Intermediate Financial Management 13th Edition By Eugene Brigham, Phillip Daves | eBook

eBook for Intermediate Financial Management, 13th Edition By Eugene Brigham, Phillip Daves Get all 27 chapters eBook PDF. Table of Contents Part 1: Fundamental Concepts of Corporate Finance Chapter 1: An Overview of Financial Management and the Financial Environment 1-1 Introduction 1-2 How to Use This Text 1-3 The Corporate Life Cycle 1-4 Governing a Corporation 1-5 An Overview of Financial Markets 1-6 Claims on Future Cash Flows: Types of Financial Securities 1-7 Claims on Future Cash Flows: The Required Rate of Return (the Cost of Money) 1-8 Financial Markets 1-9 Overview of the U.S. Stock Markets 1-10 Trading in the Modern Stock Markets 1-11 Finance and the Great Recession of 2007 1-12 The Big Picture e-Resources Summary Questions Chapter 2: Risk and Return: Part I 2-1 Investment Returns and Risk 2-2 Measuring Risk for Discrete Distributions 2-3 Risk in a Continuous Distribution 2-4 Using Historical Data to Estimate Risk 2-5 Risk in a Portfolio Context 2-6 The Relevant Risk of a Stock: The Capital Asset Pricing Model (CAPM) 2-7 The Relationship between Risk and Return in the Capital Asset Pricing Model 2-8 The Efficient Markets Hypothesis 2-9 The Fama-French Three-Factor Model 2-10 Behavioral Finance 2-11 The CAPM and Market Efficiency: Implications for Corporate Managers and Investors Summary Questions Problems Spreadsheet Problem Chapter 3: Risk and Return: Part II 3-1 Efficient Portfolios 3-2 Choosing the Optimal Portfolio 3-3 The Basic Assumptions of the Capital Asset Pricing Model 3-4 The Capital Market Line and the Security Market Line 3-5 Calculating Beta Coefficients 3-6 Empirical Tests of the CAPM 3-7 Arbitrage Pricing Theory Summary Questions Problems Spreadsheet Problem Chapter 4: Bond Valuation 4-1 Who Issues Bonds? 4-2 Key Characteristics of Bonds 4-3 Bond Valuation 4-4 Changes in Bond Values over Time 4-5 Bonds with Semiannual Coupons 4-6 Bond Yields 4-7 The Pre-Tax Cost of Debt: Determinants of Market Interest Rates 4-8 The Risk-Free Interest Rate: Nominal (rRF) and Real (r*) 4-9 The Inflation Premium (IP) 4-10 The Maturity Risk Premium (MRP) 4-11 The Default Risk Premium (DRP) 4-12 The Liquidity Premium (LP) 4-13 The Term Structure of Interest Rates 4-14 Financing with Junk Bonds 4-15 Bankruptcy and Reorganization Summary Questions Problems Spreadsheet Problems Chapter 5: Financial Options 5-1 Overview of Financial Options 5-2 The Single-Period Binomial Option Pricing Approach 5-3 The Single-Period Binomial Option Pricing Formula 5-4 The Multi-Period Binomial Option Pricing Model 5-5 The Black-Scholes Option Pricing Model (OPM) 5-6 The Valuation of Put Options 5-7 Applications of Option Pricing in Corporate Finance Summary Questions Problems Spreadsheet Problem Chapter 6: Accounting for Financial Management 6-1 Financial Statements and Reports 6-2 The Balance Sheet 6-3 The Income Statement 6-4 Statement of Stockholders' Equity 6-5 Statement of Cash Flows 6-6 Net Cash Flow 6-7 Free Cash Flow: The Cash Flow Available for Distribution to Investors 6-8 Performance Evaluation 6-9 The Federal Income Tax System Summary Questions Problems Spreadsheet Problems Chapter 7: Analysis of Financial Statements 7-1 Financial Analysis 7-2 Liquidity Ratios 7-3 Asset Management Ratios 7-4 Debt Management Ratios 7-5 Profitability Ratios 7-6 Market Value Ratios 7-7 Trend Analysis, Common Size Analysis, and Percentage Change Analysis 7-8 Tying the Ratios Together: The DuPont Equation 7-9 Comparative Ratios and Benchmarking 7-10 Uses and Limitations of Ratio Analysis 7-11 Looking beyond the Numbers Summary Questions Problems Spreadsheet Problem Part 2: Corporate Valuation Chapter 8: Basic Stock Valuation 8-1 Legal Rights and Privileges of Common Stockholders 8-2 Types of Common Stock 8-3 Stock Market Reporting 8-4 Valuing Common Stocks-Introducing the Free Cash Flow (FCF) Valuation Model 8-5 The Constant Growth Model: Valuation When Expected Free Cash Flow Grows at a Constant Rate 8-6 The Multistage Model: Valuation When Expected Short-Term Free Cash Flow Grows at a Nonconstant R 8-7 Application of the FCF Valuation Model to MicroDrive 8-8 Do Stock Values Reflect Long-Term or Short-Term Cash Flows? 8-9 Value-Based Management: Using the Free Cash Flow Valuation Model to Identify Value Drivers 8-10 Why Are Stock Prices So Volatile? 8-11 Valuing Common Stocks with the Dividend Growth Model 8-12 The Market Multiple Method 8-13 Comparing the FCF Valuation Model, the Dividend Growth Model, and the Market Multiple Method 8-14 Preferred Stock Summary Questions Problems Spreadsheet Problems Chapter 9: Corporate Valuation and Financial Planning 9-1 Overview of Financial Planning 9-2 Financial Planning at MicroDrive Inc. 9-3 Forecasting Operations 9-4 Evaluating MicroDrive's Strategic Initiatives 9-5 Projecting MicroDrive's Financial Statements 9-6 Analysis and Selection of a Strategic Plan 9-8 Additional Funds Needed (AFN) Equation Method 9-9 Forecasting When the Ratios Change Summary Questions Problems Spreadsheet Problems Chapter 10: Corporate Governance 10-1 Agency Conflicts 10-2 Corporate Governance 10-3 Employee Stock Ownership Plans (ESOPs) Summary Questions Chapter 11: Determining the Cost of Capital 11-1 The Weighted Average Cost of Capital 11-2 Choosing Weights for the Weighted Average Cost of Capital 11-3 After-Tax Cost of Debt: rd(1 - T) and rstd(1 - T) 11-4 Cost of Preferred Stock, rps 11-5 Cost of Common Stock: The Market Risk Premium, RPM 11-6 Using the CAPM to Estimate the Cost of Common Stock, rs 11-7 Using the Dividend Growth Approach to Estimate the Cost of Common Stock 11-8 The Weighted Average Cost of Capital (WACC) 11-9 Adjusting the Cost of Equity for Flotation Costs 11-10 Privately Owned Firms and Small Businesses 11-11 The Divisional Cost of Capital 11-12 Estimating the Cost of Capital for Individual Projects 11-13 Managerial Issues and the Cost of Capital Summary Questions Problems Spreadsheet Problem Part 3: Project Valuation Chapter 12: Capital Budgeting: Decision Criteria 12-1 An Overview of Capital Budgeting 12-2 The First Step in Project Analysis 12-3 Net Present Value (NPV) 12-4 Internal Rate of Return (IRR) 12-5 Modified Internal Rate of Return (MIRR) 12-6 Profitability Index (PI) 12-7 Payback Period 12-8 How to Use the Different Capital Budgeting Methods 12-9 Other Issues in Capital Budgeting Summary Questions Problems Spreadsheet Problem Chapter 13: Capital Budgeting: Estimating Cash Flows and Analyzing Risk 13-1 Identifying Relevant Cash Flows 13-2 Analysis of an Expansion Project 13-3 Risk Analysis in Capital Budgeting 13-4 Measuring Stand-Alone Risk 13-5 Sensitivity Analysis 13-6 Scenario Analysis 13-7 Monte Carlo Simulation 13-8 Project Risk Conclusions 13-9 Replacement Analysis 13-10 Real Options 13-11 Phased Decisions and Decision Trees Summary Questions Problems Spreadsheet Problem Appendix 13A: Tax Depreciation Chapter 14: Real Options 14-1 Valuing Real Options 14-2 The Investment Timing Option: An Illustration 14-3 The Growth Option: An Illustration 14-4 Concluding Thoughts on Real Options Summary Questions Problems Spreadsheet Problem Part 4: Strategic Financing Decisions Chapter 15: Distributions to Shareholders: Dividends and Repurchases 15-1 An Overview of Cash Distributions 15-2 Procedures for Cash Distributions 15-3 Cash Distributions and Firm Value 15-4 Clientele Effect 15-5 Signaling Hypothesis 15-6 Implications for Dividend Stability 15-7 Setting the Target Distribution Level: The Residual Distribution Model 15-8 The Residual Distribution Model in Practice 15-9 A Tale of Two Cash Distributions: Dividends versus Stock Repurchases 15-10 The Pros and Cons of Dividends and Repurchases 15-11 Other Factors Influencing Distributions 15-12 Summarizing the Distribution Policy Decision 15-13 Stock Splits and Stock Dividends 15-14 Dividend Reinvestment Plans Summary Questions Problems Spreadsheet Problem Chapter 16: Capital Structure Decisions 16-1 An Overview of Capital Structure 16-2 Business Risk and Financial Risk 16-3 Capital Structure Theory: The Modigliani and Miller Models 16-4 Capital Structure Theory: Beyond the Modigliani and Miller Models 16-5 Capital Structure Evidence and Implications 16-6 Estimating the Optimal Capital Structure 16-7 Anatomy of a Recapitalization 16-8 Risky Debt and Equity as an Option 16-9 Managing the Maturity Structure of Debt Summary Questions Problems Spreadsheet Problems Chapter 17: Dynamic Capital Structures and Corporate Valuation 17-1 The Adjusted Present Value (APV) Approach 17-2 The Modigliani and Miller Models 17-3 The Compressed Adjusted Present Value (CAPV) Model 17-4 The Free Cash Flow to Equity (FCFE) Model 17-5 Multistage Valuation When the Capital Structure Is Stable 17-6 Illustration of the Three Valuation Approaches for a Constant Capital Structure 17-7 Analysis of a Dynamic Capital Structure Summary Questions Problems Spreadsheet Problem Part 5: Tactical Financing Decisions Chapter 18: Initial Public Offerings, Investment Banking, and Capital Formation 18-1 The Financial Life Cycle of a Start-Up Company 18-2 The Decision to Go Public 18-3 The Process of Going Public: An Initial Public Offering 18-4 Equity Carve-Outs: A Special Type of IPO 18-5 Other Ways to Raise Funds in the Capital Markets 18-6 Investment Banking Activities 18-7 The Decision to Go Private Summary Questions Problems Spreadsheet Problem Chapter 19: Lease Financing 19-1 Types of Leases 19-2 Tax Effects 19-3 Financial Statement Effects 19-4 Evaluation by the Lessee 19-5 Evaluation by the Lessor 19-6 Other Issues in Lease Analysis 19-7 Other Reasons for Leasing Summary Questions Problems Spreadsheet Problem Chapter 20: Hybrid Financing: Preferred Stock, Warrants, and Convertibles 20-1 Preferred Stock 20-2 Warrants 20-3 Convertible Securities 20-4 A Final Comparison of Warrants and Convertibles 20-5 Reporting Earnings When Warrants or Convertibles Are Outstanding Summary Questions Problems Spreadsheet Problem Part 6: Working Capital Management Chapter 21: Supply Chains and Working Capital Management 21-1 Overview of Supply Chain Management 21-2 Using and Financing Operating Current Assets 21-3 The Cash Conversion Cycle 21-4 Inventory Management 21-5 Receivables Management 21-6 Accruals and Accounts Payable (Trade Credit) 21-7 The Cash Budget 21-8 Cash Management and the Target Cash Balance 21-9 Cash Management Techniques 21-10 Managing Short-Term Investments 21-11 Short-Term Bank Loans 21-12 Commercial Paper 21-13 Use of Security in Short-Term Financing Summary Problems Spreadsheet Problem Chapter 22: Providing and Obtaining Credit 22-1 Credit Policy 22-2 Monitoring Receivables with the Uncollected Balances Schedule 22-3 Analyzing Proposed Changes in Credit Policy 22-4 Analyzing Proposed Changes in Credit Policy: Incremental Analysis 22-5 The Cost of Bank Loans 22-6 Choosing a Bank Summary Questions Problems Spreadsheet Problem Chapter 23: Other Topics in Working Capital Management 23-1 The Concept of Zero Working Capital 23-2 Setting the Target Cash Balance 23-3 Inventory Control Systems 23-4 Accounting for Inventory 23-5 The Economic Ordering Quantity (EOQ) Model 23-6 EOQ Model Extensions Summary Questions Problems Spreadsheet Problem Part 7: Special Topics Chapter 24: Enterprise Risk Management 24-1 Reasons to Manage Risk 24-2 An Overview of Enterprise Risk Management 24-3 A Framework for Enterprise Risk Management 24-4 Categories of Risk Events 24-5 Foreign Exchange (FX) Risk 24-6 Commodity Price Risk 24-7 Interest Rate Risk 24-8 Project Selection Risks 24-9 Managing Credit Risks 24-10 Risk and Human Safety Summary Questions Problems Spreadsheet Problem Chapter 25: Bankruptcy, Reorganization, and Liquidation 25-1 Financial Distress and Its Consequences 25-2 Issues Facing a Firm in Financial Distress 25-3 Settlements without Going through Formal Bankruptcy 25-4 Federal Bankruptcy Law 25-5 Reorganization in Bankruptcy (Chapter 11 of Bankruptcy Code) 25-6 Liquidation in Bankruptcy 25-7 Anatomy of a Bankruptcy: Transforming the GM Corporation into the GM Company 25-8 Other Motivations for Bankruptcy 25-9 Some Criticisms of Bankruptcy Laws Summary Questions Problems Spreadsheet Problem Chapter 26: Mergers and Corporate Control 26-1 Rationale for Mergers 26-2 Types of Mergers 26-3 Level of Merger Activity 26-4 Hostile versus Friendly Takeovers 26-5 Merger Regulation 26-6 Overview of Merger Analysis 26-7 Estimating a Target's Value 26-8 Setting the Bid Price 26-9 Who Wins: The Empirical Evidence 26-10 The Role of Investment Bankers 26-11 Other Business Combinations 26-12 Divestitures 26-13 Tax Treatment of Mergers 26-14 Financial Reporting for Mergers Summary Questions Problems Spreadsheet Problem Chapter 27: Multinational Financial Management 27-1 Multinational, or Global, Corporations 27-2 Multinational versus Domestic Financial Management 27-3 Exchange Rates 27-4 The Fixed Exchange Rate System 27-5 Floating Exchange Rates 27-6 Government Intervention in Foreign Exchange Markets 27-7 Other Exchange Rate Systems: No Local Currency, Pegged Rates, and Managed Floating Rates 27-8 Trading in Foreign Exchange: Spot Rates and Forward Rates 27-9 Interest Rate Parity 27-10 Purchasing Power Parity 27-11 Inflation, Interest Rates, and Exchange Rates 27-12 International Money and Capital Markets 27-13 Multinational Capital Budgeting 27-14 International Capital Structures 27-15 Multinational Working Capital Management Summary Questions Problems Spreadsheet Problems Appendix A: Values of the Areas under the Standard Normal Distribution Function Appendix B: Answers to End-of-Chapter Problems Appendix C: Selected Equations Glossary Name Index Subject Index