financial management & analysis - fabozzi

[...]... a co-author with Don Chance of Real Options (AIMR Research Foundation, 2002), is a co-author with Frank J Fabozzi of Capital Budgeting (John Wiley & Sons, 2002) and Analysis of Financial Statements (published by Frank J Fabozzi Associates, 1999), co-author with David R Peterson of the AIMR monograph Company Performance and Measures of Value Added (1996), and author of Financial Management and Analysis. .. careful, step-by-step examples and numerous graphs ORGANIZATION Financial Management and Analysis is presented in seven parts The first two parts (Parts One and Two) cover the basics, including the objective of financial management, valuation principles, and the relation between risk and return Financial decision-making is covered in Parts Three, Four, and Five where we present long-term investment management. .. finance, you will be concerned with Introduction to Financial Management and Analysis 5 these factors Expected return is the difference between potential benefits and potential costs Risk is the degree of uncertainty associated with these expected returns Financial Analysis Financial analysis is a tool of financial management It consists of the evaluation of the financial condition and operating performance... McGraw-Hill, 1994) Professor Peterson has published articles in journals including the Journal of Finance, the Journal of Financial Economics, the Journal of Banking and Finance, Financial Management, and the Financial Analysts Journal xiii PART One Foundations CHAPTER 1 Introduction to Financial Management and Analysis inance is the application of economic principles and concepts to business decision-making... field of finance can be considered to comprise three broad categories: financial management, investments, and financial institutions: F ■ Financial management Sometimes called corporate finance or busi- ness finance, this area of finance is concerned primarily with financial decision-making within a business entity Financial management decisions include maintaining cash balances, extending credit, acquiring... management (commonly referred to as capital budgeting), the management of long-term sources of funds, and working capital management Part Six covers financial statement analysis which includes financial ratio analysis, earnings analysis, and cash flow analysis The last part (Part Seven) covers several specialized topics: international financial management, borrowing via structured financial transactions... Data for financial analysis may come from other areas within the firm, such as marketing and production departments, from the firm’s own accounting data, or from financial information vendors such as Bloomberg Financial Markets, Moody’s Investors Service, Standard & Poor’s Corporation, Fitch Ratings, and Value Line, as well as from government publications, such as the Federal Reserve Bulletin Financial. .. Introduction to Financial Management and Analysis 15 their investment, and the maximization of accounting profit is not equivalent to the maximization of shareholder wealth.4 Many U S corporations, including Coca−Cola, Briggs & Stratton, and Boise Cascade, are embracing a relatively new method of evaluating and rewarding management performance that is based on the idea of compensating management for... proprietor’s heirs Introduction to Financial Management and Analysis 7 Partnerships A partnership is an agreement between two or more persons to operate a business A partnership is similar to a sole proprietorship except instead of one proprietor, there is more than one The fact that there is more than one proprietor introduces some issues: Who has a say in the day-to-day operations of the business?... corporation or a closely-held corporation A corporation whose ownership shares are sold outside of a closed group of owners is referred to as a public corporation or a publicly-held corporation Mars Inc., producer of M&M candies and other confectionery products, is a closely-held corporation; Hershey Foods, also a producer of candy products among other things, is a publicly-held corporation The shares . 22 Financial Ratio Analysis 721 CHAPTER 23 Earnings Analysis 775 CHAPTER 24 Cash Flow Analysis 797 PART SEVEN Selected Topics in Financial Management 821 CHAPTER 25 International Financial Management. technical support, please con- tact our Customer Care Department within the United States at 80 0-7 6 2-2 974, outside the United States at 31 7-5 7 2-3 993, or fax 31 7-5 7 2-4 002. Wiley also publishes. permission should be addressed to the Per- missions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 20 1- 74 8-6 011, fax 20 1-7 4 8-6 008, e-mail: permcoordinator@wiley.com. Limit