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Business Finance Essentials

Business

Author: Kevin Bracker, Fang Lin, Jennifer Pursley
Publisher: Pittsburg State University
Source: LibreTexts
License: CC BY-NC
Language: EN
Category: Economics

Read online Download PDF (open licence)

Contents· 169 sections

01: Introduction to Financial Management
1.01: What is Finance
1.02: Forms of Business Organization
1.03: Advantages of Corporations
1.04: Disadvantages of Corporations
1.05: Stocks vs. Bonds
1.06: Goals of the Financial Manager
1.07: Risk Aversion
1.08: Social Responsibility and Ethics
1.09: International Issues
1.10: Agency Relationships
1.11: Key Takeaways
1.12: Exercises
1.13: References and Attributions
02: Financial Statement Analysis
2.01: Key Financial Statements
2.02: Financial Statements Analysis
2.03: Who Uses Financial Statement Analysis
2.04: Putting it All Together
2.05: Key Takeaways
2.06: Exercises
2.07: Problems
2.08: References and Attributions
03: Time Value of Money
3.01: The Power of Compound Interest
3.02: Future Value
3.03: Present Value
3.04: Annuities
3.05: Solving for PMT I YR or N
3.06: Perpetuities
3.07: Uneven Cash Flow Streams
3.08: Non-Annual Compounding
3.09: Return to Future Value Tables
3.10: Complex Time Value of Money Problems
3.11: Key Takeaways
3.12: Exercises
3.13: Problems
3.14: References and Attributions
04: Valuation and Bond Analysis
4.01: Valuation Concepts
4.02: Three-Step Valuation Process
4.03: Bond Pricing
4.04: Bond Prices and Interest Rates
4.05: Yield-to-Maturity (YTM)
4.06: Call Provisions
4.07: Zero Coupon Bonds
4.08: Bond Ratings and Default Risk
4.09: Key Takeaways
4.10: Exercises
4.11: Problems
4.12: References and Attributions
05: Stocks and Stock Valuation
5.01: Stock Valuation
5.02: Market Efficiency
5.03: Par Value vs. Book Value vs. Market Value
5.04: Rights and Privileges of Common Stockholders
5.05: Stock Valuation in a Non-Textbook World
5.06: Key Takeaways
5.07: Exercises
5.08: Problems
5.09: References and Attributions
06: The Financial System and Interest Rates
6.01: Financial System
6.02: Components of the Financial System
6.03: Key Market Distinctions
6.04: More on Financial Markets
6.05: Determinants of Interest Rates
6.06: Further Discussion of Interest Rate Determinants
6.07: The Yield Curve
6.08: The Federal Reserve System
6.09: Key Takeaways
6.10: Exercises
6.11: References and Attributions
07: Risk Analysis
7.01: What is Risk
7.02: Expected Return and Standard Deviation of a Single Security
7.03: Interpreting Expected Return and Standard Deviation
7.04: Expected Return and Standard Deviation of a Portfolio
7.05: Diversifiable and Non-Diversifiable Risk
7.06: Beta
7.07: How do we Interpret Beta
7.08: Standard Deviation vs. Beta
7.09: Beta and Required Return- Capital Asset Pricing Model (CAPM)
7.10: Important Implications of the CAPM SML
7.11: Empirical Findings of the SML
7.12: Key Takeaways
7.13: Exercises
7.14: Problems
7.15: References and Attributions
08: Introduction to Capital Budgeting
8.01: What is Capital Budgeting
8.02: Mutually Exclusive vs. Independent Projects
8.03: Capital Budgeting Decision Criteria
8.04: Capital Budgeting Process
8.05: Capital Budgeting Decision Techniques
8.06: Capital Budgeting in Practice
8.07: Key Takeaways
8.08: Exercises
8.09: Problems
8.10: References and Attributions
09: Mutual Funds IRAs and 401(k) Plans
9.01: Retirement
9.02: Mutual Funds
9.03: Individual Retirement Accounts (2021)
9.04: 401(k) PLANS
9.05: Key Takeaways
9.06: Exercises
9.07: References and Attributions
10: Marginal Cost of Capital
10.01: What is the Marginal Cost of Capital
10.02: When is the MCC appropriately used as the required return for capital budgeting
10.03: The Key Components of the Cost of Capital
10.04: Estimating the Market Value Weights of the Financing Components
10.05: Estimating the After-Tax Cost of Debt
10.06: Estimating the Cost of Preferred Stock
10.07: Estimating the Cost of Common Stock
10.08: MCC Example
10.09: Capital Structure
10.10: Key Takeaways
10.11: Exercises
10.12: Problem
10.13: References and Attributions
11: International Finance
11.01: Why Do Firms Establish International Operations
11.02: Difficulties in International Operations
11.03: Currency Issues
11.04: Factors Influencing Exchange Rates
11.05: Types of Currency Quotations
11.06: Currency Conversion
11.07: Strengthening vs. Weakening Currencies
11.08: Cross Currency Exchange Rates
11.09: Spot vs. Forward Rates
11.10: Hedging vs. Speculating
11.11: International Investing
11.12: Key Takeaways
11.13: Exercises
11.14: Problems
11.15: References and Attributions
12: Appendix A- Financial Tables
13: Appendix B
13.01: Explanations of Ratios (CH 2)
13.02: Financial Statement Analysis Guided Tutorial (CH 2)
13.03: Financial Statements from Walmart and Target (CH 2)
13.04: Financial Statements for Joe's Gadgets (CH2)
13.05: Table- Future Value of a 250 per month investment (CH3)
13.06: Setting up Your Financial Calculator (CH3)
13.07: TVM 5-Key Approach Guided Tutorials with TI-BAII (CH3)
13.08: TVM 5-Key Approach Guided Tutorial with HP10BII (CH3)
13.09: TVM 5-Key Approach Guided Tutorial with TI-83 or TI-84 (CH3)
13.10: Bond Rating Scales (CH 4)
13.11: Efficient Markets Hypothesis (CH 5)
13.12: Sample of Stock Information (CH 5)
13.13: Stock Valuation Guided Tutorial with Calculations (CH 5)
13.14: Observed Correlations Returns Standard Deviations and Betas Table (CH 7)
13.15: Risk and Return Guided Tutorial (CH 7)
13.16: Table- Correlations Returns and St. Deviations Across National Equity Markets (CH11)
13.17: Table- Foreign currency relative to US dollar in 2020 (CH11)
14: Solutions to Chapter Exercises
14.01: Solutions to CH 1 Exercises
14.02: Solutions to CH 2 Exercises
14.03: Solutions to CH 3 Exercises
14.04: Solutions to CH 4 Exercises
14.05: Solutions to CH 5 Exercises
14.06: Solutions to CH 6 Exercises
14.07: Solutions to CH 7 Exercises
14.08: Solutions to CH 8 Exercises
14.09: Solutions to CH 9 Exercises
14.10: Solutions to CH 10 Exercises
14.11: Solutions to CH 11 Exercises