22673cam a2200445 a 4500 a9903454 SIRSI 20260825115709.0 101025t20122012maua 001 0 eng 2010044526 9780273754282 (pbk.) 0273754289 (pbk.) DLC eng DLC YDX YDXCP BWX CDX TTU BDX NhCcYME UtOrBLW rda 658.15 22 G.L.P Gitman, Lawrence J., author. 360 Principles of managerial finance / Lawrence J. Gitman, Chad J. Zutter. Thirteenth edition. Global edition. Boston : Pearson Prentice Hall, [2012] ©2012 lii, 796 pages, 94 unnumbered pages : illustrations (some color) ; 27 cm. text txt rdacontent unmediated n rdamedia volume nc rdacarrier Includes index. Machine generated contents note: pt. 1 Introduction to Managerial Finance -- 1.The Role of Managerial Finance -- Facebook---In No Hurry to Go Public -- 1.1.Finance and Business -- What is Finance? -- Career Opportunities in Finance -- Legal Forms of Business Organization -- Focus on Practice: Professional Certifications in Finance -- Why Study Managerial Finance? -- Review Questions -- 1.2.Goal of the Firm -- Maximize Shareholder Wealth -- Maximize Profit? -- What About Stakeholders? -- The Role of Business Ethics -- Review Questions -- Focus on Ethics: Will Google Live Up to Its Motto? -- 1.3.Managerial Finance Function -- Organization of the Finance Function -- Relationship to Economics -- Relationship to Accounting -- Primary Activities of the Financial Manager -- Review Questions -- 1.4.Governance and Agency -- Corporate Governance -- The Agency Issue -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problem -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 2.The Financial Market Environment -- JPMorgan Chase & Co---Cut to the Chase -- 2.1.Financial Institutions and Markets -- Financial Institutions -- Commercial Banks, Investment Banks, and the Shadow Banking System -- Financial Markets -- The Relationship Between Institutions and Markets -- The Money Market -- The Capital Market -- Focus on Practice: Berkshire Hathaway---Can Buffett Be Replaced? -- Focus on Ethics: The Ethics of Insider Trading -- Review Questions -- 2.2.The Financial Crisis -- Financial Institutions and Real Estate Finance -- Falling Home Prices and Delinquent Mortgages -- Crisis of Confidence in Banks -- Spillover Effects and the Great Recession -- Review Questions -- 2.3.Regulation of Financial Institutions -- Regulations Governing Financial Institutions -- Regulations Governing Financial Markets -- Review Questions -- 2.4.Business Taxes -- Ordinary Income -- Capital Gains -- Review Questions -- Summary -- Opner-in-Review -- Self-Test Problem -- Warm-Up Exercises -- Problems -- Spreadsheet Exercises -- Intogrative Caso 1 Merit Enterprise Corp -- pt. 2 Financial Tools -- 3.Financial Statements and Ratio Analysis -- Abercrombie & Fitch---The Value of Casual Luxury -- 3.1.The Stockholders' Report -- The Letter to Stockholders -- Global Focus: More Countries Adopt International Financial Reporting Standards -- The Four Key Financial Statements -- Focus on Ethics: Taking Earnings Reports at Face Value -- Notes to the Financial Statements -- Consolidating International Financial Statements -- Review Questions -- 3.2.Using Financial Ratios -- Interested Parties -- Types of Ratio Comparisons -- Cautions About Using Ratio Analysis -- Categories of Financial Ratios -- Review Questions -- 3.3.Liquidity Ratios -- Current Ratio -- Quick (Acid-Test) Ratio -- Review Questions -- 3.4.Activity Ratios -- Inventory Turnover -- Average Collection Period -- Average Payment Period -- Total Asset Turnover -- Review Question -- 3.5.Debt Ratios -- Debt Ratio -- Times Interest Earned Ratio -- Fixed-Payment Coverage Ratio -- Review Questions -- 3.6.Profitability Ratios -- Common-Size Income Statements -- Gross Profit Margin -- Operating Profit Margin -- Net Profit Margin -- Earnings Per Share (EPS) -- Return on Total Assets (ROA) -- Return on Common Equity (ROE) -- Review Questions -- 3.7.Market Ratios -- Price/Earnings (P/E) Ratio -- Market/Book (M/B) Ratio -- Review Question -- 3.8.A Complete Ratio Analysis -- Summarizing All Ratios -- Dupont System of Analysis -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 4.Cash Flow and Financial Planning -- Apple---Investors Want Apple to Take a Bite Out of its Cash Hoard -- 4.1.Analyzing the Firm's Cash Flow -- Depreciation -- Depreciation Methods -- Developing the Statement of Cash Flows -- Free Cash Flow -- Focus on Practice: Free Cash Flow at Cisco Systems -- Review Questions -- 4.2.The Financial Planning Process -- Long-Term (Strategic) Financial Plans -- Short-Term (Operating) Financial Plans -- Focus on Ethics: How Much Is a CEO Worth? -- Review Questions -- 4.3.Cash Planning: Cash Budgets -- The Sales Forecast -- Preparing the Cash Budget -- Evaluating the Cash Budget -- Coping with Uncertainty in the Cash Budget -- Cash Flow within the Month -- Review Questions -- 4.4.Profit Planning: Pro Forma Statement -- Preceding Year's Financial Statements -- Sales Forecast -- Review Question -- 4.5.Preparing the Pro Forma Income Statement -- Considering Types of Costs and Expenses -- Review Questions -- 4.6.Preparing the Pro Forma Balance Sheet -- Review Questions -- 4.7.Evaluation of Pro Forma Statements -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 5.Time Value of Money -- Eli Lilly and Company---Riding the Pipeline -- 5.1.The Role of Time Value in Finance -- Future Value versus Present Value -- Computational Tools -- Basic Patterns of Cash Flow -- Review Questions -- 5.2.Single Amounts -- Future Value of a Single Amount -- Present Value of a Single Amount -- Review Questions -- 5.3.Annuities -- Types of Annuities -- Finding the Future Value of an Ordinary Annuity -- Finding the Present Value of an Ordinary Annuity -- Finding the Future Value of an Annuity Due -- Finding the Present Value of an Annuity Due -- Finding the Present Value of a Perpetuity -- Review Questions -- 5.4.Mixed Streams -- Future Value of a Mixed Stream -- Present Value of a Mixed Stream -- Review Question -- 5.5.Compounding Interest More Frequentily Than Annually -- Semiannual Compounding -- Quarterly Compounding -- A General Equation for Compounding More Frequently Than Annually -- Using Computational Tools for Compounding More Frequently Than Annually -- Continuous Compounding -- Nominal and Effective Annual Rates of Interest -- Focus on Ethics: How Fair Is "Check into Cash"? -- Review Questions -- 5.6.Special Applications of Time Value -- Determining Deposits Needed to Accumulate a Future Sum -- Loan Amortization -- Focus on Practice: New Century Brings Trouble for Subprime Mortgages -- Finding Interest or Growth Rates -- Finding an Unknown Number of Periods -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- Integrative Case 2 Track Software, Inc. -- pt. 3 Valuation of Securities -- 6.Interest Rates and Bond Valuation -- The Federal Debt---A Huge Appetite for Money -- 6.1.Interest Rates and Required Returns -- Interest Rate Fundamentals -- Focus on Practice: Bonds Adjust for Inflation -- Term Structure of Interest Rates -- Risk Premiums: Issuer and Issue Characteristics -- Review Questions -- 6.2.Corporate Bonds -- Legal Aspects of Corporate Bonds -- Cost of Bonds to the Issuer -- General Features of a Bond Issue -- Bond Yields -- Bond Prices -- Bond Ratings -- Focus on Ethics: Can We Trust the Bond Raters? -- Common Types of Bonds -- International Bond Issues -- Review Questions -- 6.3.Valuation Fundamentals -- Key Inputs -- Basic Valuation Model -- Review Questions -- 6.4.Bond Valuation -- Bond Fundamentals -- Basic Bond Valuation -- Bond Value Behavior -- Yield to Maturity (YTM) -- Semiannual Interest and Bond Values -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 7.Stock Valuation -- A123 Systems Inc.---Going Green to Find Value -- 7.1.Differences between Debt and Equity -- Voice in Management -- Claims on Income and Assets -- Maturity -- Tax Treatment -- Review Questions -- 7.2.Common and Preferred Stock -- Common Stock -- Preferred Stock -- Issuing Common Stock -- Review Questions -- 7.3.Common Stock Valuation -- Market Efficiency -- The Efficient-Market Hypothesis -- Focus on Practice: Understanding Human Behavior Helps Us Understand Investor Behavior -- Basic Common Stock Valuation Equation -- Free Cash Flow Valuation Model -- Other Approaches to Common Stock Valuation -- Focus on Ethics: Psst---Have You Heard Any Good Quarterly Earnings Forecasts Lately? -- Review Questions -- 7.4.Decision Making and Common Stock Value -- Changes in Expected Dividends -- Changes in Risk -- Combined Effect -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- Integrative Case 3 Encore International -- pt. 4 Risk and the Required Rate of Return -- 8.Risk and Return -- Mutual Funds---Fund's Returns Not Even Close to Average -- 8.1.Risk and Return Fundamentals -- Risk Defined -- Focus on Ethics: If It Seems Too Good to Be True Then It Probably Is -- Return Defined -- Risk Preferences -- Review Questions -- 8.2.Risk of a Single Asset -- Risk Assessment -- Risk Measurement -- Review Questions -- 8.3.Risk of a Portfolio -- Portfolio Return and Standard Deviation -- Correlation -- Diversification -- Correlation, Diversification, Risk, and Return -- International Diversification -- Global Focus: An International Flavor to Risk Reduction -- Review Questions -- 8.4.Risk and Return: The Capital Asset Pricing Model (CAPM) -- Types of Risk -- The Model: CAPM -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 9.The Cost of Capital -- General Electric---Falling Short of Expectations -- 9.1.Overview of the Cost of Capital -- The Basic Concept -- Focus on Ethics: The Ethics of Profit -- Sources of Long-Term Capital -- Review Questions -- 9.2.Cost of Long-Term Debt -- Net Proceeds -- Before-Tax Cost of Debt -- After-Tax Cost of Debt -- Review Questions -- 9.3.Cost of Preferred Stock -- Preferred Stock Dividends -- Calculating the Cost of Preferred Stock -- Review Questions -- 9.4.Cost of Common Stock -- Finding the Cost of Common Stock Equity -- Stock Equity -- Cost of Retained Earnings -- Cost of New Issues of Common Stock -- Review Questions -- Contents note continued: 9.5.Weighted Average Cost of Capital -- Calculating Weighted Average Cost of Capital (WACC) -- Focus on Practice: Uncertain Times Make for an Uncertain Weighted Average Cost of Capital -- Weighting Schemes -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- Integrative Case 4 Eco Plastics Company -- pt. 5 Long-Term Investment Decisions -- 10.Capital Budgeting Techniques -- Genco Resources---The Gold Standard for Evaluating Gold Mines -- 10.1.Overview of Capital Budgeting -- Motives for Capital Expenditure -- Steps in the Process -- Basic Terminology -- Capital Budgeting Techniques -- Review Questions -- 10.2.Payback Period -- Decision Criteria -- Pros and Cons of Payback Analysis -- Focus on Practice: Limits on Payback Analysis -- Review Questions -- 10.3.Net Present Value (NPV) -- Decision Criteria -- NPV and the Profitability Index -- NPV and Economic Value Added -- Review Questions -- 10.4.Internal Rate of Return (IRR) -- Decision Criteria -- Calculating the IRR -- Review Questions -- 10.5.Comparing NPV and IRR Techniques -- Net Present Value Profiles -- Conflicting Rankings -- Which Approach Is Better? -- Focus on Ethics: Nonfinancial Considerations in Project Selection -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 11.Capital Budgeting Cash Flows -- ExxonMobil---Maintaining Its Project Inventory -- 11.1.Relevant Cash Flows -- Major Cash Flow Components -- Focus on Ethics: A Question of Accuracy -- Expansion versus Replacement Decisions -- Sunk Costs and Opportunity Costs -- International Capital Budgeting and Long-Term Investments -- Review Questions -- Global Focus: Changes May Influence Future Investments in China -- 11.2.Finding the Initial Investment -- Installed Cost of New Asset -- After-Tax Proceeds from Sale of Old Asset -- Change in Net Working Capital -- Calculating the Initial Investment -- Review Questions -- 11.3.Finding the Operating Cash Inflows -- Interpreting the Term After-Tax -- Interpreting the Term Cash Inflows -- Interpreting the Term Incremental -- Review Questions -- 11.4.Finding the Terminal Cash Flow -- Proceeds from Sale of Assets -- Taxes on Sale of Assets -- Change in Net Working Capital -- Review Questions -- 11.5.Summarizing the Relevant Cash Flows -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 12.Risk and Refinements in Capital Budgeting -- BP---Worst Case Scenario -- 12.1.Introduction to Risk in Capital Budgeting -- Review Questions -- 12.2.Behavioral Approaches for Dealing with Risk -- Risk and Cash Inflows -- Scenario Analysis -- Simulation -- Focus on Practice: The Monte Carlo Method: The Forecast Is for Less Uncertainty -- Review Questions -- 12.3.International Risk Considerations -- Review Questions -- 12.4.Risk-Adjusted Discount Rates -- Determining Risk-Adjusted Discount Rates (RADRS) -- Focus on Ethics: Ethics and the Cost of Capital -- Applying RADRs -- Portfolio Effects -- RADRs in Practice -- Review Questions -- 12.5.Capital Budgeting Refinements -- Comparing Projects with Unequal Lives -- Recognizing Real Options -- Capital Rationing -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- Integrative Case 5 Lasting Impressions Company -- pt. 6 Long-Term Financial Decisions -- 13.Leverage and Capital Structure -- Genzyme Corp---Trading Equity for Debt -- 13.1.Leverage -- Breakeven Analysis -- Operating Leverage -- Focus on Practice: Adobe's Leverage -- Financial Leverage -- Total Leverage -- Focus on Ethics: Repo 105 -- Review Questions -- 13.2.The Firm's Capital Structure -- Types of Capital -- External Assessment of Capital Structure -- Capital Structure of Non-U.S. Firms -- Capital Structure Theory -- Optimal Capital Structure -- Review Questions -- 13.3.EBIT-EPS Approach to Capital Structure -- Presenting a Financing Plan Graphically -- Comparing Alternative Capital Structures -- Considering Risk in EBIT-EPS Analysis -- Basic Shortcoming of EBIT-EPS Analysis -- Review Questions -- 13.4.Choosing the Optimal Capital Structure -- Linkage -- Estimating Value -- Maximizing Value versus Maximizing EPS -- Some Other Important Considerations -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 14.Payout Policy -- Best Buy---Paybock Time -- 14.1.The Basics of Payout Policy -- Elements of Payout Policy -- Trends in Earnings and Dividends -- Trends in Dividends and Share Repurchases -- Focus on Ethics: Are Buybacks Really a Bargain? -- Review Questions -- 14.2.The Mechanics of Payout Policy -- Cash Dividend Payment Procedures -- Share Repurchase Procedures -- Tax Treatment of Dividends and Repurchases -- Focus on Practice: Capital Gains and Dividend Tax Treatment Extended to 2010 -- Dividend Reinvestment Plans -- Stock Price Reactions to Corporate Payouts -- Review Questions -- 14.3.Relevance of Payout Policy -- Residual Theory of Dividends -- The Dividend Irrelevance Theory -- Arguments for Dividend Relevance -- Review Questions -- 14.4.Factors Affecting Dividend Policy -- Legal Constraints -- Contractual Constraints -- Growth Prospects -- Owner Considerations -- Market Considerations -- Market Considerations -- Review Questions -- 14.5.Types of Dividend Policies -- Constant-Payout-Ratio Dividend Policy -- Regular Dividend Policy -- Low-Regular-and-Extra Dividend Policy -- Review Questions -- 14.6.Other Forms of Dividends -- Stock Dividends -- Stock Splits -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- Integrative Case 6 O'Grady Apparel Company -- pt. 7 Short-Term Financial Decisions -- 15.Working Capital and Current Assets Management -- Cylec Industries---Focusing on Working Capital -- 15.1.Net Working Capital Fundamentals -- Working Capital Management -- Net Working Capital -- Trade-Off between Profitability and Risk -- Review Questions -- 15.2.Cash Conversion Cycle -- Calculating the Cash Conversion Cycle -- Funding Requirements of the Cash Conversion Cycle -- Strategies for Managing the Cash Conversion Cycle -- Review Questions -- 15.3.Inventory Management -- Differing Viewpoints about Inventory Level -- Common Techniques for Managing Inventory -- Focus on Practice: RFID: The Wave of the Future -- International Inventory Management -- Review Questions -- 15.4.Accounts Receivable Management -- Credit Selection and Standards -- Credit Terms -- Credit Monitoring -- Review Questions -- 15.5.Management of Receipts and Disbursements -- Float -- Speeding Up Collections -- Slowing Down Payments -- Focus on Ethics: Stretching Accounts Payable---Is It a Good Policy? -- Cash Concentration -- Zero-Balance Accounts -- Investing in Marketable Securities -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 16.Current Liabilities Management -- Memorial Sloan-Keltering Cancer Center---Reducing Accounts Payable Expenses -- 16.1.Spontaneous Liabilities -- Accounts Payable Management -- Accruals -- Focus on Ethics: Accruals Management -- Review Questions -- 16.2.Unsecured Sources of Short-Term Loans -- Bank Loans -- Commercial Paper -- Focus on Practice: The Ebb and Flow of Commercial Paper -- International Loans -- Review Questions -- 16.3.Secured Sources of Short-Term Loans -- Characteristics of Secured Short-Term Loans -- Use of Accounts Receivable as Collateral -- Use of Inventory as Collateral -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- Integrative Case 7 Casa de Diseno -- pt. 8 Special Topics in Managerial Finance -- 17.Hybrid and Derivative Securities -- Boeing---"We'll Buy It, You Fly It" -- 17.1.Overview of Hybrids and Derivatives -- Review Questions -- 17.2.Leasing -- Types of Leases -- Leasing Arrangements -- Focus on Practice: Leases to Airlines End on a Sour Note -- Lease-versus-Purchase Decision -- Effects of Leasing on Future Financing -- Advantages and Disadvantages of Leasing -- Review Questions -- 17.3.Convertible Securities -- Types of Convertible Securities -- General Features of Convertibles -- Financing with Convertibles -- Determining the Value of a Convertible Bond -- Review Questions -- 17.4.Stock Purchase Warrants -- Key Characteristics -- Implied Price of an Attached Warrant -- Values of Warrants -- Review Questions -- 17.5.Options -- Calls and Puts -- Options Markets -- Options Trading -- Role of Call and Put Options in Fund Raising -- Focus on Ethics: Options Backdating -- Hedging Foreign-Currency Exposures with Options -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 18.Mergers, LBOs, Divestitures, and Business Failure -- IMS Health, Inc---Creating Value by Going Private -- 18.1.Merger Fundamentals -- Terminology -- Motives for Merging -- Types of Mergers -- Review Questions -- 18.2.LBOs and Divestitures -- Leveraged Buyouts (LBOs) -- Divestitures -- Review Questions -- 18.3.Analyzing and Negotiating Mergers -- Valuing the Target Company -- Stock Swap Transactions -- Merger Negotiation Process -- Holding Companies -- International Mergers -- Review Questions -- Global Focus: International Mergers -- 18.4.Business Failure Fundamentals -- Types of Business Failure -- Major Causes of Business Failure -- Focus on Ethics: Too Big to Fail? -- Voluntary Settlements -- Review Questions -- 18.5.Reorganization and Liquidation in Bankruptcy -- Bankruptcy Legislation -- Reorganization in Bankruptcy (Chapter 11) -- Liquidation in Bankruptcy (Chapter 7) -- Review Questions -- Summary -- Contents note continued: Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- 19.International Managerial Finance -- General Electric---Establishing a Presence in China -- 19.1.The Multinational Company and Its Environment -- Key Trading Blocs -- GATT and the WTO -- Legal Forms of Business Organization -- Taxes -- Financial Markets -- Review Questions -- 19.2.Financial Statements -- Subsidiary Characterization and Functional Currency -- Translation of Individual Accounts -- Review Questions -- 19.3.Risk -- Exchange Rate Risks -- Political Risks -- Review Questions -- Focus on Ethics: Chiquita's Slippery Situation -- 19.4.Long-Term Investment and Financing Decisions -- Foreign Direct Investment -- Investment Cash Flows and Decisions -- Capital Structure -- Global Focus: Take on Overseas Assignment to Take a Step Up the Corporate Ladder -- Long-Term Debt -- Equity Capital -- Review Questions -- 19.5.Short-Term Financial Decisions -- Cash Management -- Credit and Inventory Management -- Review Questions -- 19.6.Mergers and Joint Ventures -- Review Questions -- Summary -- Opener-in-Review -- Self-Test Problems -- Warm-Up Exercises -- Problems -- Spreadsheet Exercise -- Integrative Case 8 Organic Solutions. Corporations Finance. 358 Business enterprises Finance. Financial management. 905 Managerial finance. 940 Financial decision making. 1070 Capital budgeting. 907 Working capital management. 1071 Risk management. 355 Zutter, Chad J., author. 1072 ddc BK 0 GIFT Others 2026-08-25 246 246