• With its straightforward course management, assessment, and analytics for instructors, CFIN6 integrates seamlessly into your course and sets the stage for students to think critically about Corporate Finance.
• More user -friendly than ever, instructor prep cards and student review cards have been thoroughly reworked and updated by the authors.

Part 1 Introduction to Managerial Finance

Chapter 1 An Overview of Managerial Finance

1-1 What Is Finance?

1-2 Alternative Forms of Business Organization

1-3 What Goal(s) Should Businesses Pursue?

1-4 What Roles Do Ethics and Governance Play in Business Success?

1-5 Forms of Businesses in Other Countries

Key Managerial Finance Concepts

Part 2 Essential Concepts in Managerial Finance

Chapter 2 Analysis of Financial Statements

2-1 Financial Reports 21

2-2 Financial Statements 21

2-3 Financial Statement (Ratio) Analysis 30

2-4 Uses and Limitations of Ratio Analysis

Key Financial Statement Analysis Concepts

Chapter 3 The Financial Environment: Markets, Institutions, and Investment Banking

3-1 What Are Financial Markets?

3-2 Types of Financial Markets

3-3 The Investment Banking Process

3-4 Financial Intermediaries and Their Roles in Financial Markets

3-5 International Financial Markets

Key Financial Environment Concepts

Chapter 4 Time Value of Money

4-1 Cash Flow Patterns

4-2 Future Value (FV)

4-3 Present Value (PV)

4-4 Solving for Interest Rates (r) or Time (n)

4-5 Annual Percentage Rate (APR) and Effective Annual Rate (EAR)

4-6 Amortized Loans

Key Time Value of Money Concepts

Part 3 Valuation—Financial Assets

Chapter 5 The Cost of Money (Interest Rates)

5-1 The Cost of Money

5-2 Determinants of Market Interest Rates

5-3 The Term Structure of Interest Rates

5-4 Other Factors That Influence Interest Rate Levels

5-5 Interest Rate Levels and Stock Prices

Key Cost of Money (Interest Rate) Concepts

Chapter 6 Bonds (Debt)—Characteristics and Valuation

6-1 Characteristics and Types of Debt

6-2 Bond Ratings

6-3 Valuation of Bonds

6-4 Finding Bond Yields (Market Rates): Yield to Maturity and Yield to Call

6-5 Interest Rates and Bond Values

Key Bond Valuation and Characteristics Concepts

Chapter 7 Stocks (Equity)—Characteristics and Valuation

7-1 Types of Equity

7-2a Expected Dividends as the Basis for Stock Values

7-3 Other Stock Valuation Methods

7-4 Changes in Stock Prices

Key Stock Valuation Concepts

Chapter 8 Risk and Rates of Return

8-1 Defining and Measuring Risk

8-2 Expected Rate of Return

8-3 Portfolio Risk—Holding Combinations of Investments

8-4 The Relationship between Risk and Rates of Return: The CAPM

8-5 Stock Market Equilibrium

8-6 Different Types of Risk

Key Risk and Return Concepts

Part 4 Valuation—Real Assets (Capital Budgeting)

Chapter 9 Capital Budgeting Techniques

9-1 Importance of Capital Budgeting

9-2 Evaluating Capital Budgeting Projects

9-3 Comparison of the NPV and IRR Methods

9-4 Modified Internal Rate of Return

9-5 Use of Capital Budgeting Techniques in Practice

Key Capital Budgeting Concepts

Chapter 10 Project Cash Flows and Risk

10-1 Cash Flow Estimation

10-2 Capital Budgeting Project Evaluation

10-3 Incorporating Risk in Capital Budgeting Analysis

10-4 Multinational Capital Budgeting

Key Concepts about Project Cash Flows and Risk

Part 5 Cost of Capital and Capital Structure Concepts

Chapter 11 The Cost of Capital

11-1 Component Costs of Capital

11-3 Combining the MCC and Investment Opportunity Schedules (IOS)

11-4 WACC versus Required Rate of Return of Investors

Key Cost of Capital Concepts

Chapter 12 Capital Structure

12-1 The Target Capital Structure

12-2 Determining the Optimal Capital Structure

12-3 Degree of Leverage

12-4 Liquidity and Capital Structure

12-5 Capital Structure Theory

12-6 Variations in Capital Structures among Firms

Key Capital Structure Concepts

Chapter 13 Distribution of Retained Earnings: Dividends and Stock Repurchases

13-1 Dividend Policy and Stock Value

13-2 Dividend Payments in Practice

13-3 Factors Influencing Dividend Policy

13-4 Stock Dividends and Stock Splits

13-5 Stock Repurchases

13-6 Dividend Policies Around the World

Key Distribution of Retained Earnings Concepts

Part 6 Working Capital Management

Chapter 14 Managing Short-Term Financing (Liabilities)

14-1 Working Capital

14-2 The Cash Conversion Cycle

14-3 Current Asset (Working Capital) Financing Policies

14-4 Sources of Short-Term Financing

14-5 Computing the Cost of Short-Term Credit

14-6 Multinational Working Capital Management

Key Concepts for Managing Short-Term Financing

Chapter 15 Managing Short-Term Assets

15-1 Alternative Current Asset Investment Policies

15-2 Cash Management

15-3 Marketable Securities

15-4 Credit Management

15-5 Inventory Management

15-6 Multinational Working Capital Management

Key Concepts for Managing Short-term Assets

Part 7 Strategic Planning and Financing Decisions

Chapter 16 Financial Planning and Control

16-1 Projected (Pro Forma) Financial Statements

16-2 Other Considerations in Forecasting

16-3 Financial Control—Budgeting and Leverage

16-4 Using Leverage and Forecasting for Control

Key Financial Planning and Control Concepts

Appendix A

Using Spreadsheets to Solve Financial Problems

A-1 Setting up Mathematical Relationships

A-2 Solving Time Value of Money (TVM) Problems Using Preprogrammed Spreadsheet Functions

Index

Scott Besley, University of South Florida

Dr. Scott Besley is Associate Professor and Chair of the Department of Finance at the University of South Florida. He earned his DBA and MBA degrees from Florida State University. A well-respected author and instructor, Dr. Besley has published numerous research articles in various academic journals and has co-authored two of the leading textbooks in corporate finance that are used at universities around the world. His research interests include areas of corporate finance, working capital management, governance, and investment anomalies. A frequently requested presenter at professional conferences, Dr. Besley is actively involved in numerous finance and professional organizations. When he is not teaching or pursuing research interests, he is heavily involved in his local community.

Eugene Brigham, University of Florida

Dr. Eugene F. Brigham is Graduate Research Professor Emeritus at the University of Florida, where he has taught since 1971. He earned his MBA and Ph.D. from the University of California–Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin, and the University of California–Los Angeles. A former president of the Financial Management Association, he has written more than 40 journal articles on the cost of capital, capital structure, and other aspects of financial management. He authored or co-authored ten textbooks on managerial finance and managerial economics that have also been translated into 11 languages worldwide. In addition, Dr. Brigham has served as a consultant to many corporations and government agencies.