Business Finance Essentials

by Kevin Bracker, Fang Lin, Jennifer Pursley

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Publisher
Pittsburg State University
Subjects
Business
Licence
CC BY-NC 4.0, as LibreTexts states it. Non-commercial use only.
Who can read
Tweens profiles and older, judged from its title and subjects

Contents

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  1. Front Matter
  2. TitlePage
  3. InfoPage
  4. Table of Contents
  5. Licensing
  6. About the Authors
  7. 1: Introduction to Financial Management
  8. 1.1: What is Finance?
  9. 1.2: Forms of Business Organization
  10. 1.3: Advantages of Corporations
  11. 1.4: Disadvantages of Corporations
  12. 1.5: Stocks vs. Bonds
  13. 1.6: Goals of the Financial Manager
  14. 1.7: Risk Aversion
  15. 1.8: Social Responsibility and Ethics
  16. 1.9: International Issues
  17. 1.10: Agency Relationships
  18. 1.11: Key Takeaways
  19. 1.12: Exercises
  20. 1.13: References and Attributions
  21. 2: Financial Statement Analysis
  22. 2.1: Key Financial Statements
  23. 2.2: Financial Statements Analysis
  24. 2.3: Who Uses Financial Statement Analysis?
  25. 2.4: Putting it All Together
  26. 2.5: Key Takeaways
  27. 2.6: Exercises
  28. 2.7: Problems
  29. 2.8: References and Attributions
  30. 3: Time Value of Money
  31. 3.1: The Power of Compound Interest
  32. 3.2: Future Value
  33. 3.3: Present Value
  34. 3.4: Annuities
  35. 3.5: Solving for PMT, I/YR, or N
  36. 3.6: Perpetuities
  37. 3.7: Uneven Cash Flow Streams
  38. 3.8: Non-Annual Compounding
  39. 3.9: Return to Future Value Tables
  40. 3.10: Complex Time Value of Money Problems
  41. 3.11: Key Takeaways
  42. 3.12: Exercises
  43. 3.13: Problems
  44. 3.14: References and Attributions
  45. 4: Valuation and Bond Analysis
  46. 4.1: Valuation Concepts
  47. 4.2: Three-Step Valuation Process
  48. 4.3: Bond Pricing
  49. 4.4: Bond Prices and Interest Rates
  50. 4.5: Yield-to-Maturity (YTM)
  51. 4.6: Call Provisions
  52. 4.7: Zero Coupon Bonds
  53. 4.8: Bond Ratings and Default Risk
  54. 4.9: Key Takeaways
  55. 4.10: Exercises
  56. 4.11: Problems
  57. 4.12: References and Attributions
  58. 5: Stocks and Stock Valuation
  59. 5.1: Stock Valuation
  60. 5.2: Market Efficiency
  61. 5.3: Par Value vs. Book Value vs. Market Value
  62. 5.4: Rights and Privileges of Common Stockholders
  63. 5.5: Stock Valuation in a Non-Textbook World
  64. 5.6: Key Takeaways
  65. 5.7: Exercises
  66. 5.8: Problems
  67. 5.9: References and Attributions
  68. 6: The Financial System and Interest Rates
  69. 6.1: Financial System
  70. 6.2: Components of the Financial System
  71. 6.3: Key Market Distinctions
  72. 6.4: More on Financial Markets
  73. 6.5: Determinants of Interest Rates
  74. 6.6: Further Discussion of Interest Rate Determinants
  75. 6.7: The Yield Curve
  76. 6.8: The Federal Reserve System
  77. 6.9: Key Takeaways
  78. 6.10: Exercises
  79. 6.11: References and Attributions
  80. 7: Risk Analysis
  81. 7.1: What is Risk?
  82. 7.2: Expected Return and Standard Deviation of a Single Security
  83. 7.3: Interpreting Expected Return and Standard Deviation
  84. 7.4: Expected Return and Standard Deviation of a Portfolio
  85. 7.5: Diversifiable and Non-Diversifiable Risk
  86. 7.6: Beta
  87. 7.7: How do we Interpret Beta?
  88. 7.8: Standard Deviation vs. Beta
  89. 7.9: Beta and Required Return- Capital Asset Pricing Model (CAPM)
  90. 7.10: Important Implications of the CAPM/SML
  91. 7.11: Empirical Findings of the SML
  92. 7.12: Key Takeaways
  93. 7.13: Exercises
  94. 7.14: Problems
  95. 7.15: References and Attributions
  96. 8: Introduction to Capital Budgeting
  97. 8.1: What is Capital Budgeting?
  98. 8.2: Mutually Exclusive vs. Independent Projects
  99. 8.3: Capital Budgeting Decision Criteria
  100. 8.4: Capital Budgeting Process
  101. 8.5: Capital Budgeting Decision Techniques
  102. 8.6: Capital Budgeting in Practice
  103. 8.7: Key Takeaways
  104. 8.8: Exercises
  105. 8.9: Problems
  106. 8.10: References and Attributions
  107. 9: Mutual Funds, IRAs and 401(k) Plans
  108. 9.1: Retirement
  109. 9.2: Mutual Funds
  110. 9.3: Individual Retirement Accounts (2021)
  111. 9.4: 401(k) PLANS
  112. 9.5: Key Takeaways
  113. 9.6: Exercises
  114. 9.7: References and Attributions
  115. 10: Marginal Cost of Capital
  116. 10.1: What is the Marginal Cost of Capital?
  117. 10.2: When is the MCC appropriately used as the required return for capital budgeting?
  118. 10.3: The Key Components of the Cost of Capital
  119. 10.4: Estimating the Market Value Weights of the Financing Components
  120. 10.5: Estimating the After-Tax Cost of Debt
  121. 10.6: Estimating the Cost of Preferred Stock
  122. 10.7: Estimating the Cost of Common Stock
  123. 10.8: MCC Example
  124. 10.9: Capital Structure
  125. 10.10: Key Takeaways
  126. 10.11: Exercises
  127. 10.12: Problem
  128. 10.13: References and Attributions
  129. 11: International Finance
  130. 11.1: Why Do Firms Establish International Operations?
  131. 11.2: Difficulties in International Operations
  132. 11.3: Currency Issues
  133. 11.4: Factors Influencing Exchange Rates
  134. 11.5: Types of Currency Quotations
  135. 11.6: Currency Conversion
  136. 11.7: Strengthening vs. Weakening Currencies
  137. 11.8: Cross Currency Exchange Rates
  138. 11.9: Spot vs. Forward Rates
  139. 11.10: Hedging vs. Speculating
  140. 11.11: International Investing
  141. 11.12: Key Takeaways
  142. 11.13: Exercises
  143. 11.14: Problems
  144. 11.15: References and Attributions
  145. 12: Appendix A- Financial Tables
  146. 13: Appendix B
  147. 13.1: Explanations of Ratios (CH 2)
  148. 13.2: Financial Statement Analysis Guided Tutorial (CH 2)
  149. 13.3: Financial Statements from Walmart and Target (CH 2)
  150. 13.4: Financial Statements for Joe's Gadgets (CH2)
  151. 13.5: Table- Future Value of a $250 per month investment (CH3)
  152. 13.6: Setting up Your Financial Calculator (CH3)
  153. 13.7: TVM 5-Key Approach Guided Tutorials with TI-BAII+ (CH3)
  154. 13.8: TVM 5-Key Approach Guided Tutorial with HP10BII+ (CH3)
  155. 13.9: TVM 5-Key Approach Guided Tutorial with TI-83 or TI-84 (CH3)
  156. 13.10: Bond Rating Scales (CH 4)
  157. 13.11: Efficient Markets Hypothesis (CH 5)
  158. 13.12: Sample of Stock Information (CH 5)
  159. 13.13: Stock Valuation Guided Tutorial with Calculations (CH 5)
  160. 13.14: Observed Correlations, Returns, Standard Deviations and Betas Table (CH 7)
  161. 13.15: Risk and Return Guided Tutorial (CH 7)
  162. 13.16: Table- Correlations, Returns and St. Deviations Across National Equity Markets (CH11)
  163. 13.17: Table- Foreign currency relative to US dollar in 2020 (CH11)
  164. 14: Solutions to Chapter Exercises
  165. 14.1: Solutions to CH 1 Exercises
  166. 14.2: Solutions to CH 2 Exercises
  167. 14.3: Solutions to CH 3 Exercises
  168. 14.4: Solutions to CH 4 Exercises
  169. 14.5: Solutions to CH 5 Exercises
  170. 14.6: Solutions to CH 6 Exercises
  171. 14.7: Solutions to CH 7 Exercises
  172. 14.8: Solutions to CH 8 Exercises
  173. 14.9: Solutions to CH 9 Exercises
  174. 14.10: Solutions to CH 10 Exercises
  175. 14.11: Solutions to CH 11 Exercises
  176. Back Matter
  177. Index
  178. Glossary
  179. Detailed Licensing
  180. Detailed Licensing