Encyclopedic Dictionary of International Finance and
is written and compiled
for working professionals engaged in the fields of international finance, global trade, foreign
investments, and banking. It may be used for day-to-day practice and for technical research.
is a practical reference of proven techniques, strategies, and
approaches that are successfully used by professionals to diagnose multinational finance and
Most discussions of corporate financing policy focus on long-term
liabilities such as common stock, preferred stock, debentures,
loans, and leases. Yet trade credit—credit extended by a seller
who allows delayed payment for its products—represents a substantial component of both corporate liabilities and assets, especially in the
case of middle-market companies. For the 3,350 non-financial Nasdaq firms
covered by COMPUSTAT, accounts receivable amounted to 19% of corporate
assets, and accounts payable were 26% of corporate liabilities, at the end of 1992.
Many times, the first question career-changers ask is, “Is this new
path right for me?” Our self-assessment quiz, coupled with the career
compasses at the beginning of each chapter, will help you to match your
personal attributes to set you on the right track.
Few services are more important in our country than providing high-quality potable water and
ensuring that wastewater is properly treated and returned to the environment. Most Americans take
for granted the tens of thousands of people who are employed daily in addressing America’s water
and wastewater needs. Utility managers are responsible for making sure that proper water and
wastewater services are provided to residents, businesses, industries, and other customers within a
community. Water and wastewater employees work in utility operations and administrative support
Stochastic Calculus of Variations (or Malliavin Calculus) consists, in brief,
in constructing and exploiting natural differentiable structures on abstract
probability spaces; in other words, Stochastic Calculus of Variations proceeds
from a merging of differential calculus and probability theory.
As optimization under a random environment is at the heart of mathematical
finance, and as differential calculus is of paramount importance for the
search of extrema, it is not surprising that Stochastic Calculus of Variations
appears in mathematical finance.
The use of English language for cross-border communications is important in many
areas of trade ranging from tourism to the trade in financial services. This is in order to build
a stronger regional economy through freely and openly communicating with one another.
However, the increasing involvement in trade, tourism and international relations
among APEC Member countries where English is not spoken as the first language poses
some problems and barriers in achieving aspired regional cooperation.
On this issue the review drew from best practices in the individual
sectors examined. The first issue in O&M arrangements has already
been mentioned: the need for clear ownership of the infrastructure
and accountability for who will operate and maintain the project.
The third issue, which is not always elaborated as much, is the need
for a formal backstopping arrangement if the community is expected
to carry out O&M. A good system is needed to give the community
support when it has problems and when issues arise, for example
the issue of mobilization of recurrent financing....
After studying this chapter in the lecture, you should be able to: Explain what the cost of capital represents and why it is so important, estimate the cost of equity using the dividend growth model approach and the security market line approach, estimate the cost of debt and the cost of preferred stock, understand when it is appropriate and to use the WACC as a measure of the firm's required rate of return,...
The central problem of life-cycle finance is the spreading of the income from
the economically productive part of an individual’s life over that person’s whole life.
As with all financial problems, this task is made difficult by time and uncertainty.
Merely setting aside a portion of one’s income for later use does not mean that it
will be there—in real (inflation-adjusted) terms—when it is needed. No investment
is riskless if the “run” is long enough. In addition, there is the ordinary risk that the
realized return will be lower than the expected return.
This chapter explain why it is important to look to the future when determining a venture’s value, describe how the time pattern of cash flows relates to venture value, understand the need to consider both forecast period and terminal value cash flows when determining a venture’s value, understand the difference between required cash and surplus cash,...
Individuals, like corporations, should focus on cash flow when planning and monitoring finances. You should establish short- and longterm financial goals (destinations) and develop personal financial plans (road maps) that will guide their achievement. Cash flows and financial plans are as important for individuals as for corporations.
Chapter 1 introduction to corporate finance. After studying this chapter in the lecture, you should be able to: Identify the three main areas that concern Corporate Finance, outline the goal of financial management, understand and explain the importance of agency problems, distinguish between money markets and capital markets,...
After studying this chapter, you should understand: How to standardize fi nancial statements for comparison purposes; how to compute and, more importantly, interpret some common ratios; the determinants of a fi rm’s profi tability; some of the problems and pitfalls in fi nancial statement analysis.
The goal in this chapter is to introduce you to bonds. After studying this chapter you will be able to understand: Important bond features and types of bonds, cond values and yields and why they fluctuate, bond ratings and what they mean, the impact of inflation on interest rates, the term structure of interest rates and the determinants of bond yields.
The goal in this chapter is to provide a perspective on capital market history. After studying this chapter, you should understand: How to calculate the return on an investment, the historical returns on various important types of investments, the historical risks on various important types of investments, the implications of market efficiency.
After studying this chapter in the lecture, you should be able to: Explain how financial leverage affects earnings per share (EPS) and return on equity (ROE), compute the degree of financial leverage, define and compute the indifference earnings before interest and taxes (EBIT) and explain its importance in selecting between alternative financing opportunities, define and explain the term homemade leverage, explain why determining the optimal capital structure is important,...
Leasing is an important source of financing for companies of all sizes, and leasing introduces new possibilities for acquiring assets. This chapter considers the circumstances under which leasing makes sense and discusses other important financial management implications of leasing.
Chapter 13 - Working with financial statements. In this chapter, you will know how to standardise financial statements for comparison purposes, know how to compute and interpret important financial ratios, know the determinants of a firm’s profitability and growth, understand the problems and pitfalls in financial statement analysis.
Chapter 6 introduces you to interest rates and bond valuation. In this chapter, you will learn: Know the important bond features and bond types, understand bond values and why they fluctuate, understand bond ratings and what they mean, understand the impact of inflation on interest rates, understand the term structure of interest rates and the determinants of bond yields.
Chapter 16 introduces you to short-term financial planning. After completing this unit, you should be able to: Be able to compute the operating and cash cycles and understand why they are important, understand the different types of short-term financial policy, understand the essentials of short-term financial planning.