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Front Matter 1 Preface 1 Cross Reference System 6 Some Useful Facts and Formulas 7 I. Introduction 10 1. The Firm and the Financial Manager 10 2. Accounting and Finance 39 II. Value 61 3. The Time Value of Money 61 4. Valuing Bonds 108 6. Net Present Value and Other Investment Criteria 132 5. Valuing Stocks 167 7. Using Discounted Cash−Flow Analysis to Make Investment Decisions 198 8. Project Analysis 227 III. Risk 254 9. Introduction to Risk, Return, and the Opportunity Cost of Capital 254 10. Risk, Return, and Capital Budgeting 282 11. The Cost of Capital 309 IV. Financing 336 12. Corporate Financing and the Lessons of Market Efficiency 336 13. An Overview of Corporate Financing 357 14. How Corporations Issue Securities 380 V. Capital Structure and Dividend Policy 407 15. The Capital Structure Decision 407 16. Dividend Policy 441 VI. Financial Planning 465 17. Financial Statement Analysis 465 18. Financial Planning 496 19. Working Capital Management and Short−Term Planning 523 iiiVII. Short−Term Financial Decisions 557 20. Cash and Inventory Management 557 21. Credit Management and Collection 582 VIII. Special Topics 607 22. Mergers, Acquisitions, and Corporate Control 607 23. International Financial Management 637 24. Options 664 25. Risk Management 689 IX. Conclusion 711 26. What We Do and Do Not Know About Finance 711 Back Matter 725 Appendix A: Present Value Tables 725 Appendix B: Solutions to Selected End−of−Chapter Problems 734 Glossary 748 Index 753 iv
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