Modern Corporate Finance and PH FinCoach Center

Emphasis on corporate finance activities and how decisions and strategies relate to other functions of the firm, including sales, advertising, marketing, production, etc. Throughout the text, the story of financial analysis and reasoning are applied to problems faced by executives in marketing, operations, and personnel from both a domestic and international perspective. The text's focal theme is on value creation and the role of corporate finance in facilitating this process.

Features

• Brief text—15 chapters with 8 additional on the web—The subject matter of this book is focused on those subjects in corporate finance that are critical to an understanding of finance.
  —Focused textbook coverage is a plus for programs 10-14 weeks long which require a brief book that concentrates on the key topics in corporate finance.
  —A Website with additional chapters gives instructors a broader array of topic chapters to fit with syllabi.
  —The menu of further topics on the Website allows instructors to customize a text based on their individual course needs.
• Additional Topics—Have been prepared for this text and may be copied from the text's homepage found at: www.prenhall.com/financecenter
  —Topic A - Managing Cash and
  Marketable Securities
  —Topic B - Managing Accounts
  Receivable
  —Topic C - Managing Inventories
  —Topic D - Convertible Securities and
  Warrants
  —Topic E - Lease Financing
  —Topic F - International Financial
  Management
  —Topic G - Bankruptcy and
  Reorganization
  —Topic H - Hedging Corporate Risk
  Exposure
• Emphasis on value creation integrated throughout the text—Focuses on how the financial manager can add value to the firm and looks at activities that financial manager's do that inter-relate to other functions within the company to create value.
  —Enables students to connect the strategic goal of creating competitive advantage and the financial goal of creating shareholder value.
  —Shows students the role of the financial manager is to understand the intricacies of the modern financial marketplace and use this knowledge to help guide the firm's activities.
  —Contains a unique chapter on how companies create value—including value-based analysis and corporate restructuring—as well as the links between return on investment, required return on capital invested, and the pricing of stocks. It also deals with issues of executive compensation from a financial standpoint (Chapter 11).
  —Features a discussion of how investment decisions can help create competitive advantage, and thereby enhance shareholder value (Chapter 9).
  —Shows the linkages between corporate growth strategies and shareholder value creation, and indicates when such growth can actually dissipate value (Chapter 5).
• Practical approach—Shows students why theories make sense, and how to use them to solve problems by citing examples from real corporations like Southwest airlines, Time Warner , Walt Disney, etc.
• • The book relates the subject matter to material students are already familiar with or have learned in previous chapters, making it less intimidating and more interesting. Basic intuition is emphasized throughout.
• Numerous applications of finance principles—Illustrated through real-world examples and vignettes are intricately woven into the text and not as separate boxed features.
• • Promotes interest, and an understanding of basic theory for students in context, so that they can use financial analysis and reasoning to solve financial problems and make financial decisions.
• Application of financial analysis to non-financial problems—Highlights why non-finance majors should care about the topics covered.
• • Supplies students with a broad application to general management, and demonstrates the financial implications of issues dealt with by non-financial executives.
• Unique chapter on strategy and financial management—Deals with the issue of executive compensation from a financial standpoint.
• • Familiarizes students with the connections between return on investments, required return on capital invested, and the pricing of stocks.
• Integrated coverage of international topics.
  —Allows students to view finance from a global perspective and understand issues related to the integration of domestic and global financial management.
  —Features a detailed presentation of financing patterns of companies around the world and discusses the evolution of these financing patterns, particularly the rise of securitization, that helps to put financing options and patterns into perspective (Chapter 12).
• Numerous chapter-end questions and problems.
• • More problems at the end of chapters than mostly any other Corporate Finance text. Problems are designed to provide students with practical insights into the types of decisions faced by financial executives, and offer practice in applying financial concepts and theories.
• Comprehensive financial statement analysis—Provides a unique discussion of the qualitative aspects of corporate control.
• • Shows students how to conduct a detailed financial analysis, and points out the numerous pitfalls involved.
• Detailed discussion of estimating project cash flows—Includes incremental versus total cash flows; the effects of inflation on cash flows; and the valuation of growth options.
• • Presents students with hands-on experience to help them gain an appreciation for the real-world difficulties in valuing projects.
• Qualitative factors that determine financial strategy.
• • Concentrates on the costs of financial distress and the value of financial flexibility, enabling students to put the design of financial packages into perspective.

Contents

1. Introduction.
2. Evaluating a Firm's Financial Condition.
3. Financial Planning and Funds Forecasting.
4. Foundations of Valuation: Time Value of Money.
5. Bond and Stock Valuation.
6. Risk and Value.
7. Options in Corporate Finance.
8. Evaluation of Investment Projects.
9. The Art and Science of Evaluating Project Cash Flows.
10. Establishing Required Rates of Return.
11. Creating Value for Shareholders.
12. Global Financial Markets and Long-Term Financing.
13. How Companies Raise Long-Term Capital.
14. Establishing a Target Capital Structure.
15. Dividend Policy.

Additional Topics have been prepared for this text and may be copied from the text's homepage found at: www.prenhall.com/financecenter