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Table of Contents

    • About the Authors
    • Acknowledgements
    • Dedication
    • Preface
    • 1Why Finance?
      • 1.1Finance in the World
      • 1.2Finance in Business
      • 1.3The Role of a Financial Manager
      • 1.4End-of-Chapter Exercises
    • 2Ethics and Finance

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      • 2.1Ethics Foundations

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      • 2.2Ethics in Finance

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      • 2.3Ethics in Management

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      • 2.4International Considerations

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      • 2.5The Bigger Picture

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      • 2.6End-of-Chapter Exercises

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    • 3Financial Statements

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      • 3.1The Income Statement

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      • 3.2The Balance Sheet

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      • 3.3The Cash Flow Statement

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      • 3.4Other Statements

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      • 3.5Taxes

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      • 3.6Cash Flow

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      • 3.7Ratio Analysis

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      • 3.8DuPont Analysis and Comparisons

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      • 3.9Worked Problems: Niks 2 Inc.

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      • 3.10The Bigger Picture

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      • 3.11End-of-Chapter Exercises

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    • 4Pro Forma Statements

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      • 4.1Pro Forma Income Statement

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      • 4.2Pro Forma Balance Sheet

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      • 4.3Assessment of Pro Forma Statements

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      • 4.4The Bigger Picture

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      • 4.5End-of-Chapter Problems

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    • 5Time Value of Money: One Cash Flow

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      • 5.1Present Value and Future Value

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      • 5.2Principal and Interest

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      • 5.3Simple Interest

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      • 5.4Compound Interest

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      • 5.5Solving Compound Interest Problems

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      • 5.6Effective Interest Rates

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      • 5.7End-of-Chapter Problems

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    • 6Time Value of Money: Multiple Flows

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      • 6.1Multiple Cash Flows

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      • 6.2Perpetuities

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      • 6.3Annuities

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      • 6.4Loan Amortization

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      • 6.5The Bigger Picture

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      • 6.6End-of-Chapter Problems

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    • 7Securities Markets

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      • 7.1Financial Environment: Institutions and Markets

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      • 7.2Regulation of Financial Institutions

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      • 7.3Modern History of Financial Crises

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      • 7.4Types of Financial and Other Traded Assets

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      • 7.5The Bigger Picture

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      • 7.6End-of-Chapter Problems

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    • 8Interest Rates and Bond Valuation

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      • 8.1Bonds and Interest Rates

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      • 8.2Credit Risk

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      • 8.3Bond Yield

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      • 8.4Bond Valuation

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      • 8.5The Bigger Picture

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      • 8.6End-of-Chapter Problems

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    • 9Stock Valuation

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      • 9.1Common and Preferred Stock

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      • 9.2Dividend Discount Model

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      • 9.3Market Multiples Approach

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      • 9.4Free Cash Flow Approach

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      • 9.5The Bigger Picture

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      • 9.6End-of-Chapter Problems

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    • 10Assessing Risk

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      • 10.1Risk and Return Basics

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      • 10.2Portfolios

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      • 10.3Market Efficiency

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      • 10.4Standard Deviation

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      • 10.5Market History

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      • 10.6The Capital Asset Pricing Model (CAPM)

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      • 10.7The Bigger Picture

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      • 10.8End-of-Chapter Problems

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    • 11Cost of Capital

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      • 11.1Cost of Capital Overview

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      • 11.2Cost of Debt

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      • 11.3Cost of Preferred Stock

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      • 11.4Cost of Common Stock

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      • 11.5Weighted Average Cost of Capital (WACC)

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      • 11.6WACC and Investment Decisions

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      • 11.7The Bigger Picture

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      • 11.8End-of-Chapter Problems

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    • 12Capital Budgeting Decision Making

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      • 12.1Introduction to Capital Budgeting Techniques

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      • 12.2Payback Period

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      • 12.3Net Present Value

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      • 12.4Internal Rate of Return

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      • 12.5Other Methods

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      • 12.6Comparing Projects with Unequal Lives

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      • 12.7Approaches for Dealing with Risk

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      • 12.8The Bigger Picture

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      • 12.9End-of-Chapter Problems

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    • 13Capital Budgeting Cash Flows

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      • 13.1Which Cash Flows Should I Include?

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      • 13.2Capital Spending and Salvage Value

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      • 13.3Operating Cash Flows

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      • 13.4Changes in Net Working Capital

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      • 13.5Making the Investment Decision

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      • 13.6The Bigger Picture

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      • 13.7End-of-Chapter Exercises

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    • 14Raising Capital and Capital Structure

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      • 14.1Life Cycle of a Firm

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      • 14.2Leverage

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      • 14.3Capital Structure

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      • 14.4Choosing the Optimal Capital Structure

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      • 14.5The Bigger Picture

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      • 14.6End-of-Chapter Exercises

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    • 15Dividend Policy

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      • 15.1Dividend Basics

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      • 15.2Dividend Policy

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      • 15.3Other Forms of Dividends

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      • 15.4The Bigger Picture

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      • 15.5End-of-Chapter Exercises

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    • 16Cash and the Cash Conversion Cycle

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      • 16.1Financial Planning

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      • 16.2Cash Budgets

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      • 16.3Net Working Capital Basics

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      • 16.4Cash Conversion Cycle

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      • 16.5The Bigger Picture

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      • 16.6End-of-Chapter Exercises

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    • 17Current Assets and Current Liabilities Management

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      • 17.1Inventory Management

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      • 17.2Accounts Receivable Management

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      • 17.3Cash Management and Investing Idle Cash

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      • 17.4Accounts Payable Management

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      • 17.5Accruals Management

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      • 17.6Short-Term Loans (Unsecured)

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      • 17.7Secured Uses of Funds

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      • 17.8The Bigger Picture

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      • 17.9End-of-Chapter Exercises

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    • 18International Considerations

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      • 18.1Multinational Corporations

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      • 18.2Taxes and Reporting

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      • 18.3Exchange Rates

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      • 18.4Other Risk Factors

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      • 18.5Investment Decisions

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      • 18.6The Bigger Picture

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      • 18.7End-of-Chapter Exercises

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    • 19Derivatives and Hedging

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      • 19.1Futures and Forwards

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      • 19.2Options

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      • 19.3Convertible Securities

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      • 19.4Hedging Risk

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      • 19.5The Bigger Picture

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      • 19.6End-of-Chapter Exercises

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    • 20Mergers, Acquisitions, and Divestitures

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      • 20.1Mergers and Acquisitions

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      • 20.2Leveraged Buyouts

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      • 20.3Reorganization and Bankruptcy

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      • 20.4The Bigger Picture

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      • 20.5End-of-Chapter Exercises

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    • AReview of Math Concepts

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      • A.1What do you know? Math Pre-Test

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      • A.2Review of Helpful Math Concepts

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      • A.3Review of Elementary Algebra

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      • A.4End-of-Chapter Assessment

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