Essentials of Finance: An Integrated Approach - Hardcover

Gallinger, George W.; Poe, Jerry B.

Hardcover

ISBN 10: 0131424165 ISBN 13: 9780131424166

Publisher: Pearson College Div, 1995

Synopsis

New core entry. Integrates corporate finance with markets andinstitutions and investments. Authors show relevance offinance to other business disciplines. Practical approach.International materials are seamlessly woven throughout ( Video Cases appear at the end of each chapter.)1. Introduction to Finance.Traditional Finance Markets. Guiding Principles of Finance. Elements Common to the Three Areas of Finance. Relationship of Finance to Other Disciplines. Ethics and Finance. The Next Checking Back to Accounting and Economics.2. Review of financial Statements.The Accounting Versus Finance Perspective. An Overview of the Annual Report.3. An Overview of the Financial System.The Economic System. Structure of Interest Rates. Federal Reserve System. Fed Watching. The Next Step.4. The Time Value of Money.Simple Interest. Compound Interest. Add-On Interest. Bank Discount Method.5. Risk, Return, and the CAPM.Evaluating Risk. Risk Aversion. Diversifying to Reduce Risk. The Capital Asset Pricing Model. Some Cautions About Beta. The Next Step.6. Financial Markets.Financial Intermediation. The Money and Capital Markets. The Primary Markets. The Secondary Markets. The Next Step.7. Fixed Income Securities.What Is Debt? Advantages of Debt. Rating Debt Securities. Corporate Bonds. Government and Agency Debt Securities. Municipal Bonds. Preferred Stock.8. Valuation of Fixed-Income Securities.What Are the Return Measures for Bond Prices? How Return Measures Interact with the Bond Price. Effect of Changing Yield Curves on Bond Prices. Duration Analysis and Price Comparison. Convertible Bonds. Preferred Stock.9.Common Stock and Its Valuation.Distinguishing Features of Common Stock. Reading the Stock Tables and Placing an Order. Common Stock Valuation. Valuation and Dividend Policy.10. Efficient Financial Markets.A Competitive Market System. The Efficient Market Hypothesis. Implications of the Efficient Market Hypothesis. Evidence for and Against Market Efficiency. Some Cautions About EMH and Technical Analysis. The Next Step.11. Creating Shareholder Value.The Corporate Value-Exchange System. How is Shareholder Value Created? Finding Shareholder Value in the Business Environment.12. The Cost of CapitalThe Cost of Debt. The Cost of Preferred Stock. The Cost of Equity. The Weighted Average Cost of Capital. The Relationship Between Firm Value and WACC. An Optimal Capital Structure.13. Capital Structure Management.Practical Issues About Capital Structure. Business Risk Versus Financial Risk. Effecting Changes in Capital Structure. The Next Step.14. Capital Decision Process and Models.What Is the Capital Investment Problem? Project Evaluation Models. The Time Value Comparing IRR and NPV. Capital Rationing.15. Capital Identifying Relevant Cash Flows.Identifying Relevant Cash Flows. Calculating Cash Flows. Unequal Lives Problem. Applications.16. Short-Term Business Investment.Investment in Cash. Investment in Accounts Receivable. Investment in Inventory. Monitoring Short-Term Investment.17. Short-Term Financing.Types of Bank Loans. The Cost of the Loan. Other Sources of Funds.18. Financial Statement Analysis.Common-Size Analysis and Trends. Statement of Cash Flows. Ratio Analysis. Interpretation of the Analysis. Industry Figures.19. Financial Planning.Noncontrollable and Controllable Effects on Financial Planning. Planning Goals. Planning Assumptions. Preparation of the Financial Forecast. Analysis of the Financial Forecasts.

About this title

From the Publisher

Understanding that, for the majority of students, taking corporate finance may be their only exposure to the discipline, Essentials of Finance offers a broader perspective of finance, including corporate, investments, and financial markets and institutions. The first of its kind, this text recognizes that finance touches many aspects of business and everyday life, making it important for students in all business disciplines to have a broader understanding of finance. With an integrative approach, this unique text provides both majors and non-majors with a working knowledge of the terms, environment, and mechanics of finance and financial decision making, giving them an understanding of the importance of concepts related to creating shareholder value.

From the Back Cover

New core entry. Integrates corporate finance with markets and institutions and investments. Authors show relevance of finance to other business disciplines. Practical approach. International materials are seamlessly woven throughout the book.

Edition details

• Publisher: Pearson College Div
• Publication date: 1995
• Language: English
• ISBN 10: 0131424165
• ISBN 13: 9780131424166
• Binding: Hardcover
• Number of pages: 835