Fundamentals of Corporate Finance, International Adaptation - Adaptatio

Fundamentals of Corporate Finance develops the key concepts of corporate finance with an intuitive approach while emphasizing computational skills. Presenting the topics in a logical and stepped-out manner, this book helps students develop an understanding of key financial concepts while also enabling them to develop the critical judgments necessary to apply financial tools in real-world decision-making situations. It offers a level of rigor that is appropriate for both business and finance majors and yet presents the content in a manner that students find accessible.
 
This International Adaptation includes new examples to help students better understand how to analyze the ethical dilemmas in business. In addition, select chapters include a new feature called Corporate Finance at Work which provides a broader perspective of the content covered in the chapter. Finally, to address the global context in which firms now operate, this edition adds to the discussion on international financial management by including sections on international accounting issues and Islamic finance.

List of contents

1 The Financial Manager and the Firm
 
1.1 The Role of the Financial Manager
 
1.2 Forms of Business Organization
 
1.3 Managing the Financial Function
 
1.4 The Goal of the Firm
 
1.5 Agency Conflicts: Separation of Ownership and Control
 
1.6 The Importance of Ethics in Culture
 
Summary of Learning Objectives/Self-Study Problems/
 
Solutions to Self-Study Problems/Discussion Questions/
 
Questions and Problems/Sample Test Problems
 
Ethics Case--Incentives and Ethics: Cross-Selling at Wells Fargo
 

2 The Financial System and the Level of Interest Rates
 
2.1 The Financial System
 
2.2 Direct Financing
 
2.3 Types of Financial Markets
 
2.4 Market Efficiency
 
2.5 Financial Institutions and Indirect Financing
 
2.6 The Determinants of Interest Rate Levels
 
Summary of Learning Objectives/Summary of Key
 
Equations/Self-Study Problems/Solutions to Self-Study
 
Problems/Discussion Questions/Questions and Problems/
 
Sample Test Problems
 

 
3 Financial Statements, Cash Flows, and Taxes
 
3.1 Financial Statements and Accounting Principles
 
3.2 The Balance Sheet
 
3.3 Market Value versus Book Value
 
3.4 The Income Statement and the Statement of Retained Earnings
 
3.5 The Statement of Cash Flows
 
3.6 Tying Together the Financial Statements
 
3.7 International Accounting Issues
 
3.8 Corporate Income Tax
 
Summary of Learning Objectives/Summary of Key
 
Equations/Self-Study Problems/Solutions to Self-Study
 
Problems/Discussion Questions/Questions and Problems/
 
Sample Test Problems
 

 

4 Analyzing Financial Statements
 
4.1 Background for Financial Statement Analysis
 
4.2 Common-Size Financial Statements
 
4.3 Financial Ratios and Firm Performance
 
4.4 The Dupont System: A Diagnostic Tool
 
4.5 Selecting a Benchmark
 
4.6 Using Financial Ratios
 
Summary of Learning Objectives/Summary of Key
 
Equations/Self-Study Problems/Solutions to Self-Study
 
Problems/Discussion Questions/Questions and Problems/
 
Sample Test Problems
 
Ethics Case--A Sad Tale: The Demise of Arthur Andersen
 

5 The Time Value of Money
 
5.1 The Time Value of Money
 
5.2 Future Value and Compounding
 
5.3 Present Value and Discounting
 
5.4 Additional Concepts and Applications
 
Summary of Learning Objectives/Summary of Key
 
Equations/Self-Study Problems/Solutions to Self-Study
 
Problems/Discussion Questions/Questions and Problems/
 
Sample Test Problems
 

 
6 Discounted Cash Flows and Valuation
 
6.1 Multiple Cash Flows
 
6.2 Level Cash Flows: Annuities
 
6.3 Level Cash Flows: Perpetuities
 
6.4 Cash Flows That Grow at a Constant Rate
 
6.5 The Effective Annual Interest Rate
 
Summary of Learning Objectives/Summary of Key
 
Equations/Self-Study Problems/Solutions to Self-Study
 
Problems/Discussion Questions/Questions and Problems/
 
Sample Test Problems/Appendix: Deriving the Formula for
 
the Present Value of an Ordinary Annuity/Problem
 
Ethics Case--Buy It on Credit and Be True to Your University
 

7 Risk and Return
 
7.1 Risk and Return
 
7.2 Holding Period Returns
 
7.3 Expected Returns
 
7.4 Variance and Standard Deviation as Measures of Risk
 
7.5 Arithmetic Average and Geometric (Compounded) Average R

Summary

Fundamentals of Corporate Finance develops the key concepts of corporate finance with an intuitive approach while emphasizing computational skills. Presenting the topics in a logical and stepped-out manner, this book helps students develop an understanding of key financial concepts while also enabling them to develop the critical judgments necessary to apply financial tools in real-world decision-making situations. It offers a level of rigor that is appropriate for both business and finance majors and yet presents the content in a manner that students find accessible.

This International Adaptation includes new examples to help students better understand how to analyze the ethical dilemmas in business. In addition, select chapters include a new feature called Corporate Finance at Work which provides a broader perspective of the content covered in the chapter. Finally, to address the global context in which firms now operate, this edition adds to the discussion on international financial management by including sections on international accounting issues and Islamic finance.

Product details

• Authors: Thomas Bates, Thomas et Bates, Thomas W. Bates, Stuart L. Gillan, Gillan Stuart L., David S Kidwell, David S. Kidwell, Kidwell David S., Parrino, Robert Parrino, Robert (University of Texas Parrino, Robert Kidwell Parrino, Parrino Robert
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Paperback / Softback
• Released: 30.06.2022
• EAN: 9781119795445
• ISBN: 978-1-119-79544-5
• No. of pages: 848
• Subjects: Social sciences, law, business > Business > Business administration; Rechnungswesen, Accounting, Corporate Finance, Finance and accounting