Principles of finance /

"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 e...

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Bibliographic Details
Main Authors: Dahlquist, Julie R., 1962- (Author), Knight, Rainford (Author)
Format: Electronic eBook
Language:English
Published: Houston, Texas : OpenStax, Rice University, 2022.
Series:Open textbook library.
Subjects:
Online Access:CONNECT

MARC

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100 1 |a Dahlquist, Julie R.,  |d 1962-  |e author. 
245 1 0 |a Principles of finance /  |c Julie Dahlquist, Rainford Knight. 
264 1 |a Houston, Texas :  |b OpenStax, Rice University,  |c 2022. 
300 |a 1 online resource (629 pages) 
336 |a text  |b txt  |2 rdacontent 
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490 0 |a Open textbook library. 
504 |a Includes bibliographical references and index. 
520 |a "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."--OpenStax. 
588 |a Title from OpenStax ; viewed on March 24, 2023. 
505 0 |a 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 -- Why it Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Video Activity -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 4. Accrual Accounting Process -- Why It Matters -- 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? -- Summary -- Key Terms -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 5. Financial Statements -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 6. Measures of Financial Health -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 7. Time Value of Money I: Single Payment Value -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 8. Time Value of Money II: Equal Multiple Payments -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Problems -- Video Activity -- Chapter 9. Time Value of Money III: Unequal Multiple Payments Values -- Why It Matters -- 9.1 Timing of Cash Flows -- 9.2 Unequal Payments Using a Financial Calculator or Microsoft Excel -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 10. Bonds and Bond Valuation -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 11. Stocks and Stock Valuation -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 12. Historical Performance of US Markets -- Why It Matters -- 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 -- Summary -- Key Terms -- Multiple Choice -- Review Questions -- Video Activity -- Chapter 13. Statistical Analysis in Finance -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 14. Regression Analysis in Finance -- Why It Matters -- 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 -- Summary -- Key Terms -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 15. How to Think about Investing -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 16. How Companies Think about Investing -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 17. How Firms Raise Capital -- Why It Matters -- 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 -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 18. Financial Forecasting -- Why It Matters -- 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 -- Summary -- Key Terms -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Chapter 19. The Importance of Trade Credit and Working Capital in Planning -- Why It Matters -- 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 -- Summary -- Key Terms -- Multiple Choice -- Review Questions -- Video Activity -- Chapter 20. Risk management and the Financial Manager -- Why It Matters -- 20.1 The Importance of Risk Management -- 20.2 Commodity Price Risk -- 20.3 Exchange Rates and Risk -- 20.4 Interest Rate Risk -- Summary -- Key Terms -- CFA Institute -- Multiple Choice -- Review Questions -- Problems -- Video Activity -- Index 
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