MANAGERIAL FINANCE TWELFTH EDITION LAWRENCE J. GITMAN SAN DIEGO STATE UNIVERSITY PEARSON Prentice Hall Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid Mexico City Munich Paris Cape Town Hong Kong Montreal Contents Preface xxxi Revised Content xxxiii Supplements to the Twelfth Edition Acknowledgments To the Student xxxvii xl xliii Part One Introduction to Managerial Finance 1 Chapter 1 The Role and Environment of Managerial Finance page 2 1.1 Finance and Business
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Case Studies in Finance: Managing for Corporate Value Creation Fourth Edition July‚ 2002 Robert F. Bruner Distinguished Professor of Business Administration Darden Graduate School of Business Administration University of Virginia Post Office Box 6550 Charlottesville‚ Virginia 22906 Email: brunerr@virginia.edu Web site: http://faculty.darden.edu/brunerb/ ABSTRACT: This book presents 46 case studies in finance‚ targeted toward upper-level undergraduates and introductory and intermediate-level MBA
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2.1 Definition of key terms Financing studies and addresses the ways in which individuals‚ businesses and organizations raise‚ allocate and use monetary resources over time‚ taking into account the risks entailed in their projects. Generally finance may thus incorporate any of the following: the study of money and other assets‚ the management of those assets and profiling and managing project risks. An entrepreneur is an individual who accepts some sort of risk usually financial in the pursuit
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MM Propositions:In a world with no taxes‚ no transaction costs‚ and no costs of financial distress‚ is the following statement true‚ false‚ or uncertain? Moderate borrowing will not increase the required return on a firm’s equity. Explain. MM Proposition II states that higher debt does not affect cost of capital of a firm. The reason is that the lower cost of debt is offset by a greater cost of equity‚ which means investors demand a higher return on equity as a result of the higher risk coming
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Double taxation The same income getting taxed multiple times. Maximizing shareholder value Management principle that implies that the ultimate measure of a company’s success is the extent to which it enriches its shareholders. Initial Public Offering Stock Launch – stock in a company is sold to the general public for the first time Sole Proprietorship‚ Partnership‚ Corporation‚ LLC‚ Subchapter S Corp (Pros and Cons of each) Sole Proprietorship Pros Simplicity and ease of operation Cons
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1. For our course‚ "Finance" means the _____ and "Business Finance" means the _____. A. management of money invested in business assets expected to increase in market value or otherwise pay a fair return; management of money invested in assets expected to increase in market value or pay a fair return. B. study and application of Accounting principles as they pertain to any organization; study and application of Accounting principles as they pertain to a business. C. management of money invested
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assumptions‚ without any transparency‚ into a single number: the multiple. Many companies require over ten years of value-creating cash flows to justify their stock prices. Ideally‚ the explicit forecast period should capture at least one-third of corporate value with clear assumptions about projected financial performance. While the range of possible outcomes certainly widens with time‚ we have better analytical tools to deal with an ambiguous future than to place an uncertain multiple on a more certain
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CHAPTER 1: INTRODUCTION TO CORPORATE FINANCE Contents 1. Scope of financial management 5. Company stakeholders 2. Forms of business organization 6. Management‐Shareholders’ Relationship 3. The objectives of the firm 7. The Audit 4. Regulatory frameworks for companies 8. Public Sector Organisation Learning Outcomes When you have read and understand this chapter
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Introduction: Finance is the life-blood of all business activities. Finance is needed not only for establishing a business enterprise‚ but it is also needed to keep it alive and also to see it growing. Every business enterprise needs two types of capital‚ viz.‚ fixed or long-term capital and working or short-term capital. Source of Finance: There are several sources which a business enterprise company can use for raising the required amount of capital. What sources and methods the company will
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Main characteristics of project finance Project finance is a form of long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. In most cases‚ a project financing structure involves a number of equity investors‚ the sponsors‚ as well as a group of banks or other lending institutions that provide loans to the operation. The loans are usually non-recourse loans‚ which are secured by the
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