Financial Analysis and Decision Making
1st Edition
Published on 16. December 2002
339 pages
978-0-07-141559-0 (ISBN)
Description
A solid understanding of financial analysis is an essentialbut often overlookedprerequisite to making key strategic decisions.Financial Analysis and Decision Making explains how all professionals can use the tools and techniques of financial analysis to define problems, gather and organize relevant information, and improve problem-solving skills.David E. Vance, C.P.A., is an instructor in the M.B.A. program at Rutgers University School of Business and director of executive development for the Rohrer Center for Management and Entrepreneurship.
More details
Other editions
Additional editions
David Vance
Financial Analysis and Decision Making
Book
12/2002
McGraw-Hill Professional
€45.79
Article exhausted; check different version
Content
- Cover Page
- Financial Analysis and Decision Making
- Copyright
- Contents
- Preface
- Acknowledgments
- Chapter 1 Financial Statements and Accounting Concepts
- Income Statement
- Balance Sheet
- Statement of Cash Flows
- Accounting Definitions
- Generally Accepted Accounting Principles
- Summary
- Chapter 2 Financial Ratios and Other Measures of Performance
- Measurement of Operating Performance
- Measures of Financial Performance
- Risk Measurement
- Cautions on Ratios
- Summary
- Chapter 3 Factors Determining Interest Rates and RequiredDebt Yields
- Components of Interest: Risk-Free Rate of Return, Default, Liquidity,and Maturity Risk Premiums
- Effect of Supply and Demand on Interest Rates
- Summary
- Chapter 4 Forecasting Yield and Risk
- Forecasting with A Priori Probabilities
- Forecasting with Historical Data
- Using Expected Values and Standard Deviations to Make Decisions
- Portfolio Theory
- How to Use Required Rate of Return
- Summary
- Chapter 5 Time Value of Money
- Four Classes of Time Value Problems
- Future Value
- Future Value: Annual Growth Rates
- Future Value Formula
- Present Value Theory and Mathematical Formula
- Present Value Using Tables
- Present Value of an Annuity
- Loan Payments
- Loan Amortization Schedules
- Mathematical Formula for Present Value of an Annuity
- Future Value of an Annuity
- Mathematical Formula for Future Value of an Annuity
- Summary
- Chapter 6 Bond Valuation
- Bond Valuation
- Callable Bonds
- Convertible Bonds
- Bond Yield
- Yield to Call
- Interpolation Theory
- Summary
- Chapter 7 Leases
- Operating Versus Capital Leases
- Imputed Interest Rates
- Effect of Deposits and Prepayments on the Imputed Interest Rate
- Capitalizing Leases
- Summary
- Chapter 8 Stock Valuation
- Stock Valuation
- Computing Stock Value
- Stock Yield
- Stock Valuation Based on Cash Flow
- Stock Valuation Based on Earnings
- Stock Valuation Based on Sales
- Summary
- Chapter 9 Cost of Capital
- Cost of Debt Capital
- Cost of Preferred Stock Capital
- Cost of Common Equity
- Cost of New Common Equity Capital
- Cost-Free Capital
- Weighted Average Cost of Capital (WACC)
- When Should New Common Stock Be Issued?
- Cost of Leased Capital
- Marginal Cost of Capital
- Decision Rules for the Optimal Capital Budget
- Summary
- Chapter 10 Capital Budgeting
- Methods for Evaluating Capital Projects
- Payback Method
- Discounted Payback Method
- Net Present Value
- Internal Rate of Return
- Modified Rate of Return
- Comparison of Capital Budgeting Methods
- Summary
- Chapter 11 Cash Flow Estimation for Capital Budgeting
- Capital Budgeting Ground Rules
- Capital Budgeting Format
- Replacement Equipment
- Inflation and Price Pressure
- Spreadsheet Modeling
- Summary
- Chapter 12 Product Costing
- Cost Versus Expense
- Financial Accounting Versus Managerial Accounting
- Unallocated Manufacturing Overhead
- Expenses Versus Inventory
- Full Absorption Cost of Purchased Merchandise
- Make or Buy Decisions
- Managerial Accounting
- Gross Profit Versus Contribution
- Summary
- Chapter 13 Break-Even Analysis and Modeling
- Break-Even Analysis
- Modeling Profit
- Sales Volume Break-Even
- Relevant Range
- Reality Testing
- Break-Even and Risk
- Summary
- Chapter 14 Working Capital and Cash Budgeting
- Working Capital
- Cash Budgeting
- Opening a New Facility
- Line of Credit
- Seasonal Cash Demand
- Managing Working Capital
- Summary
- Chapter 15 Master Budgets and Variance Analysis
- Basic Budgets
- Master Budgets
- Master Budgets Versus Financial Statements
- Supplemental Budgets
- Summary
- Chapter 16 Pricing Theory
- Cost-Centered Pricing
- Market-Centered Pricing
- Engineered Cost
- Price Elasticity
- Product Life Cycle
- Transfer Pricing
- Opportunistic Pricing
- Microeconomics Pricing
- Summary
- Chapter 17 Advanced Cost Concepts and Allocation of Resources
- Cost Drivers
- Activity-Based Costing
- Job Costing
- Cost Drivers as a Method for Overhead Allocation
- Traditional Overhead Allocation
- Joint Products: Two Product Problem
- Theory of Constraints
- Profit Ladder
- New Product Selection
- Summary
- Chapter 18 Labor Costs
- Overtime
- Turnover Costs
- Workers' Compensation
- Unemployment Compensation Taxes
- Summary
- Appendixes
- Appendix A
- Appendix B
- Appendix C
- Appendix D
- Appendix E
- Appendix F
- Index
