Thư viện tri thức trực tuyến
Kho tài liệu với 50,000+ tài liệu học thuật
© 2023 Siêu thị PDF - Kho tài liệu học thuật hàng đầu Việt Nam
Fundamentals of Corporate Finance Phần 1 potx
Nội dung xem thử
Mô tả chi tiết
Selected material from
Fundamentals of Corporate Finance
Third Edition
Richard A. Brealey
Bank of England and London Business School
Stewart C. Myers
Sloan School of Management
Massachusetts Institute of Technology
Alan J. Marcus
Wallace E. Carroll School of Management
Boston College
with additional material from
Fundamentals of Corporate Finance, Alternate Fifth Edition
Essentials of Corporate Finance, Second Edition
Stephen A. Ross, Massachusetts Institute of Technology
Randolph W. Westerfield, University of Southern California
Bradford D. Jordan, University of Kentucky
UNIVERSITY OF PHOENIX
Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. Louis
Bangkok Bogotá Caracas Lisbon London Madrid
Mexico City Milan New Delhi Seoul Singapore Sydney Taipei Toronto
Selected material from
FUNDAMENTALS OF CORPORATE FINANCE, Third Edition
with additional material from
FUNDAMENTALS OF CORPORATE FINANCE, Alternate Fifth Edition
ESSENTIALS OF CORPORATE FINANCE, Second Edition
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a data base retrieval system, without prior written permission of the publisher.
This book contains select material from:
Fundamentals of Corporate Finance, Third Edition by Richard A. Brealey, Stewart C. Myers, and Alan J. Marcus. Copyright
© 2001, 1999, 1995, by The McGraw-Hill Companies, Inc.
Fundamentals of Corporate Finance, Alternate Fifth Edition by Stephen A. Ross, Randolph W. Westerfield, and Bradford D.
Jordan. Copyright © 2000, 1998, 1995, 1993, 1991 by The McGraw-Hill Companies, Inc.
Essentials of Corporate Finance, Second Edition by Stephen A. Ross, Randolph W. Westerfield, and Bradford D. Jordan.
Copyright © 1999 by The McGraw-Hill Companies, Inc. Previous edition © 1996 by Richard D. Irwin, a Times Mirror
Higher Education Group, Inc. company.
All reprinted with permission of the publisher.
ISBN 0-07-553109-7
Sponsoring Editor: Christian Perlee
Production Editor: Nina Meyer
iii
Contents
SECTION 1 1
How to Value Perpetuities 50
How to Value Annuities 51
Annuities Due 54
Future Value of an Annuity 57
Inflation and the Time Value of Money 61
Real versus Nominal Cash Flows 61
Inflation and Interest Rates 63
Valuing Real Cash Payments 65
Real or Nominal? 67
Effective Annual Interest Rates 67
Summary 69
Related Web Links 69
Key Terms 70
Quiz 70
Practice Problems 72
Challenge Problems 75
Solutions to Self-Test Questions 77
Minicase 79
Financial Planning 81
What Is Financial Planning? 82
Financial Planning Focuses on the Big Picture 83
Financial Planning Is Not Just Forecasting 84
Three Requirements for Effective Planning 84
Financial Planning Models 86
Components of a Financial Planning Model 87
An Example of a Planning Model 88
An Improved Model 89
Planners Beware 93
Pitfalls in Model Design 93
The Assumption in Percentage of Sales Models 94
The Role of Financial Planning Models 95
External Financing and Growth 96
Summary 100
Related Web Links 101
Key Terms 101
Quiz 101
Practice Problems 102
Challenge Problems 106
Solutions to Self-Test Questions 106
The Firm and the Financial
Manager 3
Organizing a Business 4
Sole Proprietorships 4
Partnerships 5
Corporations 5
Hybrid Forms of Business Organization 6
The Role of the Financial Manager 7
The Capital Budgeting Decision 8
The Financing Decision 9
Financial Institutions and Markets 10
Financial Institutions 10
Financial Markets 11
Other Functions of Financial Markets and
Institutions 12
Who Is the Financial Manager? 13
Careers in Finance 15
Goals of the Corporation 17
Shareholders Want Managers to Maximize
Market Value 17
Ethics and Management Objectives 19
Do Managers Really Maximize Firm Value? 21
Snippets of History 25
Summary 25
Related Web Links 28
Key Terms 28
Quiz 28
Practice Problems 29
Solutions to Self-Test Questions 31
The Time Value of Money 33
Future Values and Compound Interest 34
Present Values 38
Finding the Interest Rate 44
Multiple Cash Flows 46
Future Value of Multiple Cash Flows 46
Present Value of Multiple Cash Flows 49
Level Cash Flows: Perpetuities and Annuities 50
Financial Statement Analysis 133
Financial Ratios 134
Leverage Ratios 138
Liquidity Ratios 139
Efficiency Ratios 141
Profitability Ratios 143
The Du Pont System 145
Other Financial Ratios 146
Using Financial Ratios 147
Choosing a Benchmark 147
Measuring Company Performance 150
The Role of Financial Ratios 151
Summary 153
Related Web Links 155
Key Terms 155
Quiz 155
Practice Problems 157
Challenge Problem 158
Solutions to Self-Test Questions 159
Minicase 160
IV CONTENTS
Accounting and Finance 111
The Balance Sheet 112
Book Values and Market Values 115
The Income Statement 117
Profits versus Cash Flow 118
The Statement of Cash Flows 119
Accounting for Differences 121
Taxes 123
Corporate Tax 123
Personal Tax 125
Summary 126
Related Web Links 127
Key Terms 127
Quiz 127
Practice Problems 128
Challenge Problem 131
Solutions to Self-Test Questions 131
APPENDIX A 109
SECTION 2 163
Working Capital Management and
Short-Term Planning 165
Working Capital 167
The Components of Working Capital 167
Working Capital and the Cash Conversion Cycle 168
The Working Capital Trade-Off 171
Links between Long-Term and Short-Term
Financing 172
Tracing Changes in Cash and Working Capital 175
Cash Budgeting 177
Forecast Sources of Cash 177
Forecast Uses of Cash 179
The Cash Balance 179
A Short-Term Financing Plan 180
Options for Short-Term Financing 180
Evaluating the Plan 184
Sources of Short-Term Financing 185
Bank Loans 185
Commercial Paper 186
Secured Loans 186
The Cost of Bank Loans 187
Simple Interest 187
Discount Interest 188
Interest with Compensating Balances 189
Summary 190
Related Web Links 191
Key Terms 191
Quiz 191
Practice Problems 192
Challenge Problem 194
Solutions to Self-Test Questions 195
Minicase 197
Cash and Inventory Management 201
Cash Collection, Disbursement, and Float 202
Float 203
Valuing Float 204
CONTENTS V
Managing Float 205
Speeding Up Collections 206
Controlling Disbursements 209
Electronic Funds Transfer 210
Inventories and Cash Balances 211
Managing Inventories 212
Managing Inventories of Cash 215
Uncertain Cash Flows 216
Cash Management in the Largest Corporations 217
Investing Idle Cash: The Money Market 218
Summary 219
Related Web Links 220
Key Terms 220
Quiz 220
Practice Problems 221
Challenge Problem 224
Solutions to Self-Test Questions 224
Credit Management and Collection 227
Terms of Sale 229
Credit Agreements 231
Credit Analysis 232
Financial Ratio Analysis 233
Numerical Credit Scoring 233
When to Stop Looking for Clues 234
The Credit Decision 236
Credit Decisions with Repeat Orders 237
Some General Principles 238
Collection Policy 239
Bankruptcy 240
Bankruptcy Procedures 241
The Choice between Liquidation and
Reorganization 242
Summary 244
Related Web Links 245
Key Terms 245
Quiz 245
Practice Problems 246
Challenge Problems 248
Solutions to Self-Test Questions 249
Minicase 250
Valuing Bonds 255
Bond Characteristics 256
Reading the Financial Pages 257
Bond Prices and Yields 259
How Bond Prices Vary with Interest Rates 260
Yield to Maturity versus Current Yield 261
Rate of Return 265
Interest Rate Risk 267
The Yield Curve 268
Nominal and Real Rates of Interest 268
Default Risk 270
Valuations in Corporate Bonds 273
Summary 273
Related Web Links 274
Key Terms 274
Quiz 274
Practice Problems 275
Challenge Problems 277
Solutions to Self-Test Questions 277
Valuing Stocks 279
Stocks and the Stock Market 280
Reading the Stock Market Listings 281
Book Values, Liquidation Values, and Market
Values 283
Valuing Common Stocks 287
Today’s Price and Tomorrow’s Price 287
The Dividend Discount Model 288
Simplifying the Dividend Discount Model 291
The Dividend Discount Model with No Growth 291
The Constant-Growth Dividend Discount Model 292
Estimating Expected Rates of Return 293
Nonconstant Growth 295
Growth Stocks and Income Stocks 296
The Price-Earnings Ratio 298
What Do Earnings Mean? 298
Valuing Entire Businesses 301
Summary 301
Related Web Links 302
Key Terms 302
Quiz 302
Practice Problems 303
Challenge Problems 306
Solutions to Self-Test Questions 307
SECTION 3 253