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Contemporary Financial Management

By R. Charles Moyer, James R. McGuigan, Ramesh P. Rao

14th Edition © 2018
Discipline:Finance
Course:Corporate Finance
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Contemporary Financial Management (CFM), 14e, emphasizes the overriding goal of value creation, and the tools used to manage the assets of an enterprise, optimize sources of financing, control financial risk, recognize the value of real and financial options, and enhance a firm’s cash flows. These skills are learned within the context of abiding by ethical business practices, following sound corporate governance principles, and recognizing the importance of the extensive international dimensions of financial management. CFM 14e is updated to reflect recent real world illustrations of the use of these tools.

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Contemporary Financial Management (CFM), 14e, emphasizes the overriding goal of value creation, and the tools used to manage the assets of an enterprise, optimize sources of financing, control financial risk, recognize the value of real and financial options, and enhance a firm’s cash flows. These skills are learned within the context of abiding by ethical business practices, following sound corporate governance principles, and recognizing the importance of the extensive international dimensions of financial management. CFM 14e is updated to reflect recent real world illustrations of the use of these tools.

CHAPTER-OPENING FINANCIAL CHALLENGES: Spotlighting some of the most challenging scenarios in the field today, chapter-opening "Financial Challenges" immediately direct students' attention toward the chapter concepts and bring them to life in the context of real-world practice. Many are new to this edition.

FOUNDATION CONCEPTS HIGHLIGHT VITAL CONTENT: Unique "Foundation Concepts" icons clearly identify the finance concepts within each chapter that are most vital for students to know -- helping them maximize their study time.

INTEGRATIVE CASES WITH EXCEL®: At the end of appropriate chapters, a set of comprehensive Integrative Cases provides important hands-on applications to give students experience putting what they learn into practice. Many of the cases can be used with the Excel® templates on the website as students learn the power of computers in performing sensitivity analysis.

ETHICS, INTERNATIONAL, AND ENTREPRENEURIAL ISSUES: Unique "Ethical Issues" boxes raise sensitivity to ethical challenges facing managers -- prompting lively class discussion. "International Issues" illustrate global considerations necessary to making fina

Table of contents

Chapters

Cover Page
Title Page
Copyright Page
Dedication
About the Authors
Preface
Acknowledgments
Part 1. Introduction
Part 2. Determinants of Valuation
Part 3. The Capital Investment Decision
Part 4. The Cost of Capital, Capital Structure, and Dividend Policy
Part 5. Working Capital Management
Part 6. Additional Topics in Contemporary Financial Management
Reference Materials
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Part 1. Introduction

Chapter 1. The Role and Objective of Financial Management
Preview this section ↗
1-1. Introduction ↗
1-2. The Goal of Shareholder Wealth Maximization ↗
1-2a. Stakeholder Concerns ↗
1-2b. Divergent Objectives ↗
1-2c. Agency Problems ↗
1-3. Maximization of Shareholder Wealth: Managerial Strategies ↗
1-3a. Determinants of Value ↗
1-3b. Managerial Actions to Influence Value ↗
1-4. Forms of Business Organization ↗
1-4a. Sole Proprietorship ↗
1-4b. Partnership ↗
1-4c. Corporation ↗
1-4d. Other Types of Business Organizations ↗
1-5. Organization of the Financial Management Function ↗
1-5a. Financial Management and Other Disciplines ↗
1-5b. Marketing, Production, Quantitative Methods, and Human Resources Management ↗
1-6. Career Opportunities in Finance ↗
1-7. Professional Finance Affiliations and Certifications ↗
1-8. Summary ↗
1-9. Questions and Topics for Discussion ↗
Chapter 2. The Domestic and International Financial Marketplace
2-1. Introduction
2-2. An Overview of the U.S. Financial System
2-2a. Financial Assets
2-2b. Financial Markets
2-2c. Financial Intermediaries
2-3. The Structure and Operation of U.S. Security Markets
2-3a. Security Exchanges and Stock Market Indexes
2-3b. Regulation of the Security Markets
2-4. The Global Economy and Multinational Enterprises
2-5. Foreign Currency Markets and Exchange Rates
2-5a. The Eurocurrency Market
2-5b. The Euro: A Common European Currency
2-5c. Direct and Indirect Quotes
2-5d. Spot Rates
2-5e. Forward Rates
2-5f. Foreign Currency Futures
2-5g. Foreign Currency Options
2-6. Market Efficiency
2-6a. Information and Capital Market Efficiency
2-6b. Degrees of Market Efficiency
2-6c. Implications of Market Efficiency for Financial Managers
2-6d. Behavioral Finance Perspectives on the Financial Marketplace
2-7. Holding Period Returns
2-8. Overview of the Financial Crisis beginning in 2007
2-8a. Causes of the Financial Crisis
2-8b. How Firms Were Affected by the Financial Crisis
2-9. Income Taxes and Financial Management
2-9a. Implications of Income Taxes for Financial Managers
2-9b. Tax Rate Used in the Text
2-10. Summary
2-11. Questions and Topics for Discussion
2-12. Self-Test Problems
2-13. Problems
Appendix 2A. Taxes
Chapter 3. Evaluation of Financial Performance
3-1. Introduction
3-1a. Uses of Financial Analysis
3-1b. Interpreting Financial Ratios
3-2. Basic Classifications of Financial Ratios
3-2a. Key Financial Statements
3-2b. Liquidity Ratios
3-2c. Asset Management Ratios
3-2d. Financial Leverage Management Ratios
3-2e. Profitability Ratios
3-2f. Market-Based Ratios
3-2g. Dividend Policy Ratios
3-3. Summary of Financial Ratio Analysis
3-4. Trend Analysis
3-5. Analysis of Profitability: Return on Investment
3-6. Analyzing Profitability through Return on Stockholders’ Equity
3-7. Sources of Comparative Financial Data
3-8. A Word of Caution about Financial Ratio Analysis
3-9. Earnings and Balance Sheet Quality and Financial Analysis
3-9a. Earnings Quality
3-9b. Balance Sheet Quality
3-10. Market Value Added/Economic Value Added: An Alternative Measure of Performance
3-10a. The Market Value Added Concept
3-10b. Economic Value Added
3-11. Inflation and Financial Statement Analysis
3-12. Summary
3-13. Questions and Topics for Discussion
3-14. Self-Test Problems
3-15. Problems
Chapter 4. Financial Planning and Forecasting
4-1. Introduction
4-2. Financial Planning
4-3. Cash Flow Analysis
4-3a. The Cash Flow Generation Process
4-3b. Importance of Cash Flows
4-3c. Cash Flows and Shareholder Wealth
4-3d. The Cash Flow Concept
4-3e. The Statement of Cash Flows
4-4. Financial Forecasting
4-4a. Percentage of Sales Forecasting Method
4-4b. Cash Budgeting
4-4c. Pro Forma Statement of Cash Flows
4-4d. Computerized Financial Forecasting and Planning Models
4-4e. Using Financial Ratios to Forecast Future Financial Performance
4-5. Summary
4-6. Questions and Topics for Discussion
4-7. Self-Test Problems
4-8. Problems

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