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32.1 Terminology 32.2 Foreign Exchange Markets and Exchange Rates 32.3 The Law of One Price and Purchasing Power Parity 32.4 Interest Rates and Exchange Rates: Interest Rate Parity 32.5 International Capital Budgeting 32.6 International Financial Decisions 32.7 Reporting Foreign Operations 32.8...

31.1 What is Financial Distress? 31.2 What Happens in Financial Distress? 31.3 Bankruptcy Liquidation and Reorganization 31.4 Current Issues in Financial Distress 31.5 The Decision to Seek Court Protection: The Case of Olympia and York 31.6 Summary and Conclusions Appendix 31-A: Predicting...

30.1 The Basic Forms of Acquisitions 30.2 The Tax Forms of Acquisitions 30.3 Accounting for Acquisitions 30.4 Determining the Synergy from an Acquisition 30.5 Source of Synergy from Acquisitions 30.6 Calculating the Value of the Firm after an Acquisition 30.7 A Cost to Stockholders from...

29.1 Terms of the Sale 29.2 The Decision to Grant Credit: Risk and Information 29.3 Optimal Credit Policy 29.4 Credit Analysis 29.5 Collection Policy 29.6 Other Aspects of Credit Policy 29.7 Summary & Conclusions

28.1 Reasons for Holding Cash 28.2 Determining the Target Cash Balance 28.3 Managing the Collection and Disbursement of Cash 28.4 Investing Idle Cash 28.5 Summary & Conclusions

27.1 Tracing Cash and Net Working Capital 27.2 Defining Cash in Terms of Other Elements 27.3 The Operating Cycle and the Cash Cycle 27.4 Some Aspects of Short-Term Financial Policy 27.5 Cash Budgeting 27.6 The Short-Term Financial Plan 27.7 Summary & Conclusions

26.1 What is Corporate Financial Planning? 26.2 A Financial Planning Model: The Ingredients 26.3 What Determines Growth? 26.4 Some Caveats of Financial Planning Models 26.5 Summary & Conclusions

25.1 Forward Contracts 25.2 Futures Contracts 25.3 Hedging 25.4 Interest Rate Futures Contracts 25.5 Duration Hedging 25.6 Swap Contracts 25.7 Actual Use of Derivatives 25.8 Summary & Conclusions

This chapter describes the basic features of warrants and convertibles. The important questions are: How can warrants and convertibles be valued? What impact do warrants and convertibles have on firm value? What are the differences between warrants, convertibles, and call options? Under what...

22.1 Options 22.2 Call Options 22.3 Put Options 22.4 Selling Options 22.5 Stock Option Quotations 22.6 Combinations of Options 22.7 Valuing Options 22.8 An Option‑Pricing Formula 22.9 Stocks and Bonds as Options 22.10 Capital-Structure Policy and Options 22.11 Mergers and Options 22.12...

21.1 Types of Leases 21.2 Accounting and Leasing 21.3 Taxes and Leases 21.4 The Cash Flows of Leasing 21.5 A Detour on Discounting and Debt Capacity with Corporate Taxes 21.6 NPV Analysis of the Lease-versus-Buy Decision 21.7 Debt Displacement and Lease Valuation 21.8 Does Leasing Ever Pay: The...

20.1 Long Term Debt: A Review 20.2 The Public Issue of Bonds 20.3 Bond Refunding 20.4 Bond Ratings 20.5 Some Different Types of Bonds 20.6 Direct Placement Compared to Public Issues 20.7 Long-Term Syndicated Bank Loans 20.8 Summary and Conclusions

19.1 The Public Issue 19.2 The Basic Procedure for a New Issue 19.3 The Cash Offer 19.4 The Announcement of New Equity and the Value of the Firm 19.5 The Cost of Issuing Securities 19.6 Rights 19.7 The Private Equity Market 19.8 Summary and Conclusions

18.1 Different Types of Dividends 18.2 Standard Method of Cash Dividend Payment 18.3 The Benchmark Case: An Illustration of the Irrelevance of Dividend Policy 18.4 Taxes, Issuance Costs, and Dividends 18.5 Repurchase of Shares 18.6 Expected Return, Dividends, and Personal Taxes 18.7 Real...

17.1 Adjusted Present Value Approach 17.2 Flows to Equity Approach 17.3 Weighted Average Cost of Capital Method 17.4 A Comparison of the APV, FTE, and WACC Approaches 17.5 Capital Budgeting for Projects that are Not Scale-Enhancing 17.6 APV Example 17.7 Beta and Leverage 17.8 Summary and Conclusions

16.1 Costs of Financial Distress 16.2 Description of Costs 16.3 Can Costs of Debt Be Reduced? 16.4 Integration of Tax Effects and Financial Distress Costs 16.5 Shirking, Perquisites, and Bad Investments: A Note on Agency Cost of Equity 16.6 The Pecking-Order Theory 16.7 Growth and the...

15.1 The Capital-Structure Question and The Pie Theory 15.2 Maximizing Firm Value versus Maximizing Stockholder Interests 15.3 Financial Leverage and Firm Value: An Example 15.4 Modigliani and Miller: Proposition II (No Taxes) 15.5 Taxes 15.6 Summary and Conclusions

14.1 Common Stock 14.2 Corporate Long-Term Debt: The Basics 14.3 Preferred Stock 14.4 Patterns of Financing 14.5 Recent Trends in Capital Structure 14.6 Summary and Conclusions

12.1 The Cost of Equity Capital 12.2 Estimation of Beta 12.3 Determinants of Beta 12.4 Extensions of the Basic Model 12.5 Estimating Bombardier’s Cost of Capital 12.6 Reducing the Cost of Capital 12.7 Summary and Conclusions

11.1 Factor Models: Announcements, Surprises, and Expected Returns 11.2 Risk: Systematic and Unsystematic 11.3 Systematic Risk and Betas 11.4 Portfolios and Factor Models 11.5 Betas and Expected Returns 11.6 The Capital Asset Pricing Model and the Arbitrage Pricing Theory 11.7 Parametric...