CONTENTS Preface to the Second Edition v Preface to the First Edition vii 1. Statement of Changes in Financial Position 1.1-1.62 Basic Theory1.1 Solved Problems1.7 Exercises 1.57 Answers7.62 2. Ratio Analysis 2.1-2.39 Basic Theory 2.1 Solved Problems 2.6 Exercises 2.36 Answers 2.39 3. Basic Financial Concepts 3.1-3.19 Basic Theory 3.1 Solved Problems 3.6 Exercises 3.18 Answers 3.19 4. Cost of Capital 4.1-4.23 Basic Theory 4.1 Solved Problems 4.4 Exercises 4.20 , Answers 4.22 5. Capital Budgeting 5.1-5.79 Basic Theory 5.1 Solved Problems 5.5 Exercises 5.75 Answers 5.78 6. Risk Analysis 6.1-6.20 Basic Theory 6.1 Solved Problems 6.3 Exercises 6.18 Answers6.20 7. Leasing 7.1-7.33 Basic Theory7.1 Solved Problems7.3 Exercises 7.31 Answers7.33 8. Mergers and Acquisitions 8.1-8.17 Basic Theory 8.1 Solved Problems 8.2 Exercises 8.15 Answers8.17 9. Analysis of Leverage 9.1-9.15 Basic Theory9.1 Solved Problems9.2 Exercises 9.13 Answers9.14 10. Capital Structure Theories 10.1-10.13 Basic Theory10.1 Solved Problems10.3 Exercises10.12 Answers 10.13 11. Capital Structure Planning 11.1-11.26 Basic Theory 11.7 Solved Problems11.3 Exercises11.24 Answers 11.26 12. Dividend Policy 12.1-12.13 Basic Theory12.7 Solved Problems12.3 Exercises12.72 Answers 12.13 13. Working Capital Planning 13.1-13.21 Basic Theory13.7 Solved Problems13.3 Exercises13.79 Answers 13.27 14. Cash Management 14.1-14.26 Basic Theory14.1 Solved Problems 14.3 Exercises14.24 Answers 14.26 15. Receivables Management 15.1-15.14 Basic Theory15.1 Solved Problems15.2 Exercises 15.12 Answers 15.13 16. Inventory Management 16.1-16.10 Basic Theory 16.7 Solved Problems16.2 Exercises 16.9 Answers 16.10