Part I Basis of Financial Valuation Chapter 1 Introduction to Financial Management 1.1 Financial Management and Financial Manager 1.1.1 Financial Management 1.1.2 Financial Manager 1.2 Objectives and Functions of Financial Management 1.2.1 Objectives of Financial Management 1.2.2 Functions of Financial Management 1.3 Financial Market and Market Efficiency 1.3.1 Financial Market 1.3.2 Market Efficiency 1.3.3 Degrees of Market Efficiency 1.4 Agency Relationships 1.4.1 Agency Problems 1.4.2 Agency Costs 1.4.3 Practical Solutions to the Agency Problems Questions and Problems Chapter 2 Introduction to Financial Statements 2.1 Financial Statements and Annual Reports 2.1.1 OverviewofFinancial Statements 2.1.2 Corporate Annual Reports 2.2 Analysis of Financial Statements 2.2.1 The Need for Ratios 2.2.2 Types of Accounting Ratios 2.2.3 Users of Ratios 2.2.4 Categories of Ratio Questions and Problems Chapter 3 Time Value of Money 3.1 Value Creation and Corporate Investment 3.2 Simple and Compound Interest 3.2.1 Simple Interest 3.2.2 Compound Interest 3.3 Future Value and Present Value 3.3.1 Future Value 3.3.2 Present Value 3.3.3 Determining the Rate of Interest 3.3.4 Annuity Questions and Problems Part II Capital Budgeting Chapter 4 Risk and Return 4.1 Understanding Return 4.1.1 Return 4.1.2 Measuring Return 4.2 Understanding Risk 4.2.1 Risk 4.2.2 Measuring Risk 4.3 Portfolio Theory 4.3.1 Basic Assumptions 4.3.2 Portfolio Return and Risk 4.3.3 Minimum-Variance and Efficient Frontiers
4.3.4 The Selection of an Optimal Portfolio 4.3.5 Systematic Risk and Unsystematic Risk 4.4 Capital Asset Pricing Model (CAPM) Questions and Problems Chapter 5 Categories of Capital Budgeting Projects 5.1 Capital Budgeting 5.2 Project Appraisal 5.2.1 Categories of Capital Budgeting Projects 5.2.2 Are Profit Calculations Useful for Estimating Project Viability 5.2.3 Guidelines for Estimating Project Cash Flows 5.3 Project Appraisal Rules 5.3.1 Net Present Value (NPV) 5.3.2 Internal Rate of Return (IRR) 5.3.3 Payback Period and Discounted Payback Period 5.3.4 Accounting Rate of Return 5.4 The Investment Process Questions and Problems Chapter 6 Cost of Capital 6.1 Introduction to the Cost of Capital 6.1.1 Source of Finance 6.1.2 What is the Cost of Capital 6.1.3 General Model to Estimate the Cost of Capital 6.2 Cost of Debt 6.3 Cost of Equity 6.3.1 Cost of Preferred Stock 6.3.2 Cost of Common Equity 6.4 Weighted Average Cost of Capital 6.4.1 What is the Weighted Average Cost of Capital 6.4.2 Factors Affecting the Weighted Average Cost of Capital Questions and Problems Part III Financing Decision Chapter 7 CapitalStructure 7.1 Leverage Analysis 7.1.1 Operating Leverage 7.1.2 Financial Leverage 7.1.3 Total Leverage 7.1.4 Financial Risk and Financial Leverage 7.2 Capital Structure and Cost of Capital 7.3 Capital Structure Theory 7.4 Factors that Influence a Firm's Capital Structure Decision 7.5 Features of an Optimal Capital Structure 7.6 Value of a Firm and Cost of Capital Questions and Problems Chapter 8 Dividend Policy 8.1 Dividend Payments 8.1.1 Dividend 8.1.2 Cash Dividend, Stock Dividend and Stock Split 8.1.3 Dividends Payment 8.2 Overview of Dividend Policy 8.2.1 Factors Affecting Dividend Policy
8.2.2 Residual Policy 8.2.3 Constant Dividend Payout Ratio 8.2.4 Stable Dividend Policy 8.3 Share Repurchase Questions and Problems Part IV Valuation Chapter 9 Introduction to Asset Valuation 9.1 Asset Valuation 9.1.1 Definition of Asset Valuation 9.1.2 Characteristics of Asset Valuation 9.2 Assumptions of Asset Valuation 9.2.1 Open Market Concepts 9.2.2 Continue to Use Concepts 9.2.3 Liquidation Concepts 9.3 Types of Value 9.3.1 Market Value 9.3.2 Replacement Cost 9.3.3 Present Value 9.3.4 Liquidation Value 9.4 Procedures of Asset Valuation 9.5 Approaches of Asset Valuation 9.5.1 Market Approach 9.5.2 Income Approach 9.5.3 Cost Approach Questions and Problems Chapter 10 Equity & Corporate Valuation 10.1 Equity Valuation 10.1.1 Dividends Discount Model 10.1.2 Free Cash Flow to Equity Discount Model 10.2 Corporate Valuation 10.2.1 Free Cash Flow to the Firm Discount Model 10.2.2 Price-Earnings Ratio Questions and Problems Appendix I Future Value of $1 at Compound Interest Appendix II Present Value of $1 at Compound Interest Appendix III Present Value of an Annuity of $1 at Compound Interest Appendix IV Future Value of an Annuity of $1 at Compound Interest
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