Contemporary corporate finance:
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| Main Authors: | , , |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
[S.l.]
South-Western Cengage Learning
2009
|
| Edition: | 11. ed., internat. student ed. |
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | getr. Zählung Ill., graph. Darst. |
| ISBN: | 9780324657906 0324657900 |
Staff View
MARC
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| 100 | 1 | |a MacGuigan, James R. |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a Contemporary corporate finance |c James R. McGuigan ; William J. Kretlow ; R. Charles Moyer |
| 250 | |a 11. ed., internat. student ed. | ||
| 264 | 1 | |a [S.l.] |b South-Western Cengage Learning |c 2009 | |
| 300 | |a getr. Zählung |b Ill., graph. Darst. | ||
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| 700 | 1 | |a Moyer, R. Charles |e Verfasser |4 aut | |
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Record in the Search Index
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| adam_text | Brief Contents
Preface xiii
Part 1: Introduction
Chapter 1: The Role and Objective of Financial Management 2
Chapter 2: The Domestic and International Financial Marketplace 24
Appendix 2A: Taxes 51
Chapter 3: Evaluation of Financial Performance 56
Chapter 4: Financial Planning and Forecasting 100
Part 2: Determinants of Valuation___________________________
Chapter 5: The Time Value of Money 130
Appendix 5A: Continuous Compounding and Discounting 173
Chapter 6: Analysis of Risk and Return 176
Chapter 7: Fixed-Income Securities: Characteristics and Valuation 222
Chapter 8: Common Stock: Characteristics, Valuation, and Issuance 256
Part 3: The Capital Investment Decision______________________
Chapter 9: Capital Budgeting and Cash Flow Analysis 290
Appendix 9A: Depreciation 319
Chapter 10: Capital Budgeting: Decision Criteria and Real Option Considerations 324
Appendix 10A: Mutually Exclusive Investments Having Unequal Lives 361
Chapter 11: Capital Budgeting and Risk 366
Part 4: The Cost of Capital. Capital Structure, and Dividend Policy
Chapter 12: The Cost of Capital 396
Chapter 13: Capital Structure Concepts 432
Chapter 14: Capital Structure Management in Practice 462
Appendix 14A: Breakeven Analysis 497
Chapter 15: Dividend Policy 508
Part 5: Working Capital Management________________________
Chapter 16: Working Capital Policy and Short-Term Financing 540
Chapter 17: The Management of Cash and Marketable Securities 592
Chapter 18: The Management of Accounts Receivable and Inventories 622
Part 6: Additional Topics in Contemporary Corporate Finance____
Chapter 19: Lease and Intermediate-Term Financing 656
Chapter 20: Financing with Derivatives 686
Appendix 20A: The Black-Scholes Option Pricing Model 709
Appendix 20B: Bond Refunding Analysis 712
Chapter 21: Risk Management 716
Chapter 22: International Financial Management 732
Chapter 23: Corporate Restructuring 752
Reference Materials
Tables T-l
Glossary G-l
Solutions to Self-Test Problems S-l
Check Answers to Selected Problems C-l
Index 1-1
Contents
Preface xiii
Parti: Introduction
1 The Role and Objective of Financial
Management 2
Key Chapter Concepts 2
financial Challenge: Issues Confronting Financial
Managers 3
Introduction 4
Foundation Concept: Maximizing Shareholder
Wealth as the Primary Goal 5
Maximization of Shareholder Wealth: Managerial
Strategies 9
Forms of Business Organization 13
Ethical Issues: The Practice of Financial Management 14
Organization of the Financial Management
Function 17
Financial Management and Other Disciplines 19
Entrepreneurial Issues: Shareholder Wealth
Maximization 20
Career Opportunities in Finance 21
Professional Finance Affiliations and
Certifications 21
Summary 22
Questions and Topics for Discussion 23
2 The Domestic and International Financial
Marketplace 24
Key Chapter Concepts 24
Financial Challenge: Long- Term Capital
Management, L.P. 25
Introduction 26
Income Taxes and Financial Management 26
An Overview of the U.S. Financial System 27
The Structure and Operation of U.S. Security
Markets 32
The Global Economy and Multinational
Enterprises 34
Foreign Currency Markets and Exchange
Rates 35
Foundation Concept: Market Efficiency 40
Ethical Issues: Insider Trading 45
International Issues: Market Efficiency Outside
the United States 46
Foundation Concept: Holding
Period Returns 46
Summary 47
Questions and Topics for Discussion 48
Self-Test Problems 48
Problems 49
Appendix 2A: Taxes 51
Corporate Income Taxes 51
Entrepreneurial Issues: S Corporations 52
Questions and Topics for Discussion 53
Self-Test Problems 54
Problems 54
3 Evaluation of Financial Performance 56
Key Chapter Concepts 56
Financial Challenge: The Glitter at Tiffany s 57
Introduction 57
Use of Financial Analysis 58
Interpreting Financial Ratios 58
Basic Classifications of Financial Ratios 59
Summary of Financial Ratio Analysis 72
Trend Analysis 73
Analysis of Profitability: Return on Investment 73
Foundation Concept: Analyzing Profitability
Through Return on Stockholders Equity 78
Sources of Comparative Financial Data 78
A Word of Caution About Financial
Ratio Analysis 79
Earnings and Balance Sheet Quality and
Financial Analysis 80
Ethical Issues: The Sarbanes-Oxley Act and the Financial
Reporting Process 83
Market Value Added: An Alternative Measure of
Performance 83
International Issues: Financial Analysis of Multinational
Corporations 86
Inflation and Financial Statement Analysis 86
Summary 87
Questions and Topics for Discussion 89
Self-Test Problems 89
Problems 91
VI
4 Financial Planning and
Forecasting 100
Key Chapter Concepts 100
Financial Challenge: Financial Forecasting in
the Telecom Industry: What Went Wrong? 101
Introduction 102
Financial Planning 102
Foundation Concept: Cash Flow Analysis 103
Financial Forecasting 111
Summary 121
Questions and Topics for Discussion 122
Self-Test Problems 123
Problems 124
Part 2: Determinants of Valuation
5 The Time Value of Money 130
Key Chapter Concepts 130
Financial Challenge: The Powerball Winner s
Dilemma 131
Introduction 131
The Use of Financial Calculators and
Spreadsheets 132
Interest 134
Simple Interest 134
Compound Interest and Future
Value 136
Present Value 140
Annuities 143
Present Value: Some Additional Cash Flow
Patterns 153
Compounding Periods and Effective
Interest Rates 157
Solving the Financial Challenge 160
Foundation Concept: Net Present
Value Rule 160
Summary 161
Questions and Topics for Discussion 162
Self-Test Problems 164
Problems 164
Integrative Case Problem: Time Value of
Money 171
Appendix 5A: Continuous Compounding
and Discounting 173
Continuous Compounding 173
Continuous Discounting 173
Effective Rate Calculations 174
Self-Test Problems 174
Problems 174
6 Analysis of Risk and Return 176
Key Chapter Concepts 176
Financial Challenge: Risk and Return on Ford and
General Motors Common Stock 177
Introduction 178
Meaning and Measurement of Risk 178
Foundation Concept: Relationship Between Risk
and Return 185
Investment Diversification and Portfolio Risk
Analysis 192
Portfolio Risk and the Capital Asset
Pricing Model 200
International Issues: Diversification and Multinational
Corporations 209
Ethical Issues: High-Risk Securities 210
Other Dimensions of Risk 211
Summary 212
Questions and Topics for Discussion 213
Self-Test Problems 215
Problems 216
7 Fixed-Income Securities: Characteristics
and Valuation 222
Key Chapter Concepts 222
Financial Challenge: General Motors (GM)
Debt Falls Deeper into Junk Territory 223
Introduction 224
Characteristics of Long-Term Debt 224
International Issues: The International Bond Market 236
Bond Valuation 239
Ethical Issues: Leveraged Buyouts and Bond Values 244
Characteristics of Preferred Stock 245
Summary 249
Questions and Topics for Discussion 250
Self-Test Problems 251
Problems 252
vii
8 Common Stock: Characteristics, Valuation,
and Issuance 256
Key Chapter Concepts 256
Financial Challenge: Google Goes Public 257
Introduction 258
Characteristics of Common Stock 258
Ethical Issues: Unequal Voting Rights 263
The Security Offering Process: Role of the
Investment Banker 265
Foundation Concept: Valuation of Common
Stock 271
International Issues: Global Equity Markets 273
Applications of the General Dividend
Valuation Model 275
Entrepreneurial Issues: Valuation of Closely Held Firms 278
Summary 280
Questions and Topics for Discussion 281
Self-Test Problems 282
Problems 283
Part 3: The Capital Investment Decision
9 Capital Budgeting and Cash Flow
Analysis 290
Key Chapter Concepts 290
Financial Challenge: Chrysler s Bet on Flexibility 291
Introduction 292
Key Terms and Concepts in Capital
Budgeting 293
Basic Framework for Capital Budgeting 294
Generating Capital Investment Project
Proposals 295
Foundation Concept: Principles of Estimating
Cash Flows 297
Net Investment (NINV) 299
Net (Operating) Cash Flows 300
Asset Expansion Projects 304
Asset Replacement Projects 306
Problems in Cash Flow Estimation 308
The Practice of Cash Flow Estimation for
Capital Budgeting 310
Ethical Issues: Cash Flow Estimation Biases 311
Summary 312
Questions and Topics for Discussion 312
Self-Test Problems 313
Problems 314
Appendix 9A: Depreciation 319
Introduction to Depreciation 319
Straight-Line Depreciation 319
Modified Accelerated Cost Recovery
System (MACRS) 320
Real Property 322
Questions and Topics for Discussion 322
Problems 323
10 Capital Budgeting: Decision Criteria and
Real Option Considerations 324
Key Chapter Concepts 324
Financial Challenge: Airbus Challenges the
Boeing 787 Dreamliner 325
Introduction 325
Foundation Concept: Decision Models for
Evaluating Alternatives 326
Capital Rationing and the Capital Budgeting
Decision 338
Reviewing and Post-Auditing an Accepted
Project 341
A Comprehensive Example of Capital Budgeting:
Opening a New Bank Branch 342
International Issues: A Framework for International Capital
Expenditure Decisions 344
Entrepreneurial Issues: Capital Budgeting 346
Inflation and Capital Expenditures 346
Real Options in Capital Budgeting 347
Ethical Issues: The Use of Shareholder Resources 348
Summary 351
Questions and Topics for Discussion 351
Self-Test Problems 352
Problems 353
Integrative Case Problem: Capital Budgeting 360
Appendix 10A: Mutually Exclusive Investments
Having Unequal Lives 361
Replacement Chains 361
Equivalent Annual Annuities 363
Problems 364
viii
11 Capital Budgeting and Risk 366
Key Chapter Concepts 366
Financial Challenge: Boeing Makes a Gutsy Decision 367
Introduction 368
Total Project Risk Versus Portfolio Risk 368
Adjusting for Total Project Risk 369
Adjusting for Beta Risk in Capital Budgeting 378
International Issues: Special Elements of Capital
Budgeting Risk 380
Ethical Issues: Johnson Johnson and Proprietary
Competitive Information 381
Summary 384
Questions and Topics for Discussion 384
Self-Test Problems 385
Problems 386
Integrative Case Problem: Capital Budgeting and
Risk Analysis 393
Part 4: The Cost of Capital, Capital
Structure, and Dividend Policy
12 The Cost of Capital 396
Key Chapter Concepts 396
Financial Challenge: Cost of Equity Capital for
Mountain Fuel Supply Company 397
Introduction 398
Summary of Notation 399
Foundation Concept: Weighted Cost of Capital 399
Relative Costs of Capital 402
Computing the Component Costs of Capital 403
Divisional Costs of Capital 412
Determining the Weighted (Marginal) Cost of
Capital Schedule 414
International Issues: The Cost of Capital for
Multinational Companies 416
Determining the Optimal Capital Budget 417
Entrepreneurial Issues: The Cost of Capital 418
Cost of Depreciation-Generated Funds 419
Summary 420
Questions and Topics for Discussion 421
Self-Test Problems 421
Problems 422
Integrative Case Problem: Cost of Capital 430
13 Capital Structure Concepts 432
Key Chapter Concepts 432
Financial Challenge: Optimal Capital Structure in the
Airline Industry: American Airlines Versus Soutliwest
Airlines 433
Introduction 434
Capital Structure Decisions and Maximization of
Shareholder Wealth 435
Foundation Concept: Business Risk 435
Foundation Concept: Financial Risk and Financial
Leverage 437
Capital Structure Theory 440
Ethical Issues: LBO Stakeholder Impacts 453
International Issues: Capital Structure 454
Summary 455
Questions and Topics Jor Discussion 456
Self Test Problem 456
Problems 457
14 Capital Structure Management in
Practice 462
Key Chapter Concepts 462
Financial Challenge: A Significant Deleveraging of
AT T s Balance Sheet 463
Introduction 464
Operating and Financial Leverage 464
Other Financial Risk Measures 473
EBIT-EPS Analysis 474
Cash Insolvency Analysis 480
Other Factors to Consider in Making Capital
Structure Decisions 483
International Issues: Balancing Operating and
Financial Risks at Nestle 484
Summary 485
Questions and Topics for Discussion 486
Self-Test Problems 487
Problems 488
Appendix 14A: Breakeven Analysis 497
Introduction 497
Graphic Breakeven Analysis 497
Algebraic Breakeven Analysis 498
Breakeven Analysis and Risk Assessment 502
Some Limitations of Breakeven Analysis 502
IX
Cash Breakeven Point 504
Questions and Topics for Discussion 505
Self-Test Problems 505
Problems 506
15 Dividend Policy 508
Key Chapter Concepts 508
Financial Challenge: Cisco Systems Shareholders
Reject a Dividend Payout Proposal 509
Introduction 509
Determinants of Dividend Policy 511
Dividend Policy and Firm Value 517
Dividend Policies 520
Entrepreneurial Issues: Dividend Policy 523
How Dividends Are Paid 524
International Issues: Dividend Policies for
Multinational Firms 526
Stock Dividends and Stock Splits 527
Share Repurchases as Dividend
Decisions 528
Summary 531
Questions and Topics for Discussion 532
Self-Test Problems 533
Problems 534
Part 5: Working Capital Management
16 Working Capital Policy and Short-Term
Financing 540
Key Chapter Concepts 540
Financial Challenge: Working Capital Efficiency and
Corporate Cash Balances 541
Introduction 541
Working Capital Policy 542
Levels of Working Capital Investment 545
Proportions of Short-Term and
Long-Term Financing 547
Overall Working Capital Policy 552
Short-Term Credit 554
Cost of Short-Term Funds 555
Trade Credit 556
Accrued Expenses and Deferred Income 559
Short-Term Bank Credit 559
Ethical Issues: Tying Bank Loans to
Other Services 563
Commercial Paper 564
Accounts Receivable Loans 566
Inventory Loans 569
International Issues: Foreign Receivables
Financing 571
Summary 572
Questions and Topics for Discussion 573
Self-Test Problems 576
Problems 577
Integrative Case Problem: Working Capital
Management 589
17 The Management of Cash and Marketable
Securities 592
Key Chapter Concepts 592
Financial Challenge: Growing Cash Balances at Microsoft,
ExxonMobil, and Berkshire Hathaway 593
Introduction 594
Liquid Asset Balance 595
Controlling the Collection and
Disbursement of Cash 600
Ethical Issues: Cash Management 606
Electronic Funds Transfer 607
Investing in Marketable Securities 608
Entrepreneurial Issues: Cash Management 609
International Issues: Cash Management 613
Summary 614
Questions and Topics for Discussion 615
Self-Test Problems 616
Problems 616
18 The Management of Accounts Receivable
and Inventories 622
Key Chapter Concepts 622
Financial Challenge: Trade Credit in the
Telecom Industry: Cisco Systems 623
Introduction 623
Accounts Receivable Management 624
Evaluating Individual Credit
Applicants 632
Inventory Management 634
Inventory Control Models 637
Summary 643
Questions and Topics for Discussion 644
Self-Test Problems 646
Problems 647
Part 6: Additional Topics in
Contemporary Corporate Finance_____
19 Lease and Intermediate-Term
Financing 656
Key Chapter Concepts 656
Financial Challenge: Risks in Leasing Commercial
Aircraft: International Lease Finance Corporation 657
Introduction 658
Leasing 658
Types of Leases 658
Advantages and Disadvantages of Leasing 662
Entrepreneurial Issues: Leasing by Small Businesses 663
Tax and Accounting Aspects of Leases 664
Determining Lease Payments: The Lessor s
Perspective 666
Ethical Issues: Continental Airlines Leases in
Bankruptcy 668
Lease-Buy Analysis: The Lessees Perspective 668
Term Loans 671
Security Provisions and Protective
Covenants 674
Suppliers of Term Loans 676
Equipment Loans 677
Summary 678
Questions and Topics for Discussion 679
Self-Test Problems 680
Problems 681
Integrative Case Problem: Lease and
Term Loan Analysis 685
20 Financing with Derivatives 686
Key Chapter Concepts 686
Financial Challenge: General Motors
Costly Put Option 687
Introduction 688
Options 688
Convertible Securities 692
Warrants 696
Analysis of Rights Offerings 699
Interest Rate Swaps 701
Summary 702
Questions and Topics for Discussion 703
Self-Test Problems 704
Problems 704
Appendix 20A: The Black-Scholes
Option Pricing Model 709
The Foundations of Option Valuation 709
The Black-Scholes Option Pricing Model 710
Applying the Black-Scholes Model 710
Problems 711
Appendix 20B: Bond Refunding Analysis 712
The Bond Refunding Process 712
Problems 714
21 Risk Management 716
Key Chapter Concepts 716
Financial Challenge: Hedging as a Tool to Manage
Risk in the Airline Industry 717
Introduction 718
Why Manage Risk? 718
Ethical Issues: Barings Bank PLC and
NickLeeson 719
Nonhedging Risk Management Strategies 720
Hedging Strategies for Risk
Management 722
Hedging Price Risk with Options 727
Summary 729
Questions and Topics for Discussion 729
Self-Test Problems 730
Problems 730
22 International Financial Management 732
Key Chapter Concepts 732
Financial Challenge: Argentina Takes a
Financial Dive 733
Introduction 734
Factors That Affect Exchange Rates 734
Forecasting Future Exchange Rates 740
Foreign Exchange Risk 742
Ethical Issues: Payment of Bribes Abroad 746
Summary 747
Questions and Topics for Discussion 748
Self-Test Problems 748
Problems 749
23 Corporate Restructuring 752
Key Chapter Concepts 752
Financial Challenge: The Swift Collapse of Enron 753
Introduction 754
Mergers 754
Valuation of Merger Candidates 763
Analysis of a Leveraged Buyout 768
Business Failure 769
Alternatives for Failing Businesses 771
Summary 778
Questions and Topics for Discussion 779
Self-Test Problem 781
Problems 781
Integrative Case Problem: Mergers and
Acquisitions 785
Reference Materials
Tables T-l
Glossary G-l
Solutions to Self-Test Problems S-l
Check Answers to Selected Problems C-1
Index 1-1
XII
|
| adam_txt |
Brief Contents
Preface xiii
Part 1: Introduction
Chapter 1: The Role and Objective of Financial Management 2
Chapter 2: The Domestic and International Financial Marketplace 24
Appendix 2A: Taxes 51
Chapter 3: Evaluation of Financial Performance 56
Chapter 4: Financial Planning and Forecasting 100
Part 2: Determinants of Valuation_
Chapter 5: The Time Value of Money 130
Appendix 5A: Continuous Compounding and Discounting 173
Chapter 6: Analysis of Risk and Return 176
Chapter 7: Fixed-Income Securities: Characteristics and Valuation 222
Chapter 8: Common Stock: Characteristics, Valuation, and Issuance 256
Part 3: The Capital Investment Decision_
Chapter 9: Capital Budgeting and Cash Flow Analysis 290
Appendix 9A: Depreciation 319
Chapter 10: Capital Budgeting: Decision Criteria and Real Option Considerations 324
Appendix 10A: Mutually Exclusive Investments Having Unequal Lives 361
Chapter 11: Capital Budgeting and Risk 366
Part 4: The Cost of Capital. Capital Structure, and Dividend Policy
Chapter 12: The Cost of Capital 396
Chapter 13: Capital Structure Concepts 432
Chapter 14: Capital Structure Management in Practice 462
Appendix 14A: Breakeven Analysis 497
Chapter 15: Dividend Policy 508
Part 5: Working Capital Management_
Chapter 16: Working Capital Policy and Short-Term Financing 540
Chapter 17: The Management of Cash and Marketable Securities 592
Chapter 18: The Management of Accounts Receivable and Inventories 622
Part 6: Additional Topics in Contemporary Corporate Finance_
Chapter 19: Lease and Intermediate-Term Financing 656
Chapter 20: Financing with Derivatives 686
Appendix 20A: The Black-Scholes Option Pricing Model 709
Appendix 20B: Bond Refunding Analysis 712
Chapter 21: Risk Management 716
Chapter 22: International Financial Management 732
Chapter 23: Corporate Restructuring 752
Reference Materials
Tables T-l
Glossary G-l
Solutions to Self-Test Problems S-l
Check Answers to Selected Problems C-l
Index 1-1
Contents
Preface xiii
Parti: Introduction
1 The Role and Objective of Financial
Management 2
Key Chapter Concepts 2
financial Challenge: Issues Confronting Financial
Managers 3
Introduction 4
Foundation Concept: Maximizing Shareholder
Wealth as the Primary Goal 5
Maximization of Shareholder Wealth: Managerial
Strategies 9
Forms of Business Organization 13
Ethical Issues: The Practice of Financial Management 14
Organization of the Financial Management
Function 17
Financial Management and Other Disciplines 19
Entrepreneurial Issues: Shareholder Wealth
Maximization 20
Career Opportunities in Finance 21
Professional Finance Affiliations and
Certifications 21
Summary 22
Questions and Topics for Discussion 23
2 The Domestic and International Financial
Marketplace 24
Key Chapter Concepts 24
Financial Challenge: Long- Term Capital
Management, L.P. 25
Introduction 26
Income Taxes and Financial Management 26
An Overview of the U.S. Financial System 27
The Structure and Operation of U.S. Security
Markets 32
The Global Economy and Multinational
Enterprises 34
Foreign Currency Markets and Exchange
Rates 35
Foundation Concept: Market Efficiency 40
Ethical Issues: Insider Trading 45
International Issues: Market Efficiency Outside
the United States 46
Foundation Concept: Holding
Period Returns 46
Summary 47
Questions and Topics for Discussion 48
Self-Test Problems 48
Problems 49
Appendix 2A: Taxes 51
Corporate Income Taxes 51
Entrepreneurial Issues: S Corporations 52
Questions and Topics for Discussion 53
Self-Test Problems 54
Problems 54
3 Evaluation of Financial Performance 56
Key Chapter Concepts 56
Financial Challenge: The Glitter at Tiffany's 57
Introduction 57
Use of Financial Analysis 58
Interpreting Financial Ratios 58
Basic Classifications of Financial Ratios 59
Summary of Financial Ratio Analysis 72
Trend Analysis 73
Analysis of Profitability: Return on Investment 73
Foundation Concept: Analyzing Profitability
Through Return on Stockholders' Equity 78
Sources of Comparative Financial Data 78
A Word of Caution About Financial
Ratio Analysis 79
Earnings and Balance Sheet Quality and
Financial Analysis 80
Ethical Issues: The Sarbanes-Oxley Act and the Financial
Reporting Process 83
Market Value Added: An Alternative Measure of
Performance 83
International Issues: Financial Analysis of Multinational
Corporations 86
Inflation and Financial Statement Analysis 86
Summary 87
Questions and Topics for Discussion 89
Self-Test Problems 89
Problems 91
VI
4 Financial Planning and
Forecasting 100
Key Chapter Concepts 100
Financial Challenge: Financial Forecasting in
the Telecom Industry: What Went Wrong? 101
Introduction 102
Financial Planning 102
Foundation Concept: Cash Flow Analysis 103
Financial Forecasting 111
Summary 121
Questions and Topics for Discussion 122
Self-Test Problems 123
Problems 124
Part 2: Determinants of Valuation
5 The Time Value of Money 130
Key Chapter Concepts 130
Financial Challenge: The Powerball Winner's
"Dilemma" 131
Introduction 131
The Use of Financial Calculators and
Spreadsheets 132
Interest 134
Simple Interest 134
Compound Interest and Future
Value 136
Present Value 140
Annuities 143
Present Value: Some Additional Cash Flow
Patterns 153
Compounding Periods and Effective
Interest Rates 157
Solving the Financial Challenge 160
Foundation Concept: Net Present
Value Rule 160
Summary 161
Questions and Topics for Discussion 162
Self-Test Problems 164
Problems 164
Integrative Case Problem: Time Value of
Money 171
Appendix 5A: Continuous Compounding
and Discounting 173
Continuous Compounding 173
Continuous Discounting 173
Effective Rate Calculations 174
Self-Test Problems 174
Problems 174
6 Analysis of Risk and Return 176
Key Chapter Concepts 176
Financial Challenge: Risk and Return on Ford and
General Motors Common Stock 177
Introduction 178
Meaning and Measurement of Risk 178
Foundation Concept: Relationship Between Risk
and Return 185
Investment Diversification and Portfolio Risk
Analysis 192
Portfolio Risk and the Capital Asset
Pricing Model 200
International Issues: Diversification and Multinational
Corporations 209
Ethical Issues: High-Risk Securities 210
Other Dimensions of Risk 211
Summary 212
Questions and Topics for Discussion 213
Self-Test Problems 215
Problems 216
7 Fixed-Income Securities: Characteristics
and Valuation 222
Key Chapter Concepts 222
Financial Challenge: General Motors (GM)
Debt Falls Deeper into "Junk" Territory 223
Introduction 224
Characteristics of Long-Term Debt 224
International Issues: The International Bond Market 236
Bond Valuation 239
Ethical Issues: Leveraged Buyouts and Bond Values 244
Characteristics of Preferred Stock 245
Summary 249
Questions and Topics for Discussion 250
Self-Test Problems 251
Problems 252
vii
8 Common Stock: Characteristics, Valuation,
and Issuance 256
Key Chapter Concepts 256
Financial Challenge: Google Goes Public 257
Introduction 258
Characteristics of Common Stock 258
Ethical Issues: Unequal Voting Rights 263
The Security Offering Process: Role of the
Investment Banker 265
Foundation Concept: Valuation of Common
Stock 271
International Issues: Global Equity Markets 273
Applications of the General Dividend
Valuation Model 275
Entrepreneurial Issues: Valuation of Closely Held Firms 278
Summary 280
Questions and Topics for Discussion 281
Self-Test Problems 282
Problems 283
Part 3: The Capital Investment Decision
9 Capital Budgeting and Cash Flow
Analysis 290
Key Chapter Concepts 290
Financial Challenge: Chrysler's Bet on Flexibility 291
Introduction 292
Key Terms and Concepts in Capital
Budgeting 293
Basic Framework for Capital Budgeting 294
Generating Capital Investment Project
Proposals 295
Foundation Concept: Principles of Estimating
Cash Flows 297
Net Investment (NINV) 299
Net (Operating) Cash Flows 300
Asset Expansion Projects 304
Asset Replacement Projects 306
Problems in Cash Flow Estimation 308
The Practice of Cash Flow Estimation for
Capital Budgeting 310
Ethical Issues: Cash Flow Estimation Biases 311
Summary 312
Questions and Topics for Discussion 312
Self-Test Problems 313
Problems 314
Appendix 9A: Depreciation 319
Introduction to Depreciation 319
Straight-Line Depreciation 319
Modified Accelerated Cost Recovery
System (MACRS) 320
Real Property 322
Questions and Topics for Discussion 322
Problems 323
10 Capital Budgeting: Decision Criteria and
Real Option Considerations 324
Key Chapter Concepts 324
Financial Challenge: Airbus Challenges the
Boeing 787 Dreamliner 325
Introduction 325
Foundation Concept: Decision Models for
Evaluating Alternatives 326
Capital Rationing and the Capital Budgeting
Decision 338
Reviewing and Post-Auditing an Accepted
Project 341
A Comprehensive Example of Capital Budgeting:
Opening a New Bank Branch 342
International Issues: A Framework for International Capital
Expenditure Decisions 344
Entrepreneurial Issues: Capital Budgeting 346
Inflation and Capital Expenditures 346
Real Options in Capital Budgeting 347
Ethical Issues: The Use of Shareholder Resources 348
Summary 351
Questions and Topics for Discussion 351
Self-Test Problems 352
Problems 353
Integrative Case Problem: Capital Budgeting 360
Appendix 10A: Mutually Exclusive Investments
Having Unequal Lives 361
Replacement Chains 361
Equivalent Annual Annuities 363
Problems 364
viii
11 Capital Budgeting and Risk 366
Key Chapter Concepts 366
Financial Challenge: Boeing Makes a Gutsy Decision 367
Introduction 368
Total Project Risk Versus Portfolio Risk 368
Adjusting for Total Project Risk 369
Adjusting for Beta Risk in Capital Budgeting 378
International Issues: Special Elements of Capital
Budgeting Risk 380
Ethical Issues: Johnson Johnson and Proprietary
Competitive Information 381
Summary 384
Questions and Topics for Discussion 384
Self-Test Problems 385
Problems 386
Integrative Case Problem: Capital Budgeting and
Risk Analysis 393
Part 4: The Cost of Capital, Capital
Structure, and Dividend Policy
12 The Cost of Capital 396
Key Chapter Concepts 396
Financial Challenge: Cost of Equity Capital for
Mountain Fuel Supply Company 397
Introduction 398
Summary of Notation 399
Foundation Concept: Weighted Cost of Capital 399
Relative Costs of Capital 402
Computing the Component Costs of Capital 403
Divisional Costs of Capital 412
Determining the Weighted (Marginal) Cost of
Capital Schedule 414
International Issues: The Cost of Capital for
Multinational Companies 416
Determining the Optimal Capital Budget 417
Entrepreneurial Issues: The Cost of Capital 418
Cost of Depreciation-Generated Funds 419
Summary 420
Questions and Topics for Discussion 421
Self-Test Problems 421
Problems 422
Integrative Case Problem: Cost of Capital 430
13 Capital Structure Concepts 432
Key Chapter Concepts 432
Financial Challenge: Optimal Capital Structure in the
Airline Industry: American Airlines Versus Soutliwest
Airlines 433
Introduction 434
Capital Structure Decisions and Maximization of
Shareholder Wealth 435
Foundation Concept: Business Risk 435
Foundation Concept: Financial Risk and Financial
Leverage 437
Capital Structure Theory 440
Ethical Issues: LBO Stakeholder Impacts 453
International Issues: Capital Structure 454
Summary 455
Questions and Topics Jor Discussion 456
Self Test Problem 456
Problems 457
14 Capital Structure Management in
Practice 462
Key Chapter Concepts 462
Financial Challenge: A Significant Deleveraging of
AT T's Balance Sheet 463
Introduction 464
Operating and Financial Leverage 464
Other Financial Risk Measures 473
EBIT-EPS Analysis 474
Cash Insolvency Analysis 480
Other Factors to Consider in Making Capital
Structure Decisions 483
International Issues: Balancing Operating and
Financial Risks at Nestle 484
Summary 485
Questions and Topics for Discussion 486
Self-Test Problems 487
Problems 488
Appendix 14A: Breakeven Analysis 497
Introduction 497
Graphic Breakeven Analysis 497
Algebraic Breakeven Analysis 498
Breakeven Analysis and Risk Assessment 502
Some Limitations of Breakeven Analysis 502
IX
Cash Breakeven Point 504
Questions and Topics for Discussion 505
Self-Test Problems 505
Problems 506
15 Dividend Policy 508
Key Chapter Concepts 508
Financial Challenge: Cisco Systems Shareholders
Reject a Dividend Payout Proposal 509
Introduction 509
Determinants of Dividend Policy 511
Dividend Policy and Firm Value 517
Dividend Policies 520
Entrepreneurial Issues: Dividend Policy 523
How Dividends Are Paid 524
International Issues: Dividend Policies for
Multinational Firms 526
Stock Dividends and Stock Splits 527
Share Repurchases as Dividend
Decisions 528
Summary 531
Questions and Topics for Discussion 532
Self-Test Problems 533
Problems 534
Part 5: Working Capital Management
16 Working Capital Policy and Short-Term
Financing 540
Key Chapter Concepts 540
Financial Challenge: Working Capital Efficiency and
Corporate Cash Balances 541
Introduction 541
Working Capital Policy 542
Levels of Working Capital Investment 545
Proportions of Short-Term and
Long-Term Financing 547
Overall Working Capital Policy 552
Short-Term Credit 554
Cost of Short-Term Funds 555
Trade Credit 556
Accrued Expenses and Deferred Income 559
Short-Term Bank Credit 559
Ethical Issues: Tying Bank Loans to
Other Services 563
Commercial Paper 564
Accounts Receivable Loans 566
Inventory Loans 569
International Issues: Foreign Receivables
Financing 571
Summary 572
Questions and Topics for Discussion 573
Self-Test Problems 576
Problems 577
Integrative Case Problem: Working Capital
Management 589
17 The Management of Cash and Marketable
Securities 592
Key Chapter Concepts 592
Financial Challenge: Growing Cash Balances at Microsoft,
ExxonMobil, and Berkshire Hathaway 593
Introduction 594
Liquid Asset Balance 595
Controlling the Collection and
Disbursement of Cash 600
Ethical Issues: Cash Management 606
Electronic Funds Transfer 607
Investing in Marketable Securities 608
Entrepreneurial Issues: Cash Management 609
International Issues: Cash Management 613
Summary 614
Questions and Topics for Discussion 615
Self-Test Problems 616
Problems 616
18 The Management of Accounts Receivable
and Inventories 622
Key Chapter Concepts 622
Financial Challenge: Trade Credit in the
Telecom Industry: Cisco Systems 623
Introduction 623
Accounts Receivable Management 624
Evaluating Individual Credit
Applicants 632
Inventory Management 634
Inventory Control Models 637
Summary 643
Questions and Topics for Discussion 644
Self-Test Problems 646
Problems 647
Part 6: Additional Topics in
Contemporary Corporate Finance_
19 Lease and Intermediate-Term
Financing 656
Key Chapter Concepts 656
Financial Challenge: Risks in Leasing Commercial
Aircraft: International Lease Finance Corporation 657
Introduction 658
Leasing 658
Types of Leases 658
Advantages and Disadvantages of Leasing 662
Entrepreneurial Issues: Leasing by Small Businesses 663
Tax and Accounting Aspects of Leases 664
Determining Lease Payments: The Lessor's
Perspective 666
Ethical Issues: Continental Airlines' Leases in
Bankruptcy 668
Lease-Buy Analysis: The Lessees Perspective 668
Term Loans 671
Security Provisions and Protective
Covenants 674
Suppliers of Term Loans 676
Equipment Loans 677
Summary 678
Questions and Topics for Discussion 679
Self-Test Problems 680
Problems 681
Integrative Case Problem: Lease and
Term Loan Analysis 685
20 Financing with Derivatives 686
Key Chapter Concepts 686
Financial Challenge: General Motors'
Costly Put Option 687
Introduction 688
Options 688
Convertible Securities 692
Warrants 696
Analysis of Rights Offerings 699
Interest Rate Swaps 701
Summary 702
Questions and Topics for Discussion 703
Self-Test Problems 704
Problems 704
Appendix 20A: The Black-Scholes
Option Pricing Model 709
The Foundations of Option Valuation 709
The Black-Scholes Option Pricing Model 710
Applying the Black-Scholes Model 710
Problems 711
Appendix 20B: Bond Refunding Analysis 712
The Bond Refunding Process 712
Problems 714
21 Risk Management 716
Key Chapter Concepts 716
Financial Challenge: Hedging as a Tool to Manage
Risk in the Airline Industry 717
Introduction 718
Why Manage Risk? 718
Ethical Issues: Barings Bank PLC and
NickLeeson 719
Nonhedging Risk Management Strategies 720
Hedging Strategies for Risk
Management 722
Hedging Price Risk with Options 727
Summary 729
Questions and Topics for Discussion 729
Self-Test Problems 730
Problems 730
22 International Financial Management 732
Key Chapter Concepts 732
Financial Challenge: Argentina Takes a
Financial Dive 733
Introduction 734
Factors That Affect Exchange Rates 734
Forecasting Future Exchange Rates 740
Foreign Exchange Risk 742
Ethical Issues: Payment of Bribes Abroad 746
Summary 747
Questions and Topics for Discussion 748
Self-Test Problems 748
Problems 749
23 Corporate Restructuring 752
Key Chapter Concepts 752
Financial Challenge: The Swift Collapse of Enron 753
Introduction 754
Mergers 754
Valuation of Merger Candidates 763
Analysis of a Leveraged Buyout 768
Business Failure 769
Alternatives for Failing Businesses 771
Summary 778
Questions and Topics for Discussion 779
Self-Test Problem 781
Problems 781
Integrative Case Problem: Mergers and
Acquisitions 785
Reference Materials
Tables T-l
Glossary G-l
Solutions to Self-Test Problems S-l
Check Answers to Selected Problems C-1
Index 1-1
XII |
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| index_date | 2024-07-02T21:22:13Z |
| indexdate | 2024-07-09T21:17:41Z |
| institution | BVB |
| isbn | 9780324657906 0324657900 |
| language | English |
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| spelling | MacGuigan, James R. Verfasser aut Contemporary corporate finance James R. McGuigan ; William J. Kretlow ; R. Charles Moyer 11. ed., internat. student ed. [S.l.] South-Western Cengage Learning 2009 getr. Zählung Ill., graph. Darst. txt rdacontent n rdamedia nc rdacarrier Unternehmen Business enterprises Finance Corporations Finance Finanzierung (DE-588)4017182-6 gnd rswk-swf Finanzierung (DE-588)4017182-6 s DE-604 Kretlow, William J. Verfasser aut Moyer, R. Charles Verfasser aut HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016579805&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | MacGuigan, James R. Kretlow, William J. Moyer, R. Charles Contemporary corporate finance Unternehmen Business enterprises Finance Corporations Finance Finanzierung (DE-588)4017182-6 gnd |
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| title | Contemporary corporate finance |
| title_auth | Contemporary corporate finance |
| title_exact_search | Contemporary corporate finance |
| title_exact_search_txtP | Contemporary corporate finance |
| title_full | Contemporary corporate finance James R. McGuigan ; William J. Kretlow ; R. Charles Moyer |
| title_fullStr | Contemporary corporate finance James R. McGuigan ; William J. Kretlow ; R. Charles Moyer |
| title_full_unstemmed | Contemporary corporate finance James R. McGuigan ; William J. Kretlow ; R. Charles Moyer |
| title_short | Contemporary corporate finance |
| title_sort | contemporary corporate finance |
| topic | Unternehmen Business enterprises Finance Corporations Finance Finanzierung (DE-588)4017182-6 gnd |
| topic_facet | Unternehmen Business enterprises Finance Corporations Finance Finanzierung |
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