Essentials of corporate finance:
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Boston [u.a.]
McGraw-Hill Irwin
2004
|
| Edition: | 4. ed., internat. ed. |
| Series: | The McGraw-Hill/Irwin series in finance, insurance and real estate
|
| Subjects: | |
| Links: | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=012776507&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| Abstract: | Examples are drawn from every aspect of business, not just corporate finance and help is given at every turn to help you look like a finance major come test time. |
| Item Description: | 5. Aufl. u.d.T.: Ross, Stephen A.: Corporate finance: essentials |
| Physical Description: | XXXII, 592 S. graph. Darst. |
| ISBN: | 0071215077 |
Staff View
MARC
| LEADER | 00000nam a2200000 c 4500 | ||
|---|---|---|---|
| 001 | BV019308591 | ||
| 003 | DE-604 | ||
| 005 | 20120621 | ||
| 007 | t| | ||
| 008 | 040527s2004 xxud||| |||| 00||| eng d | ||
| 020 | |a 0071215077 |9 0-07-121507-7 | ||
| 035 | |a (OCoLC)50755170 | ||
| 035 | |a (DE-599)BVBBV019308591 | ||
| 040 | |a DE-604 |b ger |e rakwb | ||
| 041 | 0 | |a eng | |
| 044 | |a xxu |c US | ||
| 049 | |a DE-573 | ||
| 050 | 0 | |a HG4026 | |
| 082 | 0 | |a 658.15 |2 21 | |
| 084 | |a QP 700 |0 (DE-625)141926: |2 rvk | ||
| 100 | 1 | |a Ross, Stephen A. |d 1944-2017 |e Verfasser |0 (DE-588)128781408 |4 aut | |
| 245 | 1 | 0 | |a Essentials of corporate finance |c Stephen A. Ross ; Randolph W. Westerfield ; Bradford D. Jordan |
| 250 | |a 4. ed., internat. ed. | ||
| 264 | 1 | |a Boston [u.a.] |b McGraw-Hill Irwin |c 2004 | |
| 300 | |a XXXII, 592 S. |b graph. Darst. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 0 | |a The McGraw-Hill/Irwin series in finance, insurance and real estate | |
| 500 | |a 5. Aufl. u.d.T.: Ross, Stephen A.: Corporate finance: essentials | ||
| 520 | 3 | |a Examples are drawn from every aspect of business, not just corporate finance and help is given at every turn to help you look like a finance major come test time. | |
| 650 | 7 | |a Administração financeira |2 larpcal | |
| 650 | 7 | |a Bedrijfsfinanciering |2 gtt | |
| 650 | 7 | |a Finanças das empresas |2 larpcal | |
| 650 | 4 | |a Corporations |x Finance | |
| 650 | 0 | 7 | |a Finanzierung |0 (DE-588)4017182-6 |2 gnd |9 rswk-swf |
| 650 | 0 | 7 | |a Corporate Finance |0 (DE-588)4269795-5 |2 gnd |9 rswk-swf |
| 655 | 7 | |0 (DE-588)4123623-3 |a Lehrbuch |2 gnd-content | |
| 689 | 0 | 0 | |a Finanzierung |0 (DE-588)4017182-6 |D s |
| 689 | 0 | |5 DE-604 | |
| 689 | 1 | 0 | |a Corporate Finance |0 (DE-588)4269795-5 |D s |
| 689 | 1 | |C b |5 DE-604 | |
| 700 | 1 | |a Westerfield, Randolph |e Verfasser |0 (DE-588)121792250 |4 aut | |
| 700 | 1 | |a Jordan, Bradford D. |e Verfasser |4 aut | |
| 856 | 4 | 2 | |m HBZ Datenaustausch |q application/pdf |u http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=012776507&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |3 Inhaltsverzeichnis |
| 943 | 1 | |a oai:aleph.bib-bvb.de:BVB01-012776507 | |
Record in the Search Index
| _version_ | 1819327221579382784 |
|---|---|
| adam_text | OVERVIEW OF FINANCIAL MANAGEMENT
1 Introduction to Financial Management l
UNDERSTANDING FINANCIAL STATEMENTS AND CASH FLOW
2 Financial Statements, Taxes, and Cash Flow 21
3 Working with Financial Statements 48
VALUATION OF FUTURE CASH FLOWS
4 Introduction to Valuation: The Time Value of Money 87
5 Discounted Cash Flow Valuation 112
VALUING STOCKS AND BONDS
6 Interest Rates and Bond Valuation 153
7 Equity Markets and Stock Valuation 194
CAPITAL BUDGETING
8 Net Present Value and Other Investment Criteria 223
9 Making Capital Investment Decisions 256
RISK AND RETURN
10 Some Lessons from Capital Market History 289
11 Risk and Return 322
LONG TERM FINANCING
12 Cost of Capital 361
13 Leverage and Capital Structure 388
14 Dividends and Dividend Policy 419
15 Raising Capital 442
SHORT TERM FINANCIAL MANAGEMENT
16 Short Term Financial Planning 471
17 Working Capital Management 502
TOPICS IN BUSINESS FINANCE
18 International Aspects of Financial Management 537
A Mathematical Tables 560
B Key Equations 568
C Answers to Selected End of Chapter Problems 571
D Using the HP 1 OB and TI BAII Plus Financial Calculators 574
Glossary 577
Name Index 583
Subject Index 584
OVERVIEW OF FINANCIAL MANAGEMENT
CHAPTER 1
Introduction to Financial
Management
1.1 Finance: A Quick Look 2
The Four Basic Areas 2
Corporate Finance 2
Investments 2
Financial Institutions 3
International Finance 3
Why Study Finance? 3
Marketing and Finance 3
Accounting and Finance 4
Management and Finance 4
You and Finance 4
1.2 Business Finance and the Financial Manager 4
What is Business Finance? 5
The Financial Manager 5
Financial Management Decisions 6
Capital Budgeting 6
Capital Structure 6
Working Capital Management 6
Conclusion 6
1.3 Forms of Business Organization 7
Sole Proprietorship 7
Partnership 7
Corporation 8
A Corporation by Another Name ... 9
1.4 The Goal of Financial Management 10
Profit Maximization 10
The Goal of Financial Management in a Corporation 10
A More General Financial Management Goal 10
1.5 The Agency Problem and Control of the
Corporation 12
Agency Relationships 12
Management Goals 12
Do Managers Act in the Stockholders Interests? 13
Managerial Compensation 13
Control of the Firm 13
Conclusion 13
Stakeholders 14
1.6 Financial Markets and the Corporation 15
Cash Flows to and from the Firm 15
Primary versus Secondary Markets 16
Primary Markets 16
Secondary Markets 17
Summary and Conclusions 18
Critical Thinking and Concepts Review 19
What s On the Web? 20
UNDERSTANDING FINANCIAL STATEMENTS AND
CASH FLOW
CHAPTER 2
Financial Statements, Taxes, and
Cash Flow
2.1 The Balance Sheet 22
Assets: The Left Hand Side 22
Liabilities and Owners Equity: The Right Hand Side 23
Net Working Capital 23
Liquidity 24
Debt versus Equity 25
Market Value versus Book Value 25
2.2 The Income Statement 26
GAAP and the Income Statement 27
Noncash Items 28
Time and Costs 29
2.3 Taxes 30
Corporate Tax Rates 31
Average versus Marginal Tax Rates 31
2.4 Cash Flow 33
Cash Flow from Assets 33
Operating Cash Flow 33
Capital Spending 34
Change in Net Working Capital 35
Conclusion 35
A Note on Free Cash Flow 35
Cash Flow to Creditors and Stockholders 36
Cash Flow to Creditors 36
Cash Flow to Stockholders 36
Conclusion 36
An Example: Cash Flows for Dole Cola 38
Operating Cash Flow 38
Net Capital Spending 39
Change in NWC and Cash Flow from Assets 39
Cash Flow to Creditors and Stockholders 39
Summary and Conclusions 40
Chapter Review and Self Test Problem 41
Answer to Chapter Review and Self Test Problem 41
Critical Thinking and Concepts Review 43
Questions and Problems 44
What s On the Web? 47
CHAPTER 3
Working with Financial Statements
3.1 Standardized Financial Statements 49
Common Size Balance Sheets 50
Common Size Income Statements 51
3.2 Ratio Analysis 52
Short Term Solvency, or Liquidity, Measures 53
Current Ratio 53
Quick (or Acid Test) Ratio 54
Cash Ratio 55
Long Term Solvency Measures 55
Total Debt Ratio 55
Times Interest Earned 55
Cash Coverage 56
Asset Management, or Turnover, Measures 56
Inventory Turnover and Days Sales in Inventory 56
Receivables Turnover and Days Sales in
Receivables 57
Total Asset Turnover 57
Profitability Measures 58
Profit Margin 58
Return on Assets 59
Return on Equity 59
Market Value Measures 59
Price Earnings Ratio 59
Market to Book Ratio 60
3.3 The Du Pont Identity 61
3.4 Internal and Sustainable Growth 62
Dividend Payout and Earnings Retention 62
ROA, ROE, and Growth 63
The Internal Growth Rate 63
The Sustainable Growth Rate 64
Determinants of Growth 65
3.5 Using Financial Statement Information 66
Why Evaluate Financial Statements? 66
Internal Uses 67
External Uses 67
Choosing a Benchmark 67
Time Trend Analysis 67
Peer Group Analysis 67
Problems with Financial Statement Analysis 72
Summary and Conclusions 74
Chapter Review and Self Test Problems 75
Answers to Chapter Review and Self Test Problems 76
Critical Thinking and Concepts Review 77
Questions and Problems 79
What s On the Web? 84
VALUATION OF FUTURE CASH FLOWS
CHAPTER 4
Introduction to Valuation: The Time
Value of Money
4.1 Future Value and Compounding 88
Investing for a Single Period 88
Investing for More Than One Period 88
4.2 Present Value and Discounting 95
The Single Period Case 95
Present Values for Multiple Periods 96
4.3 More on Present and Future Values 99
Present versus Future Value 99
Determining the Discount Rate 99
Finding the Number ot Periods 103
Summary and Conclusions 106
Chapter Review and Self Test Problems 107
Answers to Chapter Review and Self Test
Problems 107
Critical Thinking and Concepts Review 108
Questions and Problems 108
What s On the Web? 111
CHAPTER 5
Discounted Cash Flow Valuation
5.1 Future and Present Values of Multiple Cash Flows 113
Future Value with Multiple Cash Flows 113
Present Value with Multiple Cash Flows 116
A Note on Cash Flow Timing 120
5.2 Valuing Level Cash Flows: Annuities and
Perpetuities 121
Present Value for Annuity Cash Flows 122
Annuity Tables 123
Finding the Payment 124
Finding the Rate 126
Future Value for Annuities 127
A Note on Annuities Due 128
Perpetuities 129
5.3 Comparing Rates: The Effect of Compounding
Periods 131
Effective Annual Rates and Compounding 131
Calculating and Comparing Effective Annual Rates 131
EARs and APRs 133
EARs, APRs, Financial Calculators, and
Spreadsheets 134
5.4 Loan Types and Loan Amortization 135
Pure Discount Loans 135
Interest Only Loans 135
Amortized Loans 136
Summary and Conclusions 140
Chapter Review and Self Test Problems 141
Answers to Chapter Review and Self Test
Problems 141
Critical Thinking and Concepts Review 143
Questions and Problems 144
What s On the Web? 150
VALUING STOCKS AND BONDS
CHAPTER 6
Interest Rates and Bond Valuation
6.1 Bonds and Bond Valuation 154
Bond Features and Prices 154
Bond Values and Yields 155
Interest Rate Risk 158
Finding the Yield to Maturity: More Trial and Error 160
6.2 More on Bond Features 163
Is It Debt or Equity? 164
Long Term Debt: The Basics 164
The Indenture 165
Terms of a Bond 166
Security 166
Seniority 167
Repayment 167
The Call Provision 167
Protective Covenants 168
6.3 Bond Ratings 168
6.4 Some Different Types of Bonds 170
Government Bonds 170
Zero Coupon Bonds 171
Floating Rate Bonds 172
Other Types of Bonds 173
6.5 Bond Markets 173
How Bonds Are Bought and Sold 175
Bond Price Reporting 175
6.6 Inflation and Interest Rates 180
Real versus Nominal Rates 180
The Fisher Effect 181
6.7 Determinants of Bond Yields 182
The Term Structure of Interest Rates 182
Bond Yields and the Yield Curve: Putting It All
Together 185
Conclusion 186
Summary and Conclusions 186
Chapter Review and Self Test Problems 187
Answers to Chapter Review and Self Test
Problems 187
Critical Thinking and Concepts Review 188
Questions and Problems 189
What s On the Web? 192
CHAPTER 7
Equity Markets and Stock Valuation
7.1 Common Stock Valuation 195
Cash Flows 195
Some Special Cases 196
Zero Growth 197
Constant Growth 197
Nonconstant Growth 200
Components of the Required Return 202
7.2 Some Features of Common and Preferred Stock 204
Common Stock Features 204
Shareholder Rights 204
Proxy Voting 205
Classes of Stock 205
Other Rights 206
Dividends 206
Conclusion 207
Preferred Stock Features 207
Stated Value 208
Cumulative and Noncumulative Dividends 208
Is Preferred Stock Really Debt? 208
7.3 The Stock Markets 209
Dealers and Brokers 209
Organization of the NYSE 209
Members 209
Operations 210
Floor Activity 210
Nasdaq Operations 212
ECNs 212
Stock Market Reporting 213
Summary and Conclusions 215
Chapter Review and Self Test Problems 216
Answers to Chapter Review and Self Test
Problems 216
Critical Thinking and Concepts Review 217
Questions and Problems 218
What s On the Web? 220
CAPITAL BUDGETING
CHAPTER 8
Net Present Value and Other
Investment Criteria
8.1 Net Present Value 224
The Basic Idea 224
Estimating Net Present Value 225
8.2 The Payback Rule 228
Defining the Rule 228
Analyzing the Rule 230
Redeeming Qualities of the Rule 231
Summary of the Rule 231
8.3 The Average Accounting Return 232
8.4 The Internal Rate of Return 234
Problems with the IRR 237
Nonconventional Cash Flows 237
Mutually Exclusive Investments 239
Redeeming Qualities of the IRR 241
8.5 The Profitability Index 242
8.6 The Practice of Capital Budgeting 242
Summary and Conclusions 244
Chapter Review and Self Test Problems 245
Answers to Chapter Review and Self Test
Problems 246
Critical Thinking and Concepts Review 247
Questions and Problems 248
What s On the Web? 255
CHAPTER 9
Making Capital Investment Decisions
9.1 Project Cash Flows: A First Look 257
Relevant Cash Flows 257
The Stand Alone Principle 257
9.2 Incremental Cash Flows 258
Sunk Costs 258
Opportunity Costs 258
Side Effects 259
Net Working Capital 259
Financing Costs 259
Other Issues 260
9.3 Pro Forma Financial Statements and Project Cash
Flows 260
Getting Started: Pro Forma Financial Statements 260
Project Cash Flows 261
Project Operating Cash Flow 261
Project Net Working Capital and Capital Spending 262
Projected Total Cash Flow and Value 262
The Tax Shield Approach 263
9.4 More on Project Cash Flow 264
A Closer Look at Net Working Capital 264
Depreciation 265
Modified ACRS (MACRS) Depreciation 266
Book Value versus Market Value 266
An Example: The Majestic Mulch and Compost Company
(MMCC) 268
Operating Cash Flows 268
Changes in NWC 269
Capital Spending 270
Total Cash Flow and Value 270
Conclusion 270
9.5 Evaluating NPV Estimates 272
The Basic Problem 272
Forecasting Risk 272
Sources of Value 274
9.6 Scenario and Other What lf Analyses 274
Getting Started 274
Scenario Analysis 275
Sensitivity Analysis 277
9.7 Additional Considerations in Capital Budgeting 278
Managerial Options and Capital Budgeting 278
Contingency Planning 278
Strategic Options 279
Conclusion 279
Capital Rationing 280
Soft Rationing 280
Hard Rationing 280
Summary and Conclusions 281
Chapter Review and Self Test Problems 281
Answers to Chapter Review and Self Test
Problems 281
Critical Thinking and Concepts Review 282
Questions and Problems 283
RISK AND RETURN
CHAPTER 10
Some Lessons from Capital
Market History
10.1 Returns 291
Dollar Returns 291
Percentage Returns 292
10.2 The Historical Record 294
A First Look 295
A Closer Look 295
10.3 Average Returns: The First Lesson 299
Calculating Average Returns 301
Average Returns: The Historical Record 301
Risk Premiums 301
The First Lesson 302
10.4 The Variability of Returns: The Second Lesson 303
Frequency Distributions and Variability 303
The Historical Variance and Standard Deviation 303
The Historical Record 307
Normal Distribution 307
The Second Lesson 308
Using Capital Market History 309
10.5 Capital Market Efficiency 311
Price Behavior in an Efficient Market 311
The Efficient Markets Hypothesis 313
Some Common Misconceptions about the EMH 313
The Forms of Market Efficiency 315
Summary and Conclusions 316
Chapter Review and Self Test Problems 316
Answers to Chapter Review and Self Test
Problems 316
Critical Thinking and Concepts Review 317
Questions and Problems 318
What s On the Web? 321
CHAPTER 11
Risk and Return
11.1 Expected Returns and Variances 323
Expected Return 323
Calculating the Variance 325
11.2 Portfolios 327
Portfolio Weights 327
Portfolio Expected Returns 327
Portfolio Variance 329
11.3 Announcements, Surprises, and Expected
Returns 330
Expected and Unexpected Returns 330
Announcements and News 331
11.4 Risk: Systematic and Unsystematic 332
Systematic and Unsystematic Risk 333
Systematic and Unsystematic Components of Return 333
11.5 Diversification and Portfolio Risk 334
The Effect of Diversification: Another Lesson from Market
History 334
The Principle of Diversification 335
Diversification and Unsystematic Risk 335
Diversification and Systematic Risk 336
11.6 Systematic Risk and Beta 337
The Systematic Risk Principle 337
Measuring Systematic Risk 338
Portfolio Betas 339
11.7 The Security Market Line 341
Beta and the Risk Premium 341
The Reward to Risk Ratio 342
The Basic Argument 343
The Fundamental Result 344
The Security Market Line 346
Market Portfolios 346
The Capital Asset Pricing Model 346
11.8 The SML and the Cost of Capital: A Preview 349
The Basic Idea 349
The Cost of Capital 349
Summary and Conclusions 350
Chapter Review and Self Test Problems 350
Answers to Chapter Review and Self Test
Problems 351
Critical Thinking and Concepts Review 352
Questions and Problems 354
What s On the Web? 360
LONG TERM FINANCING
CHAPTER 12
Cost of Capital
12.1 The Cost of Capital: Some Preliminaries 362
Required Return versus Cost of Capital 362
Financial Policy and Cost of Capital 363
12.2 The Cost of Equity 363
The Dividend Growth Model Approach 364
Implementing the Approach 364
Estimating g 364
Advantages and Disadvantages of the Approach 365
The SML Approach 366
Implementing the Approach 366
Advantages and Disadvantages of the Approach 366
12.3 The Costs of Debt and Preferred Stock 367
The Cost of Debt 367
The Cost of Preferred Stock 368
12.4 The Weighted Average Cost of Capital 369
The Capital Structure of Weights 369
Taxes and the Weighted Average Cost of Capital 370
Solving the Warehouse Problem and Similar Capital
Budgeting Problems 372
Calculating the WACC for Eastman Chemical 372
Eastman s Cost of Equity 373
Eastman s Cost of Debt 374
Eastman s WACC 375
12.5 Divisional and Project Costs of Capital 376
The SML and the WACC 377
Divisional Cost of Capital 378
The Pure Play Approach 378
The Subjective Approach 379
Summary and Conclusions 380
Chapter Review and Self Test Problems 380
Answers to Chapter Review and Self Test
Problems 380
Critical Thinking and Concepts Review 381
Questions and Problems 382
What s On the Web? 387
CHAPTER 13
Leverage and Capital Structure
13.1 The Capital Structure Question 389
13.2 The Effect of Financial Leverage 390
The Impact of Financial Leverage 390
Financial Leverage, EPS, and ROE: An Example 390
EPS versus EBIT 391
Corporate Borrowing and Homemade Leverage 393
13.3 Capital Structure and the Cost of Equity Capital 395
M M Proposition I: The Pie Model 395
The Cost of Equity and Financial Leverage:
M M Proposition II 396
Business and Financial Risk 397
13.4 Corporate Taxes and Capital Structure 398
The Interest Tax Shield 399
Taxes and M M Proposition I 399
Conclusion 400
13.5 Bankruptcy Costs 401
Direct Bankruptcy Costs 401
Indirect Bankruptcy Costs 402
13.6 Optimal Capital Structure 402
The Static Theory of Capital Structure 403
Optimal Capital Structure and the Cost of Capital 404
Capital Structure: Some Managerial
Recommendations 404
Taxes 406
Financial Distress 406
13.7 Observed Capital Structures 406
13.8 A Quick Look at the Bankruptcy Process 408
Liquidation and Reorganization 408
Bankruptcy Liquidation 408
Bankruptcy Reorganization 409
Financial Management and the Bankruptcy Process 410
Agreements to Avoid Bankruptcy 411
Summary and Conclusions 412
Chapter Review and Self Test Problems 412
Answers to Chapter Review and Self Test
Problems 412
Critical Thinking and Concepts Review 413
Questions and Problems 414
What s On the Web? 416
CHAPTER 14
Dividends and Dividend Policy
14.1 Cash Dividends and Dividend Payment 420
Cash Dividends 421
Standard Method of Cash Dividend Payment 421
Dividend Payment: A Chronology 421
More on the Ex Dividend Date 422
14.2 Does Dividend Policy Matter? 423
An Illustration of the Irrelevance of Dividend Policy 423
Current Policy: Dividends Set Equal to Cash Flow 423
Alternative Policy: Initial Dividend Greater Than
Cash Flow 424
A Test 424
Some Real World Factors Favoring a Low Payout 425
Taxes 425
Flotation Costs 425
Dividend Restrictions 425
Some Real World Factors Favoring a High Payout 425
Desire for Current Income 426
Tax and Legal Benefits from High Dividends 426
Clientele Effects: A Resolution of Real World
Factors? 427
14.3 Establishing a Dividend Policy 427
Residual Dividend Approach 427
Dividend Stability 428
A Compromise Dividend Policy 429
14.4 Stock Repurchase: An Alternative to Cash
Dividends 430
Cash Dividends versus Repurchase 430
Real World Considerations in a Repurchase 431
Share Repurchase and EPS 432
14.5 Stock Dividends and Stock Splits 432
Value of Stock Splits and Stock Dividends 433
The Benchmark Case 434
Popular Trading Range 434
Reverse Splits 434
Summary and Conclusions 435
Chapter Review and Self Test Problem 436
Answer to Chapter Review and Self Test Problem 436
Critical Thinking and Concepts Review 436
Questions and Problems 437
What s On the Web? 440
CHAPTER 15
Raising Capital
15.1 The Financing Life Cycle of a Firm: Early Stage
Financing and Venture Capital 443
Venture Capital 443
Some Venture Capital Realities 444
Choosing a Venture Capitalist 444
Conclusion 445
15.2 Selling Securities to the Public: The Basic
Procedure 445
15.3 Alternative Issue Methods 448
15.4 Underwriters 448
Choosing an Underwriter 449
Types of Underwriting 449
Firm Commitment Underwriting 450
Best Efforts Underwriting 450
The Green Shoe Provision 450
The Aftermarket 450
Lockup Agreements 451
The Quiet Period 451
15.5 IPOs and Underpricing 451
Evidence on Underpricing 452
IPO Underpricing: The 1999 2000 Experience 453
Why Does Underpricing Exist? 455
15.6 New Equity Sales and the Value of the Firm 458
15.7 The Cost of Issuing Securities 459
15.8 Issuing Long Term Debt 463
15.9 Shelf Registration 464
Summary and Conclusions 464
Chapter Review and Self Test Problem 465
Answer to Chapter Review and Self Test Problem 465
Critical Thinking and Concepts Review 465
Questions and Problems 468
What s On the Web? 468
SHORT TERM FINANCIAL MANAGEMENT
CHAPTER 16
Short Term Financial Planning
16.1 Tracing Cash and Net Working Capital 472
16.2 The Operating Cycle and the Cash Cycle 474
Defining the Operating and Cash Cycles 474
The Operating Cycle 474
The Cash Cycle 475
The Operating Cycle and the Firm s Organizational
Chart 476
Calculating the Operating and Cash Cycles 476
The Operating Cycle 477
The Cash Cycle 478
Interpreting the Cash Cycle 479
16.3 Some Aspects of Short Term Financial Policy 481
The Size of the Firm s Investment in Current
Assets 481
Alternative Financing Policies for Current Assets 482
Which Financing Policy Is Best? 484
Current Assets and Liabilities in Practice 485
16.4 The Cash Budget 486
Sales and Cash Collections 487
Cash Outflows 488
The Cash Balance 488
16.5 Short Term Borrowing 489
Unsecured Loans 489
Secured Loans 490
Accounts Receivable Financing 490
Inventory Loans 491
Other Sources 491
16.6 A Short Term Financial Plan 491
Summary and Conclusions 492
Chapter Review and Self Test Problems 493
Answers to Chapter Review and Self Test
Problems 494
Critical Thinking and Concepts Review 495
Questions and Problems 495
What s On the Web? 501
CHAPTER 17
Working Capital Management
17.1 Float and Cash Management 503
Reasons for Holding Cash 503
The Speculative and Precautionary Motives 503
The Transaction Motive 503
Benefits of Holding Cash 504
Understanding Float 504
Disbursement Float 504
Collection Float and Net Float 505
Float Management 506
Ethical and Legal Questions 506
Electronic Data Interchange: The End of Float? 506
17.2 Cash Management: Collection, Disbursement, and
Investment 507
Cash Collection and Concentration 507
Components of Collection Time 507
Cash Collection 507
Lockboxes 508
Cash Concentration 509
Managing Cash Disbursements 509
Increasing Disbursement Float 509
Controlling Disbursements 510
Investing Idle Cash 511
Temporary Cash Surpluses 511
Characteristics of Short Term Securities 512
Some Different Types of Money Market Securities 513
17.3 Credit and Receivables 513
Components of Credit Policy 514
Terms of the Sale 514
The Basic Form 514
The Credit Period 515
Cash Discounts 516
Credit Instruments 517
Optimal Credit Policy 517
The Total Credit Cost Curve 518
Organizing the Credit Function 519
Credit Analysis 519
Credit Information 519
Credit Evaluation and Scoring 519
Collection Policy 520
Monitoring Receivables 520
Collection Effort 521
17.4 Inventory Management 521
The Financial Manager and Inventory Policy 521
Inventory Types 522
Inventory Costs 523
17.5 Inventory Management Techniques 524
The ABC Approach 524
The Economic Order Quantity Model 524
Inventory Depletion 524
The Carrying Costs 526
The Shortage Costs 526
The Total Costs 526
Extensions to the EOQ Model 528
Safety Stocks 528
Reorder Points 529
Managing Derived Demand Inventories 530
Materials Requirements Planning 530
Just in Time Inventory 530
Summary and Conclusions 531
Chapter Review and Self Test Problems 531
Answers to Chapter Review and Self Test
Problems 531
Critical Thinking and Concepts Review 532
Questions and Problems 534
What s On the Web? 536
TOPICS IN BUSINESS FINANCE
CHAPTER 18
International Aspects of
Financial Management
18.1 Terminology 538
18.2 Foreign Exchange Markets and Exchange Rates 539
Exchange Rates 540
Exchange Rate Quotations 540
Cross Rates and Triangle Arbitrage 542
Types of Transactions 543
18.3 Purchasing Power Parity 544
Absolute Purchasing Power Parity 545
Relative Purchasing Power Parity 546
The Basic Idea 546
The Result 546
Currency Appreciation and Depreciation 548
18.4 Exchange Rates and Interest Rates 549
Covered Interest Arbitrage 549
Interest Rate Parity 550
18.5 Exchange Rate Risk 551
Short Run Exposure 551
Long Run Exposure 552
Translation Exposure 552
Managing Exchange Rate Risk 553
18.6 Political Risk 554
Summary and Conclusions 554
Chapter Review and Self Test Problems 555
List of Boxes
chapter 1 The Costs of Unethical Conduct 11
Fight! 15
chapter 2 A Bitter Pill for McKesson s Stockholders 28
chapter 3 Growing Broke: A By the Book Case? 64
What Financial Statements Don t Tell You 73
chapter 4 A Quack Investment? 101
chapter 5 Jackpot! 118
An Unwelcome Christmas Present 140
chapter 6 Exotic Bonds 174
chapter 7 Play with the Pros 207
chapter 9 When Things Go Wrong .. . 273
chapter 10 The Super Guide to Investing 310
Can the Pros Beat the Market? 314
chapter 11 Beta, Beta, Who s Got the Beta? 340
chapter 12 EVA: An Old Idea Moves into the Modern Age 371
chapter 13 Bankruptcy, Prepack Style 411
chapter 14 Stock Buybacks: The Good, the Bad, and the Ugly 433
chapter 15 IPO Underpricing around the World 455
The (Mis) Pricing of Palm, Inc. 457
Anatomy of an IPO 461
chapter 16 Cash Cycle Competition 480
chapter 17 Inventory Management: From Razors to Gasoline 522
chapter 18 McPricing 547
XXXii CONTENTS
Answers to Chapter Review and Self Test
Problems 555
Critical Thinking and Concepts Review 556
Questions and Problems 557
What s On the Web? 559
APPENDICES
A Mathematical Tables 560
B Key Equations 568
C Answers to Selected End of Chapter Problems 571
D Using the HP 1 OB and Tl BAII Plus Financial
Calculators 574
Glossary 577
Name Index 583
Subject Index 584
|
| any_adam_object | 1 |
| author | Ross, Stephen A. 1944-2017 Westerfield, Randolph Jordan, Bradford D. |
| author_GND | (DE-588)128781408 (DE-588)121792250 |
| author_facet | Ross, Stephen A. 1944-2017 Westerfield, Randolph Jordan, Bradford D. |
| author_role | aut aut aut |
| author_sort | Ross, Stephen A. 1944-2017 |
| author_variant | s a r sa sar r w rw b d j bd bdj |
| building | Verbundindex |
| bvnumber | BV019308591 |
| callnumber-first | H - Social Science |
| callnumber-label | HG4026 |
| callnumber-raw | HG4026 |
| callnumber-search | HG4026 |
| callnumber-sort | HG 44026 |
| callnumber-subject | HG - Finance |
| classification_rvk | QP 700 |
| ctrlnum | (OCoLC)50755170 (DE-599)BVBBV019308591 |
| dewey-full | 658.15 |
| dewey-hundreds | 600 - Technology (Applied sciences) |
| dewey-ones | 658 - General management |
| dewey-raw | 658.15 |
| dewey-search | 658.15 |
| dewey-sort | 3658.15 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Wirtschaftswissenschaften |
| edition | 4. ed., internat. ed. |
| format | Book |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>02190nam a2200517 c 4500</leader><controlfield tag="001">BV019308591</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="005">20120621 </controlfield><controlfield tag="007">t|</controlfield><controlfield tag="008">040527s2004 xxud||| |||| 00||| eng d</controlfield><datafield tag="020" ind1=" " ind2=" "><subfield code="a">0071215077</subfield><subfield code="9">0-07-121507-7</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)50755170</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)BVBBV019308591</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield><subfield code="e">rakwb</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="044" ind1=" " ind2=" "><subfield code="a">xxu</subfield><subfield code="c">US</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-573</subfield></datafield><datafield tag="050" ind1=" " ind2="0"><subfield code="a">HG4026</subfield></datafield><datafield tag="082" ind1="0" ind2=" "><subfield code="a">658.15</subfield><subfield code="2">21</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">QP 700</subfield><subfield code="0">(DE-625)141926:</subfield><subfield code="2">rvk</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Ross, Stephen A.</subfield><subfield code="d">1944-2017</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)128781408</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Essentials of corporate finance</subfield><subfield code="c">Stephen A. Ross ; Randolph W. Westerfield ; Bradford D. Jordan</subfield></datafield><datafield tag="250" ind1=" " ind2=" "><subfield code="a">4. ed., internat. ed.</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">Boston [u.a.]</subfield><subfield code="b">McGraw-Hill Irwin</subfield><subfield code="c">2004</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">XXXII, 592 S.</subfield><subfield code="b">graph. Darst.</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">n</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">nc</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="490" ind1="0" ind2=" "><subfield code="a">The McGraw-Hill/Irwin series in finance, insurance and real estate</subfield></datafield><datafield tag="500" ind1=" " ind2=" "><subfield code="a">5. Aufl. u.d.T.: Ross, Stephen A.: Corporate finance: essentials</subfield></datafield><datafield tag="520" ind1="3" ind2=" "><subfield code="a">Examples are drawn from every aspect of business, not just corporate finance and help is given at every turn to help you look like a finance major come test time.</subfield></datafield><datafield tag="650" ind1=" " ind2="7"><subfield code="a">Administração financeira</subfield><subfield code="2">larpcal</subfield></datafield><datafield tag="650" ind1=" " ind2="7"><subfield code="a">Bedrijfsfinanciering</subfield><subfield code="2">gtt</subfield></datafield><datafield tag="650" ind1=" " ind2="7"><subfield code="a">Finanças das empresas</subfield><subfield code="2">larpcal</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Corporations</subfield><subfield code="x">Finance</subfield></datafield><datafield tag="650" ind1="0" ind2="7"><subfield code="a">Finanzierung</subfield><subfield code="0">(DE-588)4017182-6</subfield><subfield code="2">gnd</subfield><subfield code="9">rswk-swf</subfield></datafield><datafield tag="650" ind1="0" ind2="7"><subfield code="a">Corporate Finance</subfield><subfield code="0">(DE-588)4269795-5</subfield><subfield code="2">gnd</subfield><subfield code="9">rswk-swf</subfield></datafield><datafield tag="655" ind1=" " ind2="7"><subfield code="0">(DE-588)4123623-3</subfield><subfield code="a">Lehrbuch</subfield><subfield code="2">gnd-content</subfield></datafield><datafield tag="689" ind1="0" ind2="0"><subfield code="a">Finanzierung</subfield><subfield code="0">(DE-588)4017182-6</subfield><subfield code="D">s</subfield></datafield><datafield tag="689" ind1="0" ind2=" "><subfield code="5">DE-604</subfield></datafield><datafield tag="689" ind1="1" ind2="0"><subfield code="a">Corporate Finance</subfield><subfield code="0">(DE-588)4269795-5</subfield><subfield code="D">s</subfield></datafield><datafield tag="689" ind1="1" ind2=" "><subfield code="C">b</subfield><subfield code="5">DE-604</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Westerfield, Randolph</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)121792250</subfield><subfield code="4">aut</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Jordan, Bradford D.</subfield><subfield code="e">Verfasser</subfield><subfield code="4">aut</subfield></datafield><datafield tag="856" ind1="4" ind2="2"><subfield code="m">HBZ Datenaustausch</subfield><subfield code="q">application/pdf</subfield><subfield code="u">http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=012776507&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA</subfield><subfield code="3">Inhaltsverzeichnis</subfield></datafield><datafield tag="943" ind1="1" ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-012776507</subfield></datafield></record></collection> |
| genre | (DE-588)4123623-3 Lehrbuch gnd-content |
| genre_facet | Lehrbuch |
| id | DE-604.BV019308591 |
| illustrated | Illustrated |
| indexdate | 2024-12-20T11:57:43Z |
| institution | BVB |
| isbn | 0071215077 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-012776507 |
| oclc_num | 50755170 |
| open_access_boolean | |
| owner | DE-573 |
| owner_facet | DE-573 |
| physical | XXXII, 592 S. graph. Darst. |
| publishDate | 2004 |
| publishDateSearch | 2004 |
| publishDateSort | 2004 |
| publisher | McGraw-Hill Irwin |
| record_format | marc |
| series2 | The McGraw-Hill/Irwin series in finance, insurance and real estate |
| spellingShingle | Ross, Stephen A. 1944-2017 Westerfield, Randolph Jordan, Bradford D. Essentials of corporate finance Administração financeira larpcal Bedrijfsfinanciering gtt Finanças das empresas larpcal Corporations Finance Finanzierung (DE-588)4017182-6 gnd Corporate Finance (DE-588)4269795-5 gnd |
| subject_GND | (DE-588)4017182-6 (DE-588)4269795-5 (DE-588)4123623-3 |
| title | Essentials of corporate finance |
| title_auth | Essentials of corporate finance |
| title_exact_search | Essentials of corporate finance |
| title_full | Essentials of corporate finance Stephen A. Ross ; Randolph W. Westerfield ; Bradford D. Jordan |
| title_fullStr | Essentials of corporate finance Stephen A. Ross ; Randolph W. Westerfield ; Bradford D. Jordan |
| title_full_unstemmed | Essentials of corporate finance Stephen A. Ross ; Randolph W. Westerfield ; Bradford D. Jordan |
| title_short | Essentials of corporate finance |
| title_sort | essentials of corporate finance |
| topic | Administração financeira larpcal Bedrijfsfinanciering gtt Finanças das empresas larpcal Corporations Finance Finanzierung (DE-588)4017182-6 gnd Corporate Finance (DE-588)4269795-5 gnd |
| topic_facet | Administração financeira Bedrijfsfinanciering Finanças das empresas Corporations Finance Finanzierung Corporate Finance Lehrbuch |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=012776507&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT rossstephena essentialsofcorporatefinance AT westerfieldrandolph essentialsofcorporatefinance AT jordanbradfordd essentialsofcorporatefinance |