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Fundamentals of financial management /
With the growing complexities involved in corporate financial decisions, financial management has undergone a sea change in recent years. <i>Fundamentals of Financial Management</i> focuses on keeping readers abreast of these changes and acquainting them with the theoretical concepts and...
| Clasificación: | Libro Electrónico |
|---|---|
| Autor principal: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Delhi :
Pearson,
2011.
|
| Edición: | 3rd ed. |
| Temas: | |
| Acceso en línea: | Texto completo (Requiere registro previo con correo institucional) Texto completo (Requiere registro previo con correo institucional) |
Tabla de Contenidos:
- Cover
- Preface to the Third Edition
- Preface
- Contents
- About the Author
- Part I: Fundamental Concepts of Financial Management
- Chapter 1: Nature and Goal of Financial Decisions
- 1.1 Nature of Financial Decisions
- 1.1.1 Long-term Investment Decision
- 1.1.2 Working Capital Decision
- 1.1.3 Financing Decision
- 1.1.4 Dividend Decision
- 1.2 Factors Influencing Financial Decisions
- 1.2.1 Microeconomic Factors
- 1.2.2 Macroeconomic Factors
- 1.3 Objective of Corporate Financial Decisions
- 1.3.1 Profit Maximisation
- 1.3.2 Objective of Wealth Maximisation
- 1.3.3 Appraisal of the Objective of Maximisation of Corporate Wealth
- 1.3.4 The Agency Problem
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Study Topic: Managing Agency Problem
- References
- Select Further Readings
- Chapter 2: Time Value of Money
- 2.1 The Concept
- 2.2 Computation of Future Value
- 2.2.1 Future Value of a Single Amount
- 2.2.2 Future Value of a Series of Payments
- 2.2.3 Future Value in Case of Annuities
- 2.2.4 Frequency of Compounding
- 2.3 Computation of Present Value of Cash Flows
- 2.3.1 Present Value of a Single Amount
- 2.3.2 Present Value of a Series of Future Values
- 2.3.3 Present Value in Case of Annuity
- 2.3.4 Special Cases of Annuity
- 2.3.5 Present Value of a Cash Flow with Growth Element
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- Select Further Readings
- Chapter 3: Concept of Risk and Return
- 3.1 Basic Concepts of Returns
- 3.1.2 Average Return: Simple and Weighted Average
- 3.1.3 Arithmetic and Geometric Mean
- 3.1.4 The Concept of Probability
- 3.1.5 Expected Return from a Single Investment
- 3.1.6 Expected Returns from International Investment.
- 3.1.7 Portfolio Return
- 3.2 Concept and Measurement of Risk
- 3.2.1 Sources of Risk
- 3.2.2 Risk in Case of a Single Investment
- 3.3 Portfolio Risk
- 3.4 The Capital-Asset-Pricing Model (CAPM)
- 3.4.1 Systematic Risk versus Unsystematic Risk
- 3.4.2 Measurement of Systematic Risk and Determinants of Beta
- 3.4.3 Beta and the Required Rate of Investment
- 3.4.4 Security Market Line
- 3.4.5 Appraisal of CAPM
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- References
- Select Further Readings
- Chapter 4: Valuation of the Firm
- 4.1 Various Concepts of Value
- 4.1.1 Intrinsic Value
- 4.1.2 Market Value
- 4.1.3 Book Value
- 4.1.4 Liquidation Value
- 4.1.5 Going-concern Value
- 4.1.6 Replacement Value
- 4.2 Valuation of Bonds or Debentures
- 4.2.1 Valuation of Bonds with Fixed Maturity
- 4.2.2 Perpetual Bonds
- 4.3 Factors Influencing Bond Valuation
- 4.3.1 Discount Rate versus Coupon Rate
- 4.3.2 Maturity and Value of Bonds
- 4.3.3 Yield to Maturity
- 4.3.4 Duration and the Bond Price
- 4.3.5 Riskiness and the Value of Bond
- 4.4 Valuation of Preference Shares
- 4.5 Valuation of Ordinary Shares
- 4.5.1 Single-period Analysis
- 4.5.2 Multi-period Analysis
- 4.5.3 P/E Ratio Approach to Equity Valuation
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- Reference
- Select Further Reading
- Appendix A
- Appendix B
- Part II: Long-term Investment Decision
- Chapter 5: Principles of Capital Budgeting
- 5.1 Nature of Capital Budgeting
- 5.1.1 Meaning and Significance
- 5.1.2 Types of Proposals
- 5.1.3 Steps in Capital Budgeting Process
- 5.2 The Concept of Cash Flows
- 5.2.1 Nature and Timing of Cash Flows.
- 5.2.2 Factors Considered for Cash Flow Computation
- 5.2.3 Process of Computation
- 5.3 Project Evaluation Criteria
- 5.3.1 NPV Rule
- 5.3.2 Profitability Index
- 5.3.3 Profitability Ratio Versus NPV
- 5.3.4 IRR Rule
- 5.3.5 NPV versus IRR
- 5.3.6 Modified IRR (MIRR)
- 5.3.7 Pay-back Period
- 5.3.8 Accounting Rate of Return
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- Reference
- Select Further Readings
- Chapter 6: Capital Budgeting in Practice
- 6.1 Capital Rationing
- 6.1.1 Conditions of Capital Rationing
- 6.1.2 Capital Rationing and the Choice for a Proposal
- 6.2 Capital Budgeting Under Inflationary Conditions
- 6.3 Decision Concerning Mutually Exclusive Proposalswith Unequal Lives
- 6.3.1 Annualised NPV Method
- 6.3.2 Replacement Chain Method
- 6.4 The Conditions of Risk
- 6.4.1 Inclusion of Risk Factor in Cash Flow
- 6.4.2 Risk Analysis Based on Portfolio Approach
- 6.4.3 Sensitivity Analysis
- 6.4.4 Scenario Analysis
- 6.4.5 Monte Carlo Simulation
- 6.5 Managerial Options and the Cash Flow
- 6.5.1 The Decision-tree Approach
- 6.6 International Capital Budgeting
- 6.6.1 Parent's Perspective and the Cash flow
- 6.6.2 Parent-Subsidiary Perspective
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- References
- Select Further Readings
- Chapter 7: Cost of Capital
- 7.1 Significance of Cost of Capital
- 7.2 Computation of the Cost of Capital
- 7.2.1 Cost of Debt
- 7.2.2 Cost of Preference Share Capital
- 7.2.3 Cost of Equity Shares
- 7.2.4 Cost of Retained Earnings
- 7.3 Weighted Average Cost of Capital
- 7.3.1 The Measurement
- 7.3.2 The Influencing Factors
- 7.4 Marginal Cost of Capital
- Summary
- Points to Remember.
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- Reference
- Select Further Readings
- Part III: Working Capital Management
- Chapter 8: Working Capital Policy
- 8.1 Concept of Working Capital
- 8.1.1 Gross and Net Working Capital
- 8.1.2 Permanent and Variable Working Capital
- 8.2 Size of Current Assets
- 8.2.1 Assessment of the Size: The Concept of Operating Cycle
- 8.2.2 Ratio between Current Assets and Fixed Assets: Liquidity versus Profitability
- 8.2.3 Other Factors Influencing the Size of Current Assets
- 8.3 Financing of Current Assets
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- Reference
- Select Further Readings
- Chapter 9: Management of Cashand Near-Cash Assets
- 9.1 Cash Planning
- 9.1.1 Motives behind Holding Cash
- 9.1.2 Ascertaining Cash Requirements
- 9.2 Managing Cash Inflows and Outflows
- 9.2.1 The Concept of Float
- 9.2.2 Instruments of Cash Collection
- 9.2.3 Ways to Accelerate Cash Collections
- 9.2.4 Controlling Disbursements
- 9.3 Investment of Surplus Cash in Near-Cash Assets
- 9.3.1 Determination of Ratio between Cash and Near-Cash Assets
- 9.3.2 Optimal Cash Balance under Conditions of Certainty: Baumol Model
- 9.3.3 Optimal Cash Balance under Uncertainty: The Miller-Orr Model
- 9.3.4 Selection of Near-Cash Assets
- 9.4 Cash Management in International Firms
- 9.4.1 Intra-firm Transfer of Funds in Presence of Exchange Control
- 9.4.2 Investment of Surplus Cash
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- References
- Select Further Readings
- Chapter 10: Management of Accounts Receivable
- 10.1 Benefits and Costs of Accounts Receivable.
- 10.1.1 Benefits
- 10.1.2 Costs
- 10.2 Credit Policy
- 10.2.1 Optimising the Term of Credit
- 10.2.2 Changes in Credit Standard
- 10.2.3 Discount Policy
- 10.3 Selection of Customers
- 10.3.1 Collecting Necessary Information
- 10.3.2 Analysis of the Information
- 10.3.3 Fixation of the Credit Limit
- 10.4 Monitoring and Control of Credit
- 10.4.1 Monitoring at the Customer's Level
- 10.4.2 Monitoring at the Aggregate Level
- 10.4.3 Factoring
- 10.4.4 Forfaiting
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- References
- Select Further Readings
- Chapter 11: Inventory Management
- 11.1 Benefits and Cost of Maintaining Inventory
- 11.1.1 Benefits
- 11.1.2 Costs
- 11.2 Goal of Inventory Management
- 11.2.1 Classification of Inventories
- 11.2.2 Economic Order Quantity (EOQ)
- 11.2.3 Determination of Re-order Point
- 11.2.4 Safety Level of Stock
- 11.3 Just-in-time Inventory System
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- Reference
- Select Further Readings
- Chapter 12: Sources of Short-term Finance
- 12.1 Trade Credit
- 12.1.1 Nature of Trade Credit
- 12.1.2 Benefits and Costs of Trade Credit
- 12.1.3 Stretching of Accounts Payable
- 12.2 Bank Finance
- 12.2.1 Nature of Bank Finance
- 12.2.2 Effective Interest Rate
- 12.2.3 Bank Financing Norms in India
- 12.3 Other Sources of Short-term Funds
- 12.3.1 Commercial Papers
- 12.3.2 Public Deposits
- 12.3.3 Intercorporate Deposits
- Summary
- Points to Remember
- Descriptive Questions
- Objective-type Questions
- Numerical Problems
- Solved Numerical Problems
- Select Further Readings
- Part IV: Long-term Financing and Dividend Decisions
- Chapter 13: Capitalisation.