CONTENTS Part 1 Introduction to Financial Management 1 The Role of Financial Management 1 2 The Business, Tax, and Financial Environments 15 Part 2 Valuation 3 The Time Value of Money 35 4 The Valuation of Long-Term Securities 67 5 Risk and Return 91 Part 3 Tools of Financial Analysis and Planning 6 Financial Statement Analysis 121 7 Funds Analysis, Cash-Flow Analysis, and Financial Planning 161 Part 4 Working Capital Management 8 Working Capital Management 197 9 Cash and Marketable Securities Management 213 10 Accounts Receivable and Inventory Management 231 11 Short-Term Financing 263 Part 5 Investment in Capital Assets 12 Capital Budgeting and Estimating Cash Flows 285 13 Capital Budgeting Techniques 299 14 Risk and Managerial (Real) Options in Capital Budgeting 327 Part 6 The Cost of Capital, Capital Structure, and Dividend Policy 15 Required Returns and the Cost of Capital 355 16 Operating and Financial Leverage 393 17 Capital Structure Determination 425 18 Dividend Policy 449 Part 7 Intermediate and Long-Term Financing 19 The Capital Market 479 20 Long-Term Debt, Preferred Stock, and Common Stock 501 21 Term Loans and Leases 525 Part 8 Special Areas of Financial Management 22 Convertibles, Exchangeables, and Warrants 545 23 Mergers and Other Forms of Corporate Restructuring 569 24 International Financial Management 603 Appendix 635 Glossary 645 Commonly Used Symbols 659 Index 661