Let me begin this preface with a confession of a few of my own biases. First, I believe that theory, and the models that flow from it, should provide us with the tools to understand, analyze and solve problems. The test of a model or theory then should not be based upon its elegance but upon its usefulness in problem solving. Second, there is little in corporate financial theory, in my view, that is new and revolutionary. The core principles of corporate finance are common sense ones, and have changed little over time....
Chapter 2 - Investing and financing decisions and the balance sheet. After studying this chapter, you should be able to: Define the objective of financial reporting, the elements of the balance sheet, and the related key accounting assumptions and principles; identify what constitutes a business transaction and recognize common balance sheet account titles used in business; Apply transaction analysis to simple business transactions in terms of the accounting model;...
Chapter 2, investing and financing decisions and the accounting system. After studying this chapter, you should be able to: Define the objective of financial reporting, the elements of the balance sheet, and the related key accounting assumptions and principles; identify what constitutes a business transaction and recognize common balance sheet account titles used in business.
The purpose of this book is to provide an introduction to financial decisionmaking,
and the framework in which these decisions are made. The Basics
of Finance is an accessible book for those who want to gain a better understanding
of this field, but lack a strong business background. In this book,
we cover the essential concepts, tools, methods, and strategies in finance
without delving too far into theory.
This book introduces corporate financial management, based on the basic capital budgeting framework and the time value of money. It focuses on theoretical formulations and correct application of financial techniques that will help improve managerial and financial decisions. Based on fundamental principles of accounting and finance like time value of money and after-tax cash flows, it introduces readers to real-world constraints and complexities in the two fields.
A practical guide for making sense of chaos theory and applying it to today's financial markets. Enables traders and analysts to uncover hidden determinism in seemingly random market events and make accurate investment decisions with high probabilities for profit.
AN OVERVIEW OF CORPORATE FINANCING
We now begin our analysis of long-term financing decisions—an undertaking we will not complete until Chapter 26. This chapter provides an introduction to corporate financing.
CONTROL , GOVERNANCE, AND FINANCIAL ARCHITECTURE
Corporate control means the power to make investment and financing decisions. A hostile takeover bid is an attempt to force a change in corporate control. In popular usage, corporate governance refers to the role of the board
This book is directed toward the businessperson who must have financial and
accounting knowledge but has not had formal training in finance or accounting —
perhaps a newly promoted middle manager or a marketing manager of a small
company who must know some basic finance concepts. The entrepreneur or sole
proprietor also needs this knowledge; he or she may have brilliant product ideas,
but not the slightest idea about financing.
Some 20 years ago, after years of teaching corporate finance and writing
related textbooks and casebooks, I began teaching healthcare financial
management in the University of Florida’s joint MBA/MHA program.
The move prompted me to write my first healthcare finance textbook, Understanding
Health Care Financial Management. The book was designed for
use in health services administration financial management courses in which
students had prerequisite courses in both accounting and corporate finance.
Business financial decisions are not made in a vacuum. An ‘obvious’ decision may often have to be
tempered by an appreciation of the restrictions imposed by the prevailing environment. Although it
is beyond our scope to consider the full social, political and economic complexity of the financial
decision-making context, we provide an overview of the key features of the UK financial and
economic system. A sound grasp of the framework for financial decisions is essential if the reader is
to appreciate fully the issues discussed in subsequent chapters of this book....
FINANCING AND VALUATION
At that point we said hardly a word about financing decisions; we proceeded under the simplest possible assumption about financing, namely, all-equity financing. We were really assuming an idealized Modigliani–Miller (MM) world in which all financing decisions are irrelevant.
Whether you are a specialist or financial generalist, the Handbook of Modern Finance can help you do your job more confidently. From financial theory to day-to-day practical applications, the Handbook answers basic and complex questions in plain, understandable terms.
This book shows how the principles of finance can be used by executives
to enhance the value of their companies. Dr. Weaver had been a
senior executive in finance at Hershey Foods for twenty years through
1998, when he joined the Finance Department at Lehigh University. For
the past ten years as a director of the Financial Management Association,
he has organized and directed a program linking financial principles
to financial practices. These full-day sessions focused on the
interaction between financial theories and real world practices.
In a world of geo-political, social and economic uncertainty, strategic financial management is in a process of change, which requires a reassessment of the fundamental assumptions that cut across the traditional boundaries of the subject. Read on and you will not only appreciate the major components of contemporary finance but also find the subject much more accessible for future reference.
It is a basic assumption of finance theory, taught as fact in Business Schools and advocated at the highest level by vested interests, world-wide (governments, financial institutions, corporate spin doctors, the press, media and financial web-sites) that stock markets represent a profitable long-term investment. Throughout the twentieth century, historical evidence also reveals that over any five to seven year period security prices invariably rose.
The content of this book has become ever more relevant after the recent 2007–2009 and 2011 financial
crises, one consequence of which was greatly increased scepticism among investment professionals about
the received wisdom drawn from standard finance, modern portfolio theory and its later developments.
Chapter 17 cover a variety of topics related to dividends and corporate payout policies. After studying this chapter, you should understand: Dividend types and how dividends are paid, the issues surrounding dividend policy decisions, the difference between cash and stock dividends, why share repurchases are an alternative to dividends.
This chapter introduces the basic elements of short-term financial decisions. First, we discuss the short-term operating activities of the firm. We then identify some alternative short-term financial policies. Finally, we outline the basic elements in a short-term fi nancial plan and describe short-term financing instruments.
After studying this chapter, you should understand: How firms manage their receivables and the basic components of a firm’s credit policies, how to analyze the decision by a firm to grant credit, the types of inventory and inventory management systems used by firms, how to determine the costs of carrying inventory and the optimal inventory level.