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TOC
Current
Table of Contents
About the Authors
Dedication
Preface
Acknowledgments
1
Introduction to Finance
1.1
The Financial System
1.2
Money and Capital Markets
1.3
Primary and Secondary Markets
1.4
Corporate Governance
1.5
Six Important Ideas in Finance
2
Financial Statements and Ratio Analysis
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2.1
The Financial Statements
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2.2
The Goals of Financial Analysis
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2.3
Financial Statement and Ratio Analysis
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2.4
Common-Sized Financial Statements
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2.5
DuPont Ratio Analysis
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2.6
Putting the Ratios to Work
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3
Introduction to the Time Value of Money
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3.1
Interest and Timelines
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3.2
Future Value of a Sum
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3.3
The Effective Interest Rate
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3.4
Solving for Rate and Time Periods
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3.5
Present Value of a Sum
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4
Annuities and Loans
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4.1
Future Value of Streams of Payments
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4.2
Present Value of Streams of Payments
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4.3
Help with Advanced Time Value Problems
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4.4
Balloon Loans
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4.5
Amortized Loans
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5
Introduction to Risk and Return
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5.1
The Risk–Return Relationship
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5.2
Computing the Return on a Single Asset
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5.3
Evaluating the Risk of Holding a Single Asset
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5.4
Computing the Expected Return for a Portfolio of Assets
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5.5
Evaluating the Risk of a Portfolio of Assets
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6
Portfolio Theory
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6.1
Diversification
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6.2
The Market Portfolio
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6.3
Systematic Risk
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6.4
Portfolios with the Risk-Free Asset
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6.5
Risk and Return in Equilibrium
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7
Interest Rates and Bonds
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7.1
Zero Coupon Bond Features and Markets
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7.2
Zero Coupon Bond Yields and Pricing
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7.3
Determinants of the Shape of the Yield Curve
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7.4
Coupon Bond Features and Markets
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7.5
Coupon Bond Yields and Pricing
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7.6
Coupon Bond Price Properties
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7.7
Appendix: Forward Rates, Expectations, and Maturity Preference
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8
Stock Valuation and Market Efficiency
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8.1
Features of Stocks and Stock Markets
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8.2
Valuation of Preferred Stock
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8.3
The Valuation of Common Stock Using the Dividend Discount Model
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8.4
Stock Repurchases and the Total Payout Model
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8.5
Price Earnings Valuation Method
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8.6
The Efficient Markets Hypothesis
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9
Capital Budgeting: Introduction and Techniques
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9.1
Why Do Capital Budgeting?
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9.2
Steps in the Capital Budgeting Process
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9.3
Overview of Techniques for Analyzing Projects
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9.4
Net Present Value and Profitability Index
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9.5
Internal Rate of Return and MIRR
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10
Capital Budgeting: Estimating Cash Flows
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10.1
Free Cash Flow
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10.2
Expansion Projects: Basic
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10.3
Replacement Projects: Basic
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10.4
Capital Budget Refinements
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10.5
Appendix 1: Expansion Projects Using CCA
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10.6
Appendix 2: Replacement Projects Using CCA
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11
Cost of Capital
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11.1
Why Compute the Cost of Capital
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11.2
After-Tax Cost of Debt
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11.3
Cost of Preferred Stock
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11.4
Cost of Common Stock
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11.5
Computing a Weighted Average Cost of Capital
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11.6
Divisional Cost of Capital
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12
Capital Structure
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12.1
Measures of Leverage
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12.2
The Effects of Leverage
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12.3
Capital Structure with No Taxes
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12.4
Capital Structure with Taxes
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12.5
The Static Trade-Off Theory
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13
Dividends, Repurchases, and Splits
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13.1
Distributions
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13.2
Dividends
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13.3
Stock Repurchases
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13.4
Stock Dividends and Splits
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14
Financial Planning and Forecasting
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14.1
Sales Forecasting
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14.2
Cash Budgeting
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14.3
Financial Statements Forecasting
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14.4
Additional Funds Needed and Growth
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15
The Management of Working Capital
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15.1
The Operating Period and Cash Conversion Cycle
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15.2
How to Manage Inventory
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15.3
How to Manage Accounts Receivable
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15.4
How to Manage Cash
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15.5
Short-Term Financing Alternatives
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16
International Finance
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16.1
Basics of Exchange Rates
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16.2
How Exchange Rates Are Established
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16.3
Interest Rate Parity
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16.4
International Finance Risk
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16.5
Foreign Investments
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17
Corporate Valuation
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17.1
Advanced Financial Statements Forecasting
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17.2
Free Cash Flow
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17.3
Discounted Free Cash Flow Valuation
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17.4
Discounted Cash Flow to Equity
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17.5
Relative Valuation
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18
Futures and Options
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18.1
Forward Contracts
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18.2
Futures Contracts
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18.3
Hedging with Futures Contracts
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18.4
Option Contracts
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18.5
Option Payoffs and Profits
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18.6
Option Pricing
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19
Mergers and Acquisitions
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19.1
The Basic Terminology of Mergers and Acquisitions
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19.2
The Economic Gains to Mergers
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19.3
Evaluating Acquisitions
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19.4
Defense Tactics
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20
Advanced Capital Structure
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20.1
Leverage and a Fixed D/V Ratio
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20.2
Leverage and Systematic Risk
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20.3
Summary of Capital Structure Theory
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20.4
Other Effects of Leverage
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