1 Table of Contents
Chapter 1 – Introduction of Finance
Glossary of Key Terms
Introducing Finance
Goals of Financial Management
Trends and Issues in Finance
Ethics: An Overview
Corporate Governance
Agency and Conflicts of Interest
Asset Classes
Financial Markets
Review Questions
Video Activity
Chapter 2 – Financial Statements
Glossary of Key Terms
Introducing Financial Statements
The Income Statement
The Balance Sheet
Tax Considerations
Other Statements
Review Questions
Chapter 3 – Financial Ratio Analysis
Glossary of Key Terms
Standardizing Financial Statements
Overview of Ratio Analysis
Profitability Ratios
Asset Management Ratios
Debt Management Ratios
Market Value Ratios
The DuPont Equation, ROE, ROA, and Growth
Using Financial Ratios for Analysis
Considering Inflation’s Distortionary Effects
Liquidity Ratios
Other Distortions
Review Questions
Review Problems
Video Activity
Chapter 4 – Financial Forecasting
Glossary of Key Terms
The Importance of Forecasting
Forecasting Sales
Pro Forma Financials
Generating the Complete Forecast
Forecasting Cash Flow and Assessing the Value of Growth
Using Excel to Create the Long-Term Forecasting
Review Questions
Review Problems
Video Activity
Chapter 5 – Capital Markets and Operating and Financial Leverage
Glossary of Key Terms
The Security Markets
Understanding Returns
Market Regulation
Market Efficiency
Introducing Capital Structure
Capital Structure Considerations
Understanding the Bankruptcy Process
Thinking About Operating Leverage
Thinking About Financial Leverage
Chapter 6 – How Companies Raise Capital
The Basics of the Cost of Capital
Valuing Different Costs
Approaches to Calculating the Cost of Capital
The WACC
Review Questions
Review Problems
Video Activity
Chapter 7 – Bond and Bond Valuation
Glossary of Key Terms
The Basics of Interest Rates
Additional Detail on Interest Rates
Key Characteristics of Bonds
Understanding Bonds
Advantages and Disadvantages of Bonds
Types of Bonds
Bond Markets
Valuing Bonds
Bond Risk
Leasing
Review Questions
Review Problems
Chapter 8 – Stock and Stock Valuation
Glossary of Key Terms
Defining Stock
Types of Stock
Rules and Rights of Common and Preferred Stock
Stock Markets
Stock Valuation
Valuing the Corporation
Review Questions
Review Problems
Video Activity
Chapter 9 – Time Value of Money
Glossary of Key Terms (Part I)
Glossary of Key Terms (Part II)
Introduction to the Time Value of Money
Future Value, Single Amount
Present Value, Single Amount
Annuities
Valuing Multiple Cash Flows
Additional Detail on Present and Future Values
Yield
Review Questions (Part I)
Review Problems (Part I)
Review Problems (Part II)
Video Activity
Chapter 10 – Capital Budgeting Techniques
Glossary of Key Terms
Introduction to Capital Budgeting
The Payback Method
Internal Rate of Return
Net Present Value
Cash Flow Analysis and Other Factors
Review Questions
Review Problems
Video Activity
Chapter 11 – Risk, Return, and the CAPM
The Relationship Between Risk and Capital Budgeting
Assessing Stand-Alone Risk
Risk and Return
Chapter 12 – Risk Management and the Financial Manager
The Importance of Risk Management
Commodity Price Risk
Exchange Rates and Risk
Interest Rate Risk
Reviews Questions
Review Problems
Video Activity
Chapter 13 – Investment Banking (Public and Private Placement)
Glossary of Key Terms
Reasons for Business Combinations
Types of Transactions
Preparing for a Merger
The Role of Investment Bankers
Additional Topics in Mergers and Acquisitions
Review Questions
Video Activity
Chapter 14 – Corporate Structure and Governance
Glossary of Key Terms
Business Structures
Relationship Between Shareholders and Company Management
Roles of the Board of Directors
Agency Issues: Shareholders and Corporate Bonds
Interacting with Investors, Intermediaries, and Other Market Participants
Review Questions
Video Activity
Chapter 15 – Financial Management Outside of the U.S.
Types of International Business
The International Business Environment
Factors Impacting Exchange Rates
Types of Rates and Transactions
Managing Exchange Risk
International Investment and Finance
