Principles of Finance Julie Dahlquist

Format:

Book

Author/Creator:

Dahlquist, Julie, author.

Adams, Alan S., author.

Knight, Rainford, author.

Contributor:

Open Textbook Library, distributor.

Series:

Open textbook library.

Language:

English

Subjects (All):

Finance--Textbooks.

Finance.

Physical Description:

1 online resource

Distribution:

Minneapolis, MN Open Textbook Library

Place of Publication:

[Place of publication not identified] OpenStax 2022.

Language Note:

In English.

System Details:

data file

Summary:

Designed to meet the scope and sequence of your course, Principles of Finance provides a strong foundation in financial applications using an innovative use-case approach to explore their role in business decision-making. An array of financial calculator and downloadable Microsoft Excel data exercises also engage students in experiential learning throughout. With flexible integration of technical instruction and data, this title prepares students for current practice and continual evolution.

Contents:

Preface

Chapter 1. Introduction to Finance

Why it Matters

1.1 What Is Finance?

1.2 The Role of Finance in an Organization

1.3 Importance of Data and Technology

1.4 Careers in Finance

1.5 Markets and Participants

1.6 Microeconomic and Macroeconomic Matters

1.7 Financial Instruments

1.8 Concepts of Time and Value

Summary

Key Terms

Multiple Choice

Review Questions

Video Activity

Chapter 2. Corporate Structure and Governance

2.1 Business Structures

2.2 Relationship between Shareholders and Company Management

2.3 Role of the Board of Directors

2.4 Agency Issues: Shareholders and Corporate Boards

2.5 Interacting with Investors, Intermediaries, and Other Market Participants

2.6 Companies in Domestic and Global Markets

CFA Institute

Chapter 3. Economic Foundations: Money and Rates

Why It Matters

3.1 Microeconomics

3.2 Macroeconomics

3.3 Business Cycles and Economic Activity

3.4 Interest Rates

3.5 Foreign Exchange Rates

3.6 Sources and Characteristics of Economic Data

Problems

Chapter 4. Accrual Accounting Process

4.1 Cash versus Accrual Accounting

4.2 Economic Basis for Accrual Accounting

4.3 How Does a Company Recognize a Sale and an Expense?

4.4 When Should a Company Capitalize or Expense an Item?

4.5 What Is "Profit" versus "Loss" for the Company?

Chapter 5. Financial Statements

5.1 The Income Statement

5.2 The Balance Sheet

5.3 The Relationship between the Balance Sheet and the Income Statement

5.4 The Statement of Owner's Equity

5.5 The Statement of Cash Flows

5.6 Operating Cash Flow and Free Cash Flow to the Firm (FCFF)

5.7 Common-Size Statements

5.8 Reporting Financial Activity

Chapter 6. Measures of Financial Health

6.1 Ratios: Condensing Information into Smaller Pieces

6.2 Operating Efficiency Ratios

6.3 Liquidity Ratios

6.4 Solvency Ratios

6.5 Market Value Ratios

6.6 Profitability Ratios and the DuPont Method

Chapter 7. Time Value of Money I: Single Payment Value

7.1 Now versus Later Concepts

7.2 Time Value of Money (TVM) Basics

7.3 Methods for Solving Time Value of Money Problems

7.4 Applications of TVM in Finance

Chapter 8. Time Value of Money II: Equal Multiple Payments

8.1 Perpetuities

8.2 Annuities

8.3 Loan Amortization

8.4 Stated versus Effective Rates

8.5 Equal Payments with a Financial Calculator and Excel

Chapter 9. Time Value of Money III: Unequal Multiple Payments Values

9.1 Timing of Cash Flows

9.2 Unequal Payments Using a Financial Calculator or Microsoft Excel

Chapter 10. Bonds and Bond Valuation

10.1 Characteristics of Bonds

10.2 Bond Valuation

10.3 Using the Yield Curve

10.4 Risks of Interest Rates and Default

10.5 Using Spreadsheets to Solve Bond Problems

Chapter 11. Stocks and Stock Valuation

11.1 Multiple Approaches to Stock Valuation

11.2 Dividend Discount Models (DDMs)

11.3 Discounted Cash Flow (DCF) Model

11.4 Preferred Stock

11.5 Efficient Markets

Chapter 12. Historical Performance of US Markets

12.1 Overview of US Financial Markets

12.2 Historical Picture of Inflation

12.3 Historical Picture of Returns to Bonds

12.4 Historical Picture of Returns to Stocks

Chapter 13. Statistical Analysis in Finance

13.1 Measures of Center

13.2 Measures of Spread

13.3 Measures of Position

13.4 Statistical Distributions

13.5 Probability Distributions

13.6 Data Visualization and Graphical Displays

13.7 The R Statistical Analysis Tool

Chapter 14. Regression Analysis in Finance

14.1 Correlation Analysis

14.2 Linear Regression Analysis

14.3 Best-Fit Linear Model

14.4 Regression Applications in Finance

14.5 Predictions and Prediction Intervals

14.6 Use of R Statistical Analysis Tool for Regression Analysis

Chapter 15. How to Think about Investing

15.1 Risk and Return to an Individual Asset

15.2 Risk and Return to Multiple Assets

15.3 The Capital Asset Pricing Model (CAPM)

15.4 Applications in Performance Measurement

15.5 Using Excel to Make Investment Decisions

Chapter 16. How Companies Think about Investing

16.1 Payback Period Method

16.2 Net Present Value (NPV) Method

16.3 Internal Rate of Return (IRR) Method

16.4 Alternative Methods

16.5 Choosing between Projects

16.6 Using Excel to Make Company Investment Decisions

Chapter 17. How Firms Raise Capital

17.1 The Concept of Capital Structure

17.2 The Costs of Debt and Equity Capital

17.3 Calculating the Weighted Average Cost of Capital

17.4 Capital Structure Choices

17.5 Optimal Capital Structure

17.6 Alternative Sources of Funds

Chapter 18. Financial Forecasting

18.1 The Importance of Forecasting

18.2 Forecasting Sales

18.3 Pro Forma Financials

18.4 Generating the Complete Forecast

18.5 Forecasting Cash Flow and Assessing the Value of Growth

18.6 Using Excel to Create the Long-Term Forecast

Chapter 19. The Importance of Trade Credit and Working Capital in Planning

19.1 What Is Working Capital?

19.2 What Is Trade Credit?

19.3 Cash Management

19.4 Receivables Management

19.5 Inventory Management

19.6 Using Excel to Create the Short-Term Plan

Chapter 20. Risk management and the Financial Manager

20.1 The Importance of Risk Management

20.2 Commodity Price Risk

20.3 Exchange Rates and Risk

20.4 Interest Rate Risk

Index

Notes:

Description based on online resource

ISBN:

9781951693541