Financial Management and PolicyIntegrating financial theory and practice, this text explores the theory of finance as it relates to a corporation's investment in assets, financing and dividends. It explains ways in which analytical techniques are brought to bear on financial decision making and supplies the institutional material necessary to aid in student's understanding of the environment in which financial decisions are made. |
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Page 179
... million 0.5 0 0.5 There is a 50-50 chance the market will take off . If it does , the net present value of the new investment at the end of year 2 will be $ 15 million . When dis- counted at the required rate of return , NPV at time 0 ...
... million 0.5 0 0.5 There is a 50-50 chance the market will take off . If it does , the net present value of the new investment at the end of year 2 will be $ 15 million . When dis- counted at the required rate of return , NPV at time 0 ...
Page 299
... million in 6 percent debt . The company is considering a $ 3 million expansion program that it can finance with ( 1 ) all common stock at $ 60 a share , ( 2 ) straight bonds at 8 percent interest , ( 3 ) preferred stock at 7 percent ...
... million in 6 percent debt . The company is considering a $ 3 million expansion program that it can finance with ( 1 ) all common stock at $ 60 a share , ( 2 ) straight bonds at 8 percent interest , ( 3 ) preferred stock at 7 percent ...
Page 628
... million , if the division were to be liquidated the assets would fetch only $ 95 million . Alsim has decided to sell the division if it can obtain $ 110 million in cash , and it has enlisted an investment banker to assist it in the sale ...
... million , if the division were to be liquidated the assets would fetch only $ 95 million . Alsim has decided to sell the division if it can obtain $ 110 million in cash , and it has enlisted an investment banker to assist it in the sale ...
Contents
FOUNDATIONS OF FINANCE | 1 |
Financial theory and practice continue to change rapidly Not only have | 6 |
Concepts in Valuation | 9 |
Copyright | |
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analysis annual arbitrage assets assume average bank bankruptcy beta Black-Scholes bond borrower capital structure CAPM cash flows cash outflow Chapter coefficient common stock company's convertible security corporate coupon debt decision depreciation determine discount rate earnings per share effect equity excess returns exercise price expected return factors Financial Economics financial manager financing firm funds future futures contract greater growth hedge holders income increase inflation interest rate internal rate inventory investment proposals investors issue Journal of Financial lease lender leverage liabilities liquidity loan market portfolio market price market value maturity ment million net present value option pricing payments percent period preferred stock premium present value probability distribution profit rate of return required rate required return risk-free rate sell share price shareholders standard deviation stock price stockholders systematic risk tax rate tax shield terminal value tion valuation yield zero