Financial Management: Theory and Practice (15th Edition)

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Download Financial Management: Theory and Practice (15th Edition) written by Eugene F. Brigham, Michael C. Ehrhardt in PDF format. This book is under the category Finance and bearing the isbn/isbn13 number 130563229X; 1337130354/9781305632295/ 9781337130356. You may reffer the table below for additional details of the book.

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Specifications

book-author

Eugene F. Brigham, Michael C. Ehrhardt

publisher

Cengage Learning; 15th edition

file-type

PDF

pages

1200 pages

language

English

asin

B019EB9PCE

isbn10

130563229X; 1337130354

isbn13

9781305632295/ 9781337130356


Book Description

The only textbook to strike a balance between practical applications and solid financial theory; Brigham/Ehrhardt’s Financial Management: Theory And Practice; 15th edition (PDF) gives you a thorough understanding of the essential concepts you need to develop and implement effective financial strategies. The ebook begins with a presentation of corporate finance fundamentals before progressing to discussions of specific techniques used to maximize the valuation of a firm. It also explores the recent economic and financial crises and the role of finance in the business world. With its engaging and relevant presentation; numerous examples; and emphasis on Excel usage; this textbook serves as a complete reference tool for you in your academic or business career. The 15th edition is also available with learning solutions such as Aplia; MindTap Finance; and CengageNOW to help you to become First in Finance.

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NOTE: This purchase only contains Brigham/Ehrhardt’s Financial Management: Theory & Practice; 15th edition in PDF. No online access codes etc are included.

Additional information

book-author

Eugene F. Brigham, Michael C. Ehrhardt

publisher

Cengage Learning; 15th edition

file-type

PDF

pages

1200 pages

language

English

asin

B019EB9PCE

isbn10

130563229X; 1337130354

isbn13

9781305632295/ 9781337130356

Table of contents


Table of contents :
Brief Contents……Page 10
Contents……Page 14
Preface……Page 24
Part 1: The Company and Its Environment……Page 38
Ch 1: An Overview of Financial Management and the Financial Environment……Page 40
1-2: Finance from 40,000 Feet Above……Page 41
1-3: The Corporate Life Cycle……Page 42
1-4: Governing a Corporation……Page 47
1-5: An Overview of Financial Markets……Page 51
1-6: Claims on Future Cash Flows: Types of Financial Securities……Page 53
1-7: Claims on Future Cash Flows: The Required Rate of Return (The Cost of Money)……Page 57
1-8: The Functions of Financial Institutions……Page 61
1-9: Financial Markets……Page 66
1-10: Overview of the U.S. Stock Markets……Page 70
1-11: Trading in the Modern Stock Markets……Page 71
1-12: Finance and the Great Recession of 2007……Page 79
1-13: The Big Picture……Page 89
Summary……Page 90
Questions……Page 91
Mini Case……Page 92
Ch 2: Financial Statements, Cash Flow, and Taxes……Page 94
2-1: Financial Statements and Reports……Page 95
2-2: The Balance Sheet……Page 96
2-3: The Income Statement……Page 99
2-4: Statement of Stockholders’ Equity……Page 102
2-5: Statement of Cash Flows……Page 103
2-7: Free Cash Flow: The Cash Flow Available for Distribution to Investors……Page 107
2-8: Performance Evaluation……Page 115
2-9: The Federal Income Tax System……Page 121
Summary……Page 126
Self-Test Problem……Page 128
Problems……Page 129
Spreadsheet Problems……Page 132
Mini Case……Page 134
Ch 3: Analysis of Financial Statements……Page 138
3-1: Financial Analysis……Page 139
3-2: Liquidity Ratios……Page 141
3-3: Asset Management Ratios……Page 143
3-4: Debt Management Ratios……Page 146
3-5: Profitability Ratios……Page 151
3-6: Market Value Ratios……Page 153
3-7: Trend Analysis, Common Size Analysis, and Percentage Change Analysis……Page 157
3-8: Tying the Ratios Together: The DuPont Equation……Page 160
3-9: Comparative Ratios and Benchmarking……Page 161
3-10: Uses and Limitations of Ratio Analysis……Page 162
3-11: Looking beyond the Numbers……Page 163
Questions……Page 164
Problems……Page 165
Spreadsheet Problem……Page 169
Mini Case……Page 170
Selected Additional Cases……Page 173
Part 2: Fixed Income Securities……Page 174
Ch 4: Time Value of Money……Page 176
4-1: Time Lines……Page 177
4-2: Future Values……Page 178
4-3: Present Values……Page 186
4-4: Finding the Interest Rate, I……Page 190
4-6: Perpetuities……Page 191
4-7: Annuities……Page 192
4-8: Future Value of an Ordinary Annuity……Page 193
4-9: Future Value of an Annuity Due……Page 196
4-10: Present Value of Ordinary Annuities and Annuities Due……Page 197
4-11: Finding Annuity Payments, Periods, and Interest Rates……Page 199
4-12: Uneven, or Irregular, Cash Flows……Page 202
4-13: Future Value of an Uneven Cash Flow Stream……Page 205
4-14: Solving for I with Irregular Cash Flows……Page 206
4-15: Semiannual and Other Compounding Periods……Page 207
4-16: Fractional Time Periods……Page 211
4-17: Amortized Loans……Page 212
4-18: Growing Annuities……Page 215
Summary……Page 218
Self-Test Problems……Page 220
Problems……Page 221
Mini Case……Page 226
Ch 5: Bonds, Bond Valuation, and Interest Rates……Page 230
5-1: Who Issues Bonds?……Page 231
5-2: Key Characteristics of Bonds……Page 233
5-3: Bond Valuation……Page 237
5-4: Changes in Bond Values over Time……Page 242
5-5: Bonds with Semiannual Coupons……Page 245
5-6: Bond Yields……Page 246
5-7: The Pre-Tax Cost of Debt: Determinants of Market Interest Rates……Page 249
5-8: The Risk-Free Interest Rate: Nominal (rRF) and Real (r*)……Page 250
5-9: The Inflation Premium (IP)……Page 251
5-10: The Maturity Risk Premium (MRP)……Page 253
5-11: The Default Risk Premium (DRP)……Page 256
5-12: The Liquidity Premium (LP)……Page 262
5-13: The Term Structure of Interest Rates……Page 263
5-15: Bankruptcy and Reorganization……Page 265
Summary……Page 266
Questions……Page 268
Problems……Page 269
Spreadsheet Problem……Page 272
Mini Case……Page 273
Selected Additional Cases……Page 274
Part 3: Stocks and Options……Page 276
Ch 6: Risk and Return……Page 278
6-1: Investment Returns and Risk……Page 279
6-2: Measuring Risk for Discrete Distributions……Page 280
6-3: Risk in a Continuous Distribution……Page 284
6-4: Using Historical Data to Estimate Risk……Page 286
6-5: Risk in a Portfolio Context……Page 289
6-6: The Relevant Risk of a Stock: The Capital Asset Pricing Model (CAPM)……Page 293
6-7: The Relationship between Risk and Return in the Capital Asset Pricing Model……Page 300
6-8: The Efficient Markets Hypothesis……Page 309
6-9: The Fama-French Three-Factor Model……Page 313
6-10: Behavioral Finance……Page 317
6-11: The CAPM and Market Efficiency: Implications for Corporate Managers and Investors……Page 319
Summary……Page 320
Questions……Page 321
Self-Test Problems……Page 322
Problems……Page 323
Spreadsheet Problems……Page 325
Mini Case……Page 326
Selected Additional Cases……Page 329
Ch 7: Corporate Valuation and Stock Valuation……Page 330
7-1: Legal Rights and Privileges of Common Stockholders……Page 331
7-2: Types of Common Stock……Page 332
7-3: Stock Market Reporting……Page 333
7-4: Valuing Common Stocks-Introducing the Free Cash Flow (FCF) Valuation Model……Page 334
7-5: The Constant Growth Model: Valuation When Expected Free Cash Flow Grows at a Constant Rate……Page 337
7-6: The Multistage Model: Valuation When Expected Short-Term Free Cash Flow Grows at a Nonconstant Rate……Page 342
7-7: Application of the FCF Valuation Model to MicroDrive……Page 346
7-8: Do Stock Values Reflect Long-Term or Short-Term Cash Flows?……Page 352
7-9: Value-Based Management: Using the Free Cash Flow Valuation Model to Identify Value Drivers……Page 353
7-10: Why are Stock Prices So Volatile?……Page 356
7-11: Valuing Common Stocks with the Dividend Growth Model……Page 357
7-12: The Market Multiple Method……Page 365
7-13: Comparing the FCF Valuation Model, the Dividend Growth Model, and the Market Multiple Method……Page 366
7-14: Preferred Stock……Page 367
Summary……Page 368
Self-Test Problems……Page 370
Problems……Page 371
Spreadsheet Problems……Page 374
Mini Case……Page 376
Selected Additional Cases……Page 378
Ch 8: Financial Options and Applications in Corporate Finance……Page 380
8-1: Overview of Financial Options……Page 381
8-2: The Single-Period Binomial Option Pricing Approach……Page 384
8-3: The Single-Period Binomial Option Pricing Formula……Page 390
8-4: The Multi-Period Binomial Option Pricing Model……Page 392
8-5: The Black-Scholes Option Pricing Model (OPM)……Page 394
8-6: The Valuation of Put Options……Page 400
8-7: Applications of Option Pricing in Corporate Finance……Page 402
Summary……Page 404
Problems……Page 405
Mini Case……Page 406
Part 4: Projects and Their Valuation……Page 410
Ch 9: The Cost of Capital……Page 412
9-1: The Weighted Average Cost of Capital……Page 413
9-2: Choosing Weights for the Weighted Average Cost of Capital……Page 415
9-3: After-Tax Cost of Debt: rd(1-T) and rstd(1-T)……Page 416
9-5: Cost of Common Stock: The Market Risk Premium, RPM……Page 421
9-6: Using the CAPM to Estimate the Cost of Common Stock, rs……Page 425
9-7: Using the Dividend Growth Approach to Estimate the Cost of Common Stock……Page 427
9-8: The Weighted Average Cost of Capital (WACC)……Page 430
9-9: Adjusting the Cost of Equity for Flotation Costs……Page 432
9-10: Privately Owned Firms and Small Businesses……Page 434
9-11: The Divisional Cost of Capital……Page 435
9-12: Estimating the Cost of Capital for Individual Projects……Page 438
9-13: Managerial Issues and the Cost of Capital……Page 439
Summary……Page 441
Self-Test Problem……Page 443
Problems……Page 444
Spreadsheet Problem……Page 447
Mini Case……Page 448
Selected Additional Cases……Page 449
Ch 10: The Basics of Capital Budgeting: Evaluating Cash Flows……Page 450
10-1: An Overview of Capital Budgeting……Page 451
10-2: The First Step in Project Analysis……Page 453
10-3: Net Present Value (NPV)……Page 454
10-4: Internal Rate of Return (IRR)……Page 456
10-5: Modified Internal Rate of Return (MIRR)……Page 463
10-6: Profitability Index (PI)……Page 466
10-7: Payback Period……Page 467
10-8: How to Use the Different Capital Budgeting Methods……Page 469
10-9: Other Issues in Capital Budgeting……Page 472
Summary……Page 478
Questions……Page 479
Problems……Page 480
Spreadsheet Problem……Page 485
Mini Case……Page 486
Selected Additional Cases……Page 488
Ch 11: Cash Flow Estimation and Risk Analysis……Page 490
11-1: Identifying Relevant Cash Flows……Page 491
11-2: Analysis of an Expansion Project……Page 496
11-4: Measuring Stand-Alone Risk……Page 504
11-5: Sensitivity Analysis……Page 505
11-6: Scenario Analysis……Page 508
11-7: Monte Carlo Simulation……Page 511
11-8: Project Risk Conclusions……Page 514
11-9: Replacement Analysis……Page 515
11-10: Real Options……Page 517
11-11: Phased Decisions and Decision Trees……Page 519
Summary……Page 522
Self-Test Problems……Page 524
Problems……Page 525
Spreadsheet Problem……Page 531
Mini Case……Page 532
Selected Additional Cases……Page 534
Appendix 11A: Tax Depreciation……Page 535
Part 5: Corporate Valuation and Governance……Page 538
Ch 12: Corporate Valuation and Financial Planning……Page 540
12-1: Overview of Financial Planning……Page 541
12-2: Financial Planning at MicroDrive, Inc…….Page 543
12-3: Forecasting Operations……Page 545
12-4: Evaluating MicroDrive’s Strategic Initiatives……Page 549
12-5: Projecting MicroDrive’s Financial Statements……Page 552
12-6: Analysis and Selection of a Strategic Plan……Page 556
12-7: The CFO’s Model……Page 558
12-8: Additional Funds Needed (AFN) Equation Method……Page 560
12-9: Forecasting When the Ratios Change……Page 563
Questions……Page 567
Self-Test Problems……Page 568
Problems……Page 570
Spreadsheet Problems……Page 573
Mini Case……Page 575
Selected Additional Cases……Page 577
Ch 13: Corporate Governance……Page 578
13-1: Agency Conflicts……Page 579
13-2: Corporate Governance……Page 582
13-3: Employee Stock Ownership Plans (ESOPs)……Page 594
Summary……Page 597
Mini Case……Page 598
Part 6: Cash Distributions and Capital Structure……Page 600
Ch 14: Distributions to Shareholders: Dividends and Repurchases……Page 602
14-1: An Overview of Cash Distributions……Page 603
14-2: Procedures for Cash Distributions……Page 605
14-3: Cash Distributions and Firm Value……Page 608
14-4: Clientele Effect……Page 612
14-5: Signaling Hypothesis……Page 613
14-6: Implications for Dividend Stability……Page 614
14-7: Setting the Target Distribution Level: The Residual Distribution Model……Page 615
14-8: The Residual Distribution Model in Practice……Page 617
14-9: A Tale of Two Cash Distributions: Dividends versus Stock Repurchases……Page 618
14-10: The Pros and Cons of Dividends and Repurchases……Page 627
14-11: Other Factors Influencing Distributions……Page 629
14-12: Summarizing the Distribution Policy Decision……Page 631
14-13: Stock Splits and Stock Dividends……Page 632
14-14: Dividend Reinvestment Plans……Page 635
Summary……Page 636
Questions……Page 637
Problems……Page 638
Mini Case……Page 641
Selected Additional Cases……Page 643
Ch 15: Capital Structure Decisions……Page 644
15-1: An Overview of Capital Structure……Page 645
15-2: Business Risk and Financial Risk……Page 647
15-3: Capital Structure Theory: The Modigliani and Miller Models……Page 651
15-4: Capital Structure Theory: Beyond the Modigliani and Miller Models……Page 655
15-5: Capital Structure Evidence and Implications……Page 660
15-6: Estimating the Optimal Capital Structure……Page 665
15-7: Anatomy of a Recapitalization……Page 671
15-8: Risky Debt and Equity as an Option……Page 676
15-9: Managing the Maturity Structure of Debt……Page 679
Summary……Page 682
Questions……Page 683
Problems……Page 684
Spreadsheet Problems……Page 687
Mini Case……Page 688
Selected Additional Cases……Page 689
Part 7: Managing Global Operations……Page 690
Ch 16: Supply Chains and Working Capital Management……Page 692
16-1: Overview of Supply Chain Management……Page 693
16-2: Using and Financing Operating Current Assets……Page 695
16-3: The Cash Conversion Cycle……Page 699
16-4: Inventory Management……Page 705
16-5: Receivables Management……Page 706
16-6: Accruals and Accounts Payable (Trade Credit)……Page 710
16-7: The Cash Budget……Page 714
16-8: Cash Management and the Target Cash Balance……Page 718
16-9: Cash Management Techniques……Page 719
16-10: Managing Short-Term Investments……Page 722
16-11: Short-Term Financing……Page 724
16-12: Short-Term Bank Loans……Page 725
16-14: Use of Security in Short-Term Financing……Page 729
Summary……Page 730
Questions……Page 732
Self-Test Problems……Page 733
Problems……Page 734
Spreadsheet Problem……Page 737
Mini Case……Page 739
Selected Additional Cases……Page 741
Ch 17: Multinational Financial Management……Page 742
17-1: Multinational, or Global, Corporations……Page 743
17-2: Multinational versus Domestic Financial Management……Page 744
17-3: Exchange Rates……Page 746
17-4: Exchange Rates and International Trade……Page 751
17-5: The International Monetary System and Exchange Rate Policies……Page 752
17-6: Trading in Foreign Exchange……Page 757
17-7: Interest Rate Parity……Page 759
17-8: Purchasing Power Parity……Page 761
17-10: International Money and Capital Markets……Page 763
17-11: Multinational Capital Budgeting……Page 769
17-12: International Capital Structures……Page 774
17-13: Multinational Working Capital Management……Page 775
Summary……Page 778
Questions……Page 780
Problems……Page 781
Mini Case……Page 783
Selected Additional Case……Page 785
Part 8: Tactical Financing Decisions……Page 786
Ch 18: Public and Private Financing: Initial Offerings, Seasoned Offerings, and Investment Banks……Page 788
18-1: The Financial Life Cycle of a Start-Up Company……Page 789
18-2: The Decision to Go Public……Page 790
18-3: The Process of Going Public: An Initial Public Offering……Page 792
18-4: Equity Carve-Outs: A Special Type of IPO……Page 802
18-5: Other Ways to Raise Funds in the Capital Markets……Page 803
18-6: Investment Banking Activities……Page 808
18-7: The Decision to Go Private……Page 810
18-8: Refunding Operations……Page 812
18-9: Managing the Risk Structure of Debt with Project Financing……Page 818
Summary……Page 819
Self-Test Problems……Page 821
Problems……Page 822
Spreadsheet Problems……Page 824
Mini Case……Page 825
Selected Additional Cases……Page 826
Ch 19: Lease Financing……Page 828
19-1: Types of Leases……Page 829
19-2: Tax Effects……Page 832
19-3: Financial Statement Effects……Page 833
19-4: Evaluation by the Lessee……Page 836
19-5: Evaluation by the Lessor……Page 841
19-6: Other Issues in Lease Analysis……Page 843
19-7: Other Reasons for Leasing……Page 847
Summary……Page 848
Questions……Page 849
Self-Test Problem……Page 850
Problems……Page 851
Spreadsheet Problem……Page 852
Mini Case……Page 853
Selected Additional Cases……Page 854
Ch 20: Hybrid Financing: Preferred Stock, Warrants, and Convertibles……Page 856
20-1: Preferred Stock……Page 857
20-2: Warrants……Page 861
20-3: Convertible Securities……Page 867
20-4: A Final Comparison of Warrants and Convertibles……Page 874
20-5: Reporting Earnings When Warrants or Convertibles are Outstanding……Page 875
Summary……Page 876
Questions……Page 877
Problems……Page 878
Mini Case……Page 881
Selected Additional Cases……Page 883
Part 9: Strategic Finance in a Dynamic Environment……Page 884
Ch 21: Dynamic Capital Structures and Corporate Valuation……Page 886
21-1: The Adjusted Present Value (APV) Approach……Page 887
21-2: The Modigliani and Miller Models……Page 890
21-3: The Compressed Adjusted Present Value (CAPV) Model……Page 892
21-4: Multistage Valuation When the Capital Structure is Stable……Page 893
21-5: Illustration of the Three Valuation Approaches for a Constant Capital Structure……Page 897
21-6: Analysis of a Dynamic Capital Structure……Page 903
Summary……Page 904
Self-Test Problem……Page 905
Problems……Page 906
Spreadsheet Problem……Page 907
Selected Additional Cases……Page 908
Ch 22: Mergers and Corporate Control……Page 910
22-1: Rationale for Mergers……Page 911
22-3: Level of Merger Activity……Page 914
22-4: Hostile versus Friendly Takeovers……Page 915
22-5: Merger Regulation……Page 916
22-6: Overview of Merger Analysis……Page 918
22-7: Estimating a Target’s Value……Page 919
22-8: Setting the Bid Price……Page 923
22-9: Analysis When the Capital Structure Changes during the Explicit Forecast Period……Page 925
22-10: Taxes and the Structure of the Takeover Bid……Page 926
22-11: Financial Reporting for Mergers……Page 929
22-12: Analysis for a “True Consolidation”……Page 932
22-13: The Role of Investment Bankers……Page 933
22-14: Who Wins: The Empirical Evidence……Page 935
22-15: Corporate Alliances……Page 936
22-16: Divestitures……Page 937
22-17: Holding Companies……Page 938
Summary……Page 939
Questions……Page 940
Problems……Page 941
Mini Case……Page 944
Selected Additional Cases……Page 946
Ch 23: Enterprise Risk Management……Page 948
23-1: Reasons to Manage Risk……Page 949
23-2: An Overview of Enterprise Risk Management……Page 952
23-3: A Framework for Enterprise Risk Management……Page 954
23-4: Categories of Risk Events……Page 957
23-5: Foreign Exchange (FX) Risk……Page 959
23-6: Commodity Price Risk……Page 960
23-7: Interest Rate Risk……Page 964
23-8: Project Selection Risks……Page 972
23-9: Managing Credit Risks……Page 975
23-10: Risk and Human Safety……Page 977
Summary……Page 978
Questions……Page 979
Problems……Page 980
Spreadsheet Problem……Page 981
Mini Case……Page 982
Ch 24: Bankruptcy, Reorganization, and Liquidation……Page 984
24-1: Financial Distress and Its Consequences……Page 985
24-2: Issues Facing a Firm in Financial Distress……Page 986
24-3: Settlements without Going through Formal Bankruptcy……Page 987
24-4: Federal Bankruptcy Law……Page 989
24-5: Reorganization in Bankruptcy (Chapter 11 of Bankruptcy Code)……Page 990
24-6: Liquidation in Bankruptcy……Page 999
24-7: Anatomy of a Bankruptcy: Transforming the GM Corporation into the GM Company……Page 1004
24-8: Other Motivations for Bankruptcy……Page 1005
24-9: Some Criticisms of Bankruptcy Laws……Page 1006
Summary……Page 1007
Self-Test Problem……Page 1008
Problems……Page 1009
Spreadsheet Problem……Page 1012
Mini Case……Page 1013
Selected Additional Cases……Page 1014
Part 10: Special Topics……Page 1016
Ch 25: Portfolio Theory and Asset Pricing Models……Page 1018
25-1: Efficient Portfolios……Page 1019
25-2: Choosing the Optimal Portfolio……Page 1024
25-3: The Basic Assumptions of the Capital Asset Pricing Model……Page 1027
25-4: The Capital Market Line and the Security Market Line……Page 1028
25-5: Calculating Beta Coefficients……Page 1032
25-6: Empirical Tests of the CAPM……Page 1041
25-7: Arbitrage Pricing Theory……Page 1043
Summary……Page 1046
Self-Test Problem……Page 1047
Problems……Page 1048
Spreadsheet Problem……Page 1050
Selected Additional Case……Page 1051
Ch 26: Real Options……Page 1052
26-1: Valuing Real Options……Page 1053
26-2: The Investment Timing Option: An Illustration……Page 1054
26-3: The Growth Option: An Illustration……Page 1064
26-4: Concluding Thoughts on Real Options……Page 1070
Summary……Page 1071
Self-Test Problem……Page 1072
Problems……Page 1073
Mini Case……Page 1075
Appendix A: Solutions to Self-Test Problems……Page 1078
Appendix B: Answers to End-of-Chapter Problems……Page 1112
Appendix C: Selected Equations……Page 1122
Appendix D: Values of the Areas under the Standard Normal Distribution Function……Page 1136
Glossary……Page 1138
Name Index……Page 1186
Subject Index……Page 1190

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