive projects
111. How financial managers use this material
112. The multinational firm: the international complications in calculating expected free cash flows
113. Summary
114. Chapter 11
115. Capital budgeting and risk analysis
116. Risk and the investment decision
117. Methods for incorporating risk into capital budgeting
118. Other approaches to evaluating risk in capital budgeting
119. How financial managers use this material
120. The multinational firm: capital budgeting and risk
121. Summary
122. Chapter 12
123. Cost of capital
124. The cost of capital: key definitions and concepts
125. Determining individual costs of capital
126. The weighted average cost of capital
127. Cost of capital in practice: briggs & stratton
128. Calculating divisional costs of capital: pepsico, inc.
129. Using a firm?s cost of capital to evaluate new capital investments
130. How financial managers use this material
131. Summary
132. Chapter 13
133. Managing for shareholder value
134. Who are the top creators of shareholder value?
135. Business valuation?the key to creating shareholder value
136. Value drivers
137. Economic value added (eva)
138. Paying for performance
139. Linking incentive compensation to performance
140. How financial managers use this material
141. Summary
142. Part 4: capital structure and dividend policy
143. Chapter 14
144. Raising capital in the financial markets
145. The financial manager, internal and external funds, and flexibility
146. The mix of corporate securities sold in the capital market
147. Why financial markets exist
148. Financing of business: the movement of funds through the economy
149. Components of the u.s. Financial market system
150. The investment banker
151. More on private placements: the debt side
152. Flotation costs
153. How financial managers use this material
154. Summary
155. Chapter 15
156. Analysis and impact of leverage
157. Business and financial risk
158. Break-even analysis
159. Operating leverage
160. Financial leverage
161. Combination of operating and financial leverage
162. The multinational firm: business risk and global sales
163. How financial managers use this material
164. Summary
165. Chapter 16
166. Planning the firm?s financing mix
167. Key terms and getting started
168. A glance at capital structure theory
169. Basic tools of capital structure management
170. The multinational firm: beware of currency risk
171. How financial managers use this material
172. Summary
173. Chapter 17
174. Dividend policy and internal financing
175. Dividend payment versus profit retention
176. Does dividend policy affect stock price?4
177. The dividend decision in practice
178. Dividend payment procedures
179. Stock dividends and stock splits
180. Stock repurchases
181. The multinational firm: the case of low dividend payments?so where do we invest?
182. How financial managers use this material
183. Summary
184. Part 5: working-capital management and special topics in finance
185. Chapter 18
186. Working-capital management and short-term financing
187. Managing current assets and liabilities
188. Working-capital management and the risk-return trade-off
189. Advantages of current liabilities: the return
190. Appropriate level of working capital
191. Hedging principles
192. Calculate a firm?s cash conversion cycle and interpret its component parts
193. Estimation of the cost of short-term credit
194. Sources of short-term credit
195. Summary
196. Chapter 19
197. Cash and marketable securities management
198. What are liquid assets?
199. Why a company holds cash
200. Cash-management objectives and decisions
201. Collection and disbursement procedures
202. Composition of marketable securities portfolio
203. The multinational firm: the use of cash and marketable securities
204. How financial managers use this material
205. Summary
206. Chapter 20
207. Accounts receivable and inventory management
208. Accounts receivable management
209. Inventory management
210. Tqm and inventory-purchasing management: the new supplier relationships
211. How financial managers use this material
212. Summary
213. Chapter 21
214. Risk management
215. Futures
216. Options
217. Currency swaps
218. The multination firm and risk management
219. How financial managers use this material
220. Summary
221. Chapter 22
222. International business finance
223. The globalization of product and financial markets
224. Exchange rates
225. Interest-rate parity theory
226. Purchasing power parity
227. Exposure to exchange rate risk
228. Multinational working-capital management
229. International financing and capital-structure decisions
230. Direct foreign investment
231. How financial managers use this material
232. Summary
233. Chapter 23
234. Corporate restructuring: combinations and divestitures
235. Why mergers might create wealth
236. Determination of a firm?s value
237. Divestitures
238. How financial managers use this material
239. Summary
240. Chapter 24
241. Term loans and leases
242. Term loans
243. Leases
244. How financial managers use this material
245. Summary
246. Appendixes 000
247. Glossary 000
248. Indexes 000
0131450654 9780131450653 0131273183 (pbk.) 9780131273184 (pbk.)
Business enterprises--Finance.
Corporations--Finance.
658.15 / K379
