{"product_id":"introduction-to-finance-isbn-9781119561170","title":"Introduction to Finance","description":"\u003cp\u003e\u003ci\u003eIntroduction to Finance, 17th Edition \u003c\/i\u003eoffers students a balanced introduction to the three major areas of finance: institutions and markets, investments, and financial management. Updated to incorporate recent economic and financial events, this new edition is an ideal textbook for first courses in finance—reviewing the discipline’s essential concepts, principles, and practices in a clear, reader-friendly manner. Students gain an integrated perspective of finance by learning how markets and institutions influence, and are influenced by, individuals, businesses, and governments.\u003c\/p\u003e \u003cp\u003eDesigned to impart financial literacy to readers with no previous background in the subject, the text provides a solid foundation for students to build upon in later courses in financial management, investments, or financial markets. Equations and mathematical concepts are kept to a minimum, and include understandable, step-by-step solutions. Divided into three parts, the book explains financial markets, discusses the functions of financial systems, reviews savings and investments in different sectors, describes accounting concepts and organizational structures, and more. Real-world examples featured throughout the text help students understand important concepts and appreciate the role of finance in various local, national, and global settings.\u003c\/p\u003e \u003cp\u003ePreface iv\u003c\/p\u003e \u003cp\u003eAuthor Bios xii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 1 Institutions and Markets\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 The Financial Environment 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 What is Finance? 6\u003c\/p\u003e \u003cp\u003e1.2 Why Study Finance? 8\u003c\/p\u003e \u003cp\u003e1.3 Six Principles of Finance 10\u003c\/p\u003e \u003cp\u003e1.4 Overview of the Financial System 13\u003c\/p\u003e \u003cp\u003e1.5 Financial Markets: Characteristics and Types 17\u003c\/p\u003e \u003cp\u003e1.6 Careers in Finance 18\u003c\/p\u003e \u003cp\u003e1.7 The Plan of Study 20\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 21\u003c\/p\u003e \u003cp\u003eSummary 21\u003c\/p\u003e \u003cp\u003eKey Terms 22\u003c\/p\u003e \u003cp\u003eReview Questions 22\u003c\/p\u003e \u003cp\u003eExercises 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Money and the Monetary System 24\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 The 2007–2008 Financial Crisis and Subsequent Recovery 25\u003c\/p\u003e \u003cp\u003e2.2 Process of Moving Savings into Investments 26\u003c\/p\u003e \u003cp\u003e2.3 Overview of the Monetary System 28\u003c\/p\u003e \u003cp\u003e2.4 Characteristics and Functions of Money 29\u003c\/p\u003e \u003cp\u003e2.5 Development of Money in the United States 31\u003c\/p\u003e \u003cp\u003e2.6 Money Market Securities 37\u003c\/p\u003e \u003cp\u003e2.7 Measures of the U.S. Money Supply 38\u003c\/p\u003e \u003cp\u003e2.8 Money Supply and Economic Activity 41\u003c\/p\u003e \u003cp\u003e2.9 International Monetary System 42\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 44\u003c\/p\u003e \u003cp\u003eSummary 44\u003c\/p\u003e \u003cp\u003eKey Terms 45\u003c\/p\u003e \u003cp\u003eReview Questions 45\u003c\/p\u003e \u003cp\u003eExercises 46\u003c\/p\u003e \u003cp\u003eProblems 47\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Banks and Other Financial Institutions 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Financial Institution Problems During the 2007–2008 Financial Crisis 50\u003c\/p\u003e \u003cp\u003e3.2 Types and Roles of Financial Institutions 51\u003c\/p\u003e \u003cp\u003e3.3 Overview of the Banking System 55\u003c\/p\u003e \u003cp\u003e3.4 Historical Development of the U.S. Banking System 58\u003c\/p\u003e \u003cp\u003e3.5 Regulation of the Banking System 60\u003c\/p\u003e \u003cp\u003e3.6 Structure of Banks 65\u003c\/p\u003e \u003cp\u003e3.7 The Bank Balance Sheet 66\u003c\/p\u003e \u003cp\u003e3.8 Bank Management 71\u003c\/p\u003e \u003cp\u003e3.9 International Banking and Foreign Systems 75\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 76\u003c\/p\u003e \u003cp\u003eSummary 77\u003c\/p\u003e \u003cp\u003eKey Terms 78\u003c\/p\u003e \u003cp\u003eReview Questions 78\u003c\/p\u003e \u003cp\u003eExercises 79\u003c\/p\u003e \u003cp\u003eProblems 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Federal Reserve System 82\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 U.S. Central Bank Response to the Financial Crisis and Great Recession 83\u003c\/p\u003e \u003cp\u003e4.2 The U.S. Banking System Prior to the Fed 84\u003c\/p\u003e \u003cp\u003e4.3 Structure of the Federal Reserve System 86\u003c\/p\u003e \u003cp\u003e4.4 Monetary Policy Functions and Instruments 92\u003c\/p\u003e \u003cp\u003e4.5 Fed Supervisory and Regulatory Functions 99\u003c\/p\u003e \u003cp\u003e4.6 Fed Service Functions 101\u003c\/p\u003e \u003cp\u003e4.7 Central Banks in Other Countries 103\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 104\u003c\/p\u003e \u003cp\u003eSummary 104\u003c\/p\u003e \u003cp\u003eKey Terms 105\u003c\/p\u003e \u003cp\u003eReview Questions 105\u003c\/p\u003e \u003cp\u003eExercises 106\u003c\/p\u003e \u003cp\u003eProblems 107\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Policy Makers and the Money Supply 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 National Economic Policy Objectives 110\u003c\/p\u003e \u003cp\u003e5.2 Four Policy Maker Groups 112\u003c\/p\u003e \u003cp\u003e5.3 Government Influence on the Economy 114\u003c\/p\u003e \u003cp\u003e5.4 Treasury Cash and General Management Responsibilities 116\u003c\/p\u003e \u003cp\u003e5.5 Treasury Deficit Financing and Debt Management Responsibilities 120\u003c\/p\u003e \u003cp\u003e5.6 Changing the Money Supply 122\u003c\/p\u003e \u003cp\u003e5.7 Factors Affecting Bank Reserves 128\u003c\/p\u003e \u003cp\u003e5.8 The Monetary Base and the Money Multiplier 131\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 133\u003c\/p\u003e \u003cp\u003eSummary 133\u003c\/p\u003e \u003cp\u003eKey Terms 134\u003c\/p\u003e \u003cp\u003eReview Questions 134\u003c\/p\u003e \u003cp\u003eExercises 135\u003c\/p\u003e \u003cp\u003eProblems 135\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 International Finance and Trade 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 International Monetary System 138\u003c\/p\u003e \u003cp\u003e6.2 European Unification 140\u003c\/p\u003e \u003cp\u003e6.3 Currency Exchange Markets and Rates 142\u003c\/p\u003e \u003cp\u003e6.4 Factors that Affect Currency Exchange Rates 145\u003c\/p\u003e \u003cp\u003e6.5 Conducting Business Internationally 149\u003c\/p\u003e \u003cp\u003e6.6 Financing International Trade 151\u003c\/p\u003e \u003cp\u003e6.7 Developments in U.S. International Transactions 157\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 161\u003c\/p\u003e \u003cp\u003eSummary 161\u003c\/p\u003e \u003cp\u003eKey Terms 162\u003c\/p\u003e \u003cp\u003eReview Questions 162\u003c\/p\u003e \u003cp\u003eExercises 163\u003c\/p\u003e \u003cp\u003eProblems 164\u003c\/p\u003e \u003cp\u003e6.8 Exchange Rate Risks in Global Business 166\u003c\/p\u003e \u003cp\u003eHedging Cash Flows 167\u003c\/p\u003e \u003cp\u003eSpeculating or Taking Educated Guesses on Exchange Rate Movements 168\u003c\/p\u003e \u003cp\u003eWhere to Invest? 168\u003c\/p\u003e \u003cp\u003eSummary 169\u003c\/p\u003e \u003cp\u003eReview Questions 170\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 2 Investments\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Savings and Investment Process 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Gross Domestic Product and Capital Formation 174\u003c\/p\u003e \u003cp\u003e7.2 Federal Government Receipts and Expenditures 177\u003c\/p\u003e \u003cp\u003e7.3 Role and Major Sources of Savings 180\u003c\/p\u003e \u003cp\u003e7.4 Factors Affecting Savings 184\u003c\/p\u003e \u003cp\u003e7.5 Capital Market Securities 187\u003c\/p\u003e \u003cp\u003e7.6 Mortgage Markets 189\u003c\/p\u003e \u003cp\u003e7.7 Role of the Individual in the 2007–2008 Financial Crisis and Today 191\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 193\u003c\/p\u003e \u003cp\u003eSummary 193\u003c\/p\u003e \u003cp\u003eKey Terms 194\u003c\/p\u003e \u003cp\u003eReview Questions 194\u003c\/p\u003e \u003cp\u003eExercises 195\u003c\/p\u003e \u003cp\u003eProblems 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Interest Rates 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Supply and Demand for Loanable Funds 198\u003c\/p\u003e \u003cp\u003e8.2 Components of Market Interest Rates 203\u003c\/p\u003e \u003cp\u003e8.3 Default Risk-Free Securities:\u003c\/p\u003e \u003cp\u003e8.4 Term or Maturity Structure of Interest Rates 210\u003c\/p\u003e \u003cp\u003e8.5 Inflation Premiums and Price Movements 213\u003c\/p\u003e \u003cp\u003e8.6 Default Risk Premiums 218\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 220\u003c\/p\u003e \u003cp\u003eSummary 220\u003c\/p\u003e \u003cp\u003eKey Terms 221\u003c\/p\u003e \u003cp\u003eReview Questions 221\u003c\/p\u003e \u003cp\u003eExercises 222\u003c\/p\u003e \u003cp\u003eProblems 223\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Time Value of Money 225\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Basic Time Value Concepts 226\u003c\/p\u003e \u003cp\u003e9.2 Compounding to Determine Future Values 228\u003c\/p\u003e \u003cp\u003e9.3 Discounting to Determine Present Values 232\u003c\/p\u003e \u003cp\u003e9.4 Finding Interest Rates and Time Requirements 237\u003c\/p\u003e \u003cp\u003e9.5 Future Value of an Annuity 239\u003c\/p\u003e \u003cp\u003e9.6 Present Value of an Annuity 242\u003c\/p\u003e \u003cp\u003e9.7 Interest Rates and Time Requirements for Annuities 245\u003c\/p\u003e \u003cp\u003e9.8 Determining Periodic Annuity Payments 247\u003c\/p\u003e \u003cp\u003e9.9 More Frequent Time Intervals and the Cost of Consumer Credit 249\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 252\u003c\/p\u003e \u003cp\u003eSummary 253\u003c\/p\u003e \u003cp\u003eKey Terms 253\u003c\/p\u003e \u003cp\u003eReview Questions 254\u003c\/p\u003e \u003cp\u003eExercises 254\u003c\/p\u003e \u003cp\u003eProblems 254\u003c\/p\u003e \u003cp\u003e9.10 Annuity Due Problems 257\u003c\/p\u003e \u003cp\u003eFuture Value of an Annuity Due 257\u003c\/p\u003e \u003cp\u003ePresent Value of an Annuity Due 258\u003c\/p\u003e \u003cp\u003eInterest Rates and Time Requirements for Annuity Due Problems 259\u003c\/p\u003e \u003cp\u003eSummary 260\u003c\/p\u003e \u003cp\u003eQuestions and Problems 260\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Bonds and Stocks: Characteristics and Valuations 262\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Long-Term External Financing Sources for Businesses 263\u003c\/p\u003e \u003cp\u003e10.2 Bonds 264\u003c\/p\u003e \u003cp\u003e10.3 Different Types of Bonds 271\u003c\/p\u003e \u003cp\u003e10.4 Corporate Equity Capital 275\u003c\/p\u003e \u003cp\u003e10.5 Dividends and Stock Repurchases 279\u003c\/p\u003e \u003cp\u003e10.6 Valuation Principles 283\u003c\/p\u003e \u003cp\u003e10.7 Valuation of Bonds 286\u003c\/p\u003e \u003cp\u003e10.8 Valuation of Stocks 293\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 298\u003c\/p\u003e \u003cp\u003eSummary 298\u003c\/p\u003e \u003cp\u003eKey Terms 299\u003c\/p\u003e \u003cp\u003eReview Questions 300\u003c\/p\u003e \u003cp\u003eProblems 301\u003c\/p\u003e \u003cp\u003e10.9 Holding Period Returns 305\u003c\/p\u003e \u003cp\u003eAnnualized Rates of Return 305\u003c\/p\u003e \u003cp\u003eSummary 307\u003c\/p\u003e \u003cp\u003eProblems 307\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Securities and Markets 308\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Issuing Securities: Primary Securities Markets 309\u003c\/p\u003e \u003cp\u003e11.2 The Facebook IPO 313\u003c\/p\u003e \u003cp\u003e11.3 Other Ways to Assist Issuing Firms 316\u003c\/p\u003e \u003cp\u003e11.4 Cost of Going Public 318\u003c\/p\u003e \u003cp\u003e11.5 Investment Banking Firms: Other Functions Innovations Regulations 321\u003c\/p\u003e \u003cp\u003e11.6 Trading Securities – Secondary Securities Markets 323\u003c\/p\u003e \u003cp\u003e11.7 Security Transactions 326\u003c\/p\u003e \u003cp\u003e11.8 Over-the-Counter Market 330\u003c\/p\u003e \u003cp\u003e11.9 What Makes a Good Market? 331\u003c\/p\u003e \u003cp\u003e11.10 Security Market Indexes and Trading Foreign Securities 333\u003c\/p\u003e \u003cp\u003e11.11 Inside Information and Other Ethical Issues 336\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 338\u003c\/p\u003e \u003cp\u003eSummary 339\u003c\/p\u003e \u003cp\u003eKey Terms 340\u003c\/p\u003e \u003cp\u003eReview Questions 341\u003c\/p\u003e \u003cp\u003eProblems 341\u003c\/p\u003e \u003cp\u003e11.12 Why Do Derivatives Exist? 344\u003c\/p\u003e \u003cp\u003eFutures Contracts 345\u003c\/p\u003e \u003cp\u003eOptions 346\u003c\/p\u003e \u003cp\u003eOption Profit\/Loss Diagrams 349\u003c\/p\u003e \u003cp\u003eSummary 350\u003c\/p\u003e \u003cp\u003eKey Terms 350\u003c\/p\u003e \u003cp\u003eDiscussion Questions 350\u003c\/p\u003e \u003cp\u003eProblems 351\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Financial Return and Risk Concepts 352\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Historical Return for a Single Financial Asset 353\u003c\/p\u003e \u003cp\u003e12.2 Historical Risk Measures for a Single Financial Asset 355\u003c\/p\u003e \u003cp\u003e12.3 Where Does Risk Come from? 358\u003c\/p\u003e \u003cp\u003e12.4 Expected Measures of Return and Risk 360\u003c\/p\u003e \u003cp\u003e12.5 Historical Returns and Risk of Different Assets 364\u003c\/p\u003e \u003cp\u003e12.6 Efficient Capital Markets 365\u003c\/p\u003e \u003cp\u003e12.7 Portfolio Returns 368\u003c\/p\u003e \u003cp\u003e12.8 Variance and Standard Deviation of Return On a Portfolio 369\u003c\/p\u003e \u003cp\u003e12.9 Portfolio Risk and the Number of Investments in the Portfolio 372\u003c\/p\u003e \u003cp\u003e12.10 Capital Asset Pricing Model 374\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 378\u003c\/p\u003e \u003cp\u003eSummary 378\u003c\/p\u003e \u003cp\u003eKey Terms 379\u003c\/p\u003e \u003cp\u003eReview Questions 379\u003c\/p\u003e \u003cp\u003eProblems 380\u003c\/p\u003e \u003cp\u003e12.11A Estimating Beta 384\u003c\/p\u003e \u003cp\u003e12.11B Security Market Line 386\u003c\/p\u003e \u003cp\u003eSummary 387\u003c\/p\u003e \u003cp\u003eProblems 387\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 3 Financial Management\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Business Organization and Financial Data 391\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Starting a Business 392\u003c\/p\u003e \u003cp\u003e13.2 Forms of Business Organization in the United States 394\u003c\/p\u003e \u003cp\u003e13.3 Accounting Principles 398\u003c\/p\u003e \u003cp\u003e13.4 Income Statement 401\u003c\/p\u003e \u003cp\u003e13.5 The Balance Sheet 402\u003c\/p\u003e \u003cp\u003e13.6 Statement of Cash Flows 405\u003c\/p\u003e \u003cp\u003e13.7 Financial Statements of Different Companies 407\u003c\/p\u003e \u003cp\u003e13.8 Goal of a Firm 410\u003c\/p\u003e \u003cp\u003e13.9 Corporate Governance 414\u003c\/p\u003e \u003cp\u003e13.10 Finance in the Organization Chart 418\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 420\u003c\/p\u003e \u003cp\u003eSummary 420\u003c\/p\u003e \u003cp\u003eKey Terms 421\u003c\/p\u003e \u003cp\u003eReview Questions 421\u003c\/p\u003e \u003cp\u003eProblems 422\u003c\/p\u003e \u003cp\u003e13.11A Income Tax 427\u003c\/p\u003e \u003cp\u003e13.11B Depreciation Basics 429\u003c\/p\u003e \u003cp\u003e13.11.1 A Few Words on Depreciation Methods 430\u003c\/p\u003e \u003cp\u003eSummary 431\u003c\/p\u003e \u003cp\u003eReview Questions and Problems 431\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Financial Analysis and Long-Term Financial Planning 432\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Financial Statement Analysis 433\u003c\/p\u003e \u003cp\u003e14.2 Liquidity Ratios and Analysis 436\u003c\/p\u003e \u003cp\u003e14.3 Asset Management Ratios and Analysis 438\u003c\/p\u003e \u003cp\u003e14.4 Financial Leverage Ratios and Analysis 441\u003c\/p\u003e \u003cp\u003e14.5 Profitability Ratios and Analysis 445\u003c\/p\u003e \u003cp\u003e14.6 Market Value Ratios and Analysis 447\u003c\/p\u003e \u003cp\u003e14.7 Dupont Method of Ratio Analysis 449\u003c\/p\u003e \u003cp\u003e14.8 Long-Term Financial Planning 452\u003c\/p\u003e \u003cp\u003e14.9 Cost–Volume–Profit Analysis 455\u003c\/p\u003e \u003cp\u003e14.10 Degree of Operating Leverage 456\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 458\u003c\/p\u003e \u003cp\u003eSummary 459\u003c\/p\u003e \u003cp\u003eKey Terms 460\u003c\/p\u003e \u003cp\u003eReview Questions 460\u003c\/p\u003e \u003cp\u003eProblems 461\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Managing Working Capital 466\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Importance of Working Capital 467\u003c\/p\u003e \u003cp\u003e15.2 Operating and Cash Conversion Cycles 468\u003c\/p\u003e \u003cp\u003e15.3 Investments in Receivables Inventory and Payable Financing 472\u003c\/p\u003e \u003cp\u003e15.4 Cash Budgets 475\u003c\/p\u003e \u003cp\u003e15.5 Management of Current Assets 480\u003c\/p\u003e \u003cp\u003e15.6 Getting – and Keeping – the Cash 488\u003c\/p\u003e \u003cp\u003e15.7 Accounts Receivable Management 490\u003c\/p\u003e \u003cp\u003e15.8 Inventory Management 494\u003c\/p\u003e \u003cp\u003e15.9 Technology and Working Capital Management 495\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 497\u003c\/p\u003e \u003cp\u003eSummary 497\u003c\/p\u003e \u003cp\u003eKey Terms 498\u003c\/p\u003e \u003cp\u003eReview Questions 498\u003c\/p\u003e \u003cp\u003eProblems 499\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Short-Term Business Financing 503\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Strategies for Financing Working Capital 504\u003c\/p\u003e \u003cp\u003e16.2 Factors Affecting Short-Term Financing 507\u003c\/p\u003e \u003cp\u003e16.3 Providers of Short-Term Financing 512\u003c\/p\u003e \u003cp\u003e16.4 Nonbank Short-Term Financing Sources 516\u003c\/p\u003e \u003cp\u003e16.5 Additional Varieties of Short-Term Financing 521\u003c\/p\u003e \u003cp\u003e16.6 Inventory Financing and Other Secured Loans 525\u003c\/p\u003e \u003cp\u003e16.7 The Cost of Short-Term Financing 527\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 528\u003c\/p\u003e \u003cp\u003eSummary 528\u003c\/p\u003e \u003cp\u003eKey Terms 529\u003c\/p\u003e \u003cp\u003eReview Questions 530\u003c\/p\u003e \u003cp\u003eProblems 530\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Capital Budgeting Analysis 533\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 Mission, Vision, and Capital Budgeting 534\u003c\/p\u003e \u003cp\u003e17.2 Capital Budgeting Process 537\u003c\/p\u003e \u003cp\u003e17.3 Capital Budgeting Techniques – Net Present Value 540\u003c\/p\u003e \u003cp\u003e17.4 Capital Budgeting Techniques – Internal Rate of Return 543\u003c\/p\u003e \u003cp\u003e17.5 Capital Budgeting Techniques – Modified Internal Rate of Return 547\u003c\/p\u003e \u003cp\u003e17.6 Capital Budgeting Techniques – Profitability Index 549\u003c\/p\u003e \u003cp\u003e17.7 Capital Budgeting Techniques – Payback Period 549\u003c\/p\u003e \u003cp\u003e17.8 Conflicts Between Discounted Cash Flow Techniques 550\u003c\/p\u003e \u003cp\u003e17.9 Estimating Project Cash Flows 552\u003c\/p\u003e \u003cp\u003e17.10 Keeping Managers Honest 558\u003c\/p\u003e \u003cp\u003e17.11 Risk-Related Considerations 559\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 561\u003c\/p\u003e \u003cp\u003eSummary 561\u003c\/p\u003e \u003cp\u003eKey Terms 563\u003c\/p\u003e \u003cp\u003eReview Questions 563\u003c\/p\u003e \u003cp\u003eProblems 564\u003c\/p\u003e \u003cp\u003e17.12 Project Stages and Cash Flow Estimation 567\u003c\/p\u003e \u003cp\u003eInitial Outlay 567\u003c\/p\u003e \u003cp\u003eCash Flows During the Project’s Operating Life 568\u003c\/p\u003e \u003cp\u003eSalvage Value and NWC Recovery at Project Termination 568\u003c\/p\u003e \u003cp\u003e17.13 Applications 569\u003c\/p\u003e \u003cp\u003eCash Flow Estimation for a Revenue Expanding Project 569\u003c\/p\u003e \u003cp\u003eCash Flow Estimation for a Cost-Saving Project 571\u003c\/p\u003e \u003cp\u003eSetting a Bid Price 574\u003c\/p\u003e \u003cp\u003eSummary 576\u003c\/p\u003e \u003cp\u003eReview Questions 576\u003c\/p\u003e \u003cp\u003eProblems 576\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Capital Structure and the Cost of Capital 578\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Why Choose a Capital Structure? 579\u003c\/p\u003e \u003cp\u003e18.2 Required Rate of Return and the Cost of Capital 582\u003c\/p\u003e \u003cp\u003e18.3 Cost of Capital 583\u003c\/p\u003e \u003cp\u003e18.4 Weighted Average Cost of Capital 587\u003c\/p\u003e \u003cp\u003e18.5 Planning Growth Rates 592\u003c\/p\u003e \u003cp\u003e18.6 EBIT\/eps Analysis 594\u003c\/p\u003e \u003cp\u003e18.7 Combined Operating and Financial Leverage Effects 597\u003c\/p\u003e \u003cp\u003e18.8 Insights from Theory and Practice 601\u003c\/p\u003e \u003cp\u003eApplying Finance To. . . 607\u003c\/p\u003e \u003cp\u003eSummary 607\u003c\/p\u003e \u003cp\u003eKey Terms 608\u003c\/p\u003e \u003cp\u003eReview Questions 609\u003c\/p\u003e \u003cp\u003eProblems 610\u003c\/p\u003e \u003cp\u003eAppendix A-1\u003c\/p\u003e \u003cp\u003eGlossary G-1\u003c\/p\u003e \u003cp\u003eIndex I-1\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989459878117,"sku":"NP9781119561170","price":146.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119561170.jpg?v=1761784187","url":"https:\/\/k12savings.com\/products\/introduction-to-finance-isbn-9781119561170","provider":"K12savings","version":"1.0","type":"link"}