Financial management and analysis phần 1 ppsx

[...]... (19 96), and author of Financial Management and Analysis (published by McGraw-Hill, 19 94) 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... 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 of a business... 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 (commonly referred to as capital budgeting), the management of long-term sources of funds, and working capital management Part Six... in 19 81 Professor Peterson is 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, 19 99), co-author with David R Peterson of the AIMR monograph Company Performance and Measures of Value Added (19 96), and author of 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... (April 16 , 19 96), pp A3, A6 Introduction to Financial Management and Analysis 21 Owners have one more tool with which to motivate management the threat of firing As long as owners can fire managers, managers will be encouraged to act in the owners’ interest However, if the owners are divided or apathetic—as they often are in large corporations—or if they fail to monitor management s performance and the... economy, and the forecasting of its future condition and performance It is, in other words, a means for examining risk and expected return 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... companies Introduction to Financial Management and Analysis 11 Though state laws vary slightly, in general, the owners of the LLC have limited liability The IRS considers the LLC to be taxed as a partnership if the company has no more than two of the following characteristics: (1) limited liability, (2) centralized management, (3) free transferability of ownership interests, and (4) continuity of life... principles and concepts to business decision-making and problem solving The 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. .. principles and theories of finance using intuition, instead of with proofs and theorems For example, we walk you through the intuition of capital structure theory with numerical and real world examples, not equations and proofs Another way we try to assist you is to approach the tools of finance using careful, step-by-step examples and numerous graphs ORGANIZATION Financial Management and Analysis is . 30, 2003 11 :35 AM PART One Foundations Part1 Page 1 Wednesday, April 30, 2003 11 :38 AM Part1 Page 2 Wednesday, April 30, 2003 11 :38 AM CHAPTER 1 3 Introduction to Financial Management and Analysis inance. 719 CHAPTER 22 Financial Ratio Analysis 7 21 CHAPTER 23 Earnings Analysis 775 CHAPTER 24 Cash Flow Analysis 797 PART SEVEN Selected Topics in Financial Management 8 21 CHAPTER 25 International Financial. 625 CHAPTER 19 Management of Cash and Marketable Securities 627 CHAPTER 20 Management of Receivables and Inventory 6 51 CHAPTER 21 Management of Short-Term Financing 679 PART SIX Financial Statement Analysis