Selamat datang di toko Buku Online kami Buku Diskon,Murah Ajibayustore

Jumat, 25 Maret 2016

Corporate Finance,Tenth Edition.Asia Global Edition,Stephen A.Ross

  Judul Buku : Corporate Finance – Asia Global Edition

Judul Buku:Corporate Finance – Asia Global Edition
Pengarang:Stephen A. Ross – Randolph W. Westerfield – Jeffrey Jaffe – Joseph Lim – Ruth Tan – Helen Wong
Penerbit:Mc Graw Hill Education
Cetakan:Asia Global Edition
Tahun Terbit:2015
Bahasa:Inggris
Jumlah Halaman:1060
Kertas Isi:HVS
Cover:Soft
Ukuran:20 x 26
Berat:1800
Kondisi:Baru
Harga: Rp435,000


Stock:1


Corporate Finance – Asia Global Edition
Pengarang : Stephen A. Ross – Randolph W. Westerfield – Jeffrey Jaffe – Joseph Lim – Ruth Tan – Helen Wong
Penerbit : Mc Graw Hill Education


Contents

PART I Overview
CHAPTER I
Introduction to Corporate Finance          I
1.1 What Is Corporate Finance?                  I
The Balance Sheet Model of the Firm         I
The Financial Manager                                 3
1.2 The Corporate Firm                                4
The Sole Proprietorship                                4
The Partnership                                            4
The Corporation                                           5
A Corporation by Another Name ...            6
1.3 The Importance of Cash Flows              8
1.4 The Goal of Financial Management       I I
Possible Goals                                              I I
The Goal of Financial Management                 12
A More General Goal                                              12
1.5 The Agency Problem and Control
of the Corporation                                                    13
Agency Relationships                                             13
Management Goals                                                   13
Do Managers Act in the Stockholders' Interests? 14
Stakeholders                                                                15
1.6 Regulation                                                             16
Sarbanes-Oxley                                                          16
Corporate Governance                                            17
Summary and Conclusions                                   17
Concept Questions                                                   18

CHAPTER 2
Financial Statements and Cash Flow     20
2.1 The Balance Sheet                                            20
Liquidity                                                                        21
Debt versus Equity                                      22
Value versus Cost                                        22
2.2 The Income Statement                                    23
Generally Accepted Accounting Principles 24
Noncash Items                                                            25
Time and Costs                                            25
2.3 Taxes                                                      26
Corporate Tax Rates                                    27
Average versus Marginal Tax Rates            27
2.4 Net Working Capital                              29
2.5 Financial Cash Flow                              29
2.6 The Accounting Statement of
Cash Flows                                                33
Cash Flow from Operating Activities       33
Cash Flow from Investing Activities        34
Cash Flow from Financing Activities        34
2.7 Cash Flow Management                      35
Summary and Conclusions                        36
Concept Questions                                    36
Questions and Problems                            37
Excel Master It!                                         42
Mini Case: Beauty Community Public
Company Limited                                      43

CHAPTER 3
Financial Statements Analysis and Financial Models        45
3.1 Financial Statements Analysis             45
Standardizing Statements                          46
Common-Size Balance Sheets                   46
Common-Size Income Statements            47
3.2 Ratio Analysis                                     49
Short-Term Solvency or Liquidity Measures  50
Long-Term Solvency Measures                 51
Asset Management or Turnover Measures      53
Profitability Measures                         55
Market Value Measures                       56
3.3 The DuPont Identity                           59
A Closer Look at ROE                              59
Problems with Financial Statement Analysis  61
3.4 Financial Models                           62
A Simple Financial Planning Model        62
The Percentage of Sales Approach            64
3.5 External Financing and Growth
EFN and Growth                               69
Financial Policy and Growth                     71
A Note about Sustainable Growth Rate
Calculations                                               75
3.6 Some Caveats Regarding Financial
Planning Models                                76
Summary and Conclusions                77
Concept Questions                        77
Questions and Problems                      79
Excel Master It!                                         84
Mini Case: Beauty Community Public
Company Limited Part 2                  86

PART II Valuation and Capital Budgeting
CHAPTER 4
Discounted Cash Flow Valuation                 88
4.1 Valuation: The One-Period Case                88
4.2 The Multiperiod Case                               92
Future Value and Compounding                     92
The Power of Compounding: A Digression       95
Present Value and Discounting                       96
Finding the Number of Periods                       99
The Algebraic Formula                                  103
4.3 Compounding Periods                                       103
Distinction between Stated Annual Interest
Rate and Effective Annual Rate                      105
Compounding over Many Years                     106
Continuous Compounding                             106
4.4 Simplifications                                         108
Perpetuity                                                    108
Growing Perpetuity                                       110
Annuity                                                                        III
Growing Annuity                                         118
4.5 Loan Amortization                                   119
4.6 What Is a Firm Worth?                                 123
4.7 Another Reason Why APR May Differ
from EAR                                                   125
Summary and Conclusions                             127
Concept Questions                                        128
Questions and Problems                                 129
Excel Master It!                                            139
Mini Case: The MBA Decision                       139
Appendix 4A: Net Present Value: First Principles
of Finance                                                   140
Appendix 48: Using Financial Calculators            140

CHAPTER  5
Net Present Value and Other Investment Rules           141
5.1 Why Use Net Present Value?                    141
5.2 The Payback Period Method                     144
Defining the Rule                                         144
Problems with the Payback Method                 145
Managerial Perspective                                  146
Summary of Payback                                                147
5.3 The Discounted Payback Period Method 147
5.4 The Internal Rate of Return                       148
5.5 Problems with the IRR Approach                   151
Definition of Independent and Mutually
Exclusive Projects                                                       151
Two General Problems Affecting Both
Independent and Mutually Exclusive Projects
151 Problems Specific to Mutually Exclusive Projects 155
Redeeming Qualities of 1RR                        160
A Test                                                       160
5.6 The Profitability index                             161
Calculation of Profitability Index                   161
5.7 The Practice of Capital Budgeting             163
Summary and Conclusions                           165
Concept Questions                                      166
Questions and Problems                               168
Excel Master It!                                          175
Mini Case: Hutti Gold Mines Limited            176

CHAPTER 6
Making Capital Investment Decisions     177
6.1 Incremental Cash Flows: The Key
to Capital Budgeting                                   177
Cash Flows—Not Accounting Income          177
Sunk Costs                                                178
Opportunity Costs                                       178
Side Effects                                               179
Allocated Costs                                          179
6.2 The Baldwin Company; An Example 180
An Analysis of The Project                           183
Which Set of Books?                                   185
A Note About Net Working Capital              185
Interest Expense                                         186
6.3 Inflation and Capital Budgeting               187
Interest Rates and Inflation                           187
Cash Flow and Inflation                               188
Discounting: Nominal or Real?                      189
6.4 Alternative Definitions of Operating
Cash Flow                                                 191
The Top-Down Approach                            192
The Bottom-Up Approach                           192
The Tax Shield Approach                             193
Conclusion                                                 194
6.5 Some Special Cases of Discounted
Cash Flow Analysis                                     194
Evaluating Cost-Cutting Proposals                 194
Setting The Bid Price                                   196
Investments of Unequal Lives: The Equivalent
Annual Cost Method                                   198
Summary and Conclusions                           200
Concept Questions                                      200
Questions and Problems                               202
Excel Master It!                                          210
Mini Case: Goodtime Rubber Co. Ltd.           211

CHAPTER 7
Risk Analysis, Real Options, and Capital Budgeting  212
7.1 Sensitivity Analysis, Scenario Analysis,
and Break-Even Analysis                             212
Sensitivity Analysis and Scenario Analysis      212
Break-Even Analysis                                   216
7.2 Monte Carlo Simulation                    220
Step 1: Specify the Basic Model             220
Step 2: Specify a Distribution for Each
Variable in the Model                              220
Step 3: The Computer Draws One Outcome 223
Step 4: Repeat the Procedure                  223
Step 5: Calculate NPV                            224
7.3 Real Options                                      224
The Option to Expand                             225
The Option to Abandon                          226
Timing Options                                        228
7.4 Decision Trees                                   229
Summary and Conclusions                      231
Concept Questions                                  232
Questions and Problems                          232
Excel Master Itl                                       239
Mini Case: Allied Lumber                       240

CHAPTER 8
Interest Rates and Bond Valuation    242
8.1 Bonds and Bond Valuation              242
Bond Features and Prices                        242
Bond Values and Yields                         243
Interest Rate Risk                                    246
Finding the Yield to Maturity: More Trial
and Error                                                 248
Zero Coupon Bonds                                250
8.2 Government and Corporate Bonds   252
Government Bonds                                 252
Corporate Bonds                                     253
Bond Ratings                                          255
Asian Bond Rating Agencies                  256
8.3 Bond Markets                                    256
How Bonds Are Bought and Sold          257
Bond Price Reporting                              258
A Note on Bond Price Quotes                261
8.4 Inflation and Interest Rates              261
Real versus Nominal Rates                      261
Inflation Risk and Inflation-Linked Bonds    263
The Fisher Effect                                     264
8.5 Determinants of Bond Yields           265
The Term Structure of Interest Rates      265
Bond Yields and the Yield Curve: Putting
It All Together                                         268
Conclusion                                               269
Summary and Conclusions                      269
Concept Questions                                  270
Questions and Problems                          271
Excel Master It!                                       274
Mini Case: Singapore Airlines Limited   275

CHAPTER 9
Stock Valuation                                    277
9.1 The Present Value of Common Stocks 277
Dividends versus Capital Gains             277
Valuation of Different Types of Stocks
278 9.2 Estimates of Parameters in the
Dividend Discount Model                     282
Where Does Come From?                   282
Where Does Come From?                   284
A Healthy Sense of Skepticism              285
Dividends or Earnings: Which to Discount?  286
The No-Dividend Firm                           286
9.3 Growth Opportunities                      287
NPVGOs of Real-World Companies     289
Growth in Earnings and Dividends
versus Growth Opportunities              290
9.4 Comparables                                     291
Price-to-Earnings Ratio                          291
Enterprise Value Ratios                    294
9.5 Valuing the Entire Firm                296
9.6 The Stock Markets                      297
Dealers and Brokers                         297
Organization of the NYSE                298
NASDAQ Operations                      300
Stock Market Reporting                         301
Summary and Conclusions                 302
Concept Questions                          302
Questions and Problems                         303
Excel Master It!                              308
Mini Case: West Coast Yachts            309

PART III Risk
CHAPTER 10
Risk and Return: Lessons from Market History        310
10.1 Returns                                  310
Dollar Returns                                310
Percentage Returns                          312
10.2 Holding Period Returns              314
10.3 Return Statistics                             317
10.4 Average Stock Returns and Risk-Free
Returns                                         322
10.5 Risk Statistics                      322
Variance                                                 323
Normal Distribution and Its Implications
for Standard Deviation                     325
10.6 More on Average Returns           325
Arithmetic versus Geometric Averages 326
Calculating Geometric Average Returns 326
Arithmetic Average Return or Geometric
Average Return?                                      328
10.7 The U.S. Equity Risk Premium:
Historical and International
Perspectives                                              329
10.8 2008: A Year of Financial Crisis      332
Summary and Conclusions                       334
Concept Questions                                   334
Questions and Problems                           335
Excel Master It!                                       338
Mini Case: Investment of Pension Money      339

CHAPTER 11
Return and Risk: The Capital Asset Pricing Model (CAPM)         341
11.1 Individual Securities                                341
11.2 Expected Return, Variance, and Covariance      342
Expected Return and Variance                342
Covariance and Correlation                     344
11.3 The Return and Risk for Portfolios  347
The Expected Return on a Portfolio        347
Variance and Standard Deviation of a Portfolio 348
11.4 The Efficient Set for Two Assets    351
11.5 The Efficient Set for Many Securities 356
Variance and Standard Deviation in a Portfolio of Many Assets      357
11.6 Diversification                                  359
The Anticipated and Unanticipated Components of News   359
Risk: Systematic and Unsystematic         359
The Essence of Diversification                360
11.7 Riskless Borrowing and Lending     362
The Optimal Portfolio                              364
11.8 Market Equilibrium                          36S
Definition of the Market Equilibrium Portfolio             365
Definition of Risk When Investors Hold the Market Portfolio          366
The Formula for Beta                               368
A Test                                                                         369
11.9 Relationship between Risk and Expected Return (CAPM)       370
Expected Return on Market                     370
Expected Return on Individual Security 371
Summary and Conclusions                       373
Concept Questions                                   374
Questions and Problems                           375
Excel Master It!                                                    381
Mini Case: Investment of Pension Money Part 2 382
Appendix I IA: Is Beta Dead?                383

CHAPTER 12
An Alternative View of Risk and Return: The Arbitrage Pricing Theory          384
12.1 Introduction                                    384
12.2 Systematic Risk and Betas             384
12.3 Portfolios and Factor Models         387
Portfolios and Diversification                389
12.4 Betas, Arbitrage, and Expected Returns 392
The Linear Relationship                          392
The Market Portfolio and the Single Factor   393
12.5 The Capital Asset Pricing Model and the Arbitrage Pricing Theory      394
Differences in Pedagogy                        394
Differences in Application                     394
12.6 Empirical Approaches to Asset Pricing  396
Empirical Models                                    396
Style Portfolios                                       397
Summary and Conclusions                     399
Concept Questions                                 400
Questions and Problems                         401
Excel Master It!                                      405
Mini Case: Risk and Return                   405

CHAPTER 13
Risk, Cost of Capital, and Valuation  407
13.1 The Cost of Capital                        407
13.2 Estimating the Cost of Equity Capital with the CAPM 408
The Risk-Free Rate                                 411
Market Risk Premium                             411
13.3 Estimation of Beta                          412
Real-World Betas                                   413
Stability of Beta                                     413
Using an Industry Beta                          414
13.4 Determinants of Beta                     416
Cyclicality of Revenues                          416
Operating Leverage                                417
Financial Leverage and Beta                  417
13.5 The Dividend Discount Model Approach          418
Comparison of DDM and CAPM          419
13.6 Cost of Capital for Divisions and Projects         420
13.7 Cost of Fixed Income Securities    422
Cost of Debt                                           422
Cost of Preferred Stock                          423
13.8 The Weighted Average Cost of Capital 424
13.9 Valuation with R WACC            425
Project Evaluation and the RwAcc                 425
Firm Valuation with the P.11             426
13.10 Estimating Eastman Chemical's Cost of Capital          429
13.11 Flotation Costs and the Weighted Average Cost of Capital    432
The Basic Approach                                432
Flotation Costs and NPV                       433
Internal Equity and Flotation Costs        434
Summary and Conclusions                     435
Concept Questions                                  435
Questions and Problems                         437
Mini Case: Newcrest Mining Limited (NCM) 441
Appendix 13A: Economic Value Added and the Measurement of Financial Performance       442
PART IV Capital Structure and Dividend Policy

CHAPTER 14
Efficient Capital Markets and Behavioral Challenges      443
14.1 Can Financing Decisions Create Value? 443
14.2 A Description of Efficient Capital Markets 445
Foundations of Market Efficiency         447
14.3 The Different Types of Efficiency 448
The Weak Form                                      448
The Semistrong and Strong Forms         450
Some Common Misconceptions about the Efficient Market Hypothesis       451
14.4 The Evidence                                  452
The Weak Form                                      452
The Semistrong Form                              454
The Strong Form                                     458
14.5 The Behavioral Challenge to Market Efficiency            458
14.6 Empirical Challenges to Market Efficiency 460
14.7 Reviewing the Differences             466
14.8 Implications for Corporate Finance        467
  1. Accounting Choices, Financial Choices, and Market Efficiency 468
  2. The Timing Decision 469
  3. Speculation and Efficient Markets 470
  4. Information in Market Prices 472
Summary and Conclusions                     474
Concept Questions                                  475
Questions and Problems                         479
Mini Case: Investment of Pension Money Part 3 480

CHAPTER 15
Long-Term Financing: An Introduction 483
ISA Some Features of Common and Preferred Stocks          483
Common Stock Features                         483
Preferred Stock Features                        486
15.2 Corporate Long-Term Debt            487
is It Debt or Equity?                                488
Long-Term Debt: The Basics                  488
The Indenture                                         490
Corporate Bonds In Asia                        493
I5.3 Some Different Types of Bonds     493
Floating-Rate Bonds                               493
Other Types of Bonds                            494
15.4 Bank Loans                                     494
15.5 International Bonds                        495
15.6 Patterns of Financing                      496
15.7 Recent Trends in Capital Structure 498
Which Are Best: Book or Market Values?       500
Summary and Conclusions                     Soo
Concept Questions                                  500
Questions and Problems                         501
Mini Case: Corporate Debts                   503

CHAPTER 16
Capital Structure: Basic Concepts      505
16.1 The Capital Structure Question and the Pie Theory       505
16.2 Maximizing Firm Value versus Maximizing Stockholder Interests        506
16.3 Financial Leverage and Firm Value: An Example          508
Leverage and Returns to Shareholders   508
The Choice between Debt and Equity     510
A Key Assumption                                 512
16.4 Modigliani and Miller: Proposition 11
(No Taxes)                                              512
Risk to Equityholders Rises with Leverage      512
Proposition II: Required Return to
Equityholders Rises with Leverage        513
MM: An Interpretation                           519
16.5 Taxes                                               521
The Basic Insight                                    521
Present Value of the Tax Shield              523
Value of the Levered Firm                      523
Expected Return and Leverage under Corporate Taxes         525
The Weighted Average Cost of Capital, R.,C' and Corporate Taxes    527
Stock Price and Leverage under Corporate Taxes 528
Summary and Conclusions                     530
Concept Questions                                  530
Questions and Problems                           531
Mini Case: Sinher Technology Inc           536

CHAPTER 17
Capital Structure: Limits to the Use of Debt          538
17.1 Costs of Financial Distress               539
Bankruptcy Risk or Bankruptcy Cost?    539
17.2 Description of financial',Distress Costs S41
Direct Costs of Financial Distress: Legal and Administrative Costs of Liquidation or
Reorganization                                         541
Indirect Costs of Financial Distress         542
Agency Costs                                           543
17.3 Can Costs of Debt Be Reduced?     546
Protective Covenants                               546
Consolidation of Debt                             547
17.4 Integration of Tax Effects and FinancialDistress Costs 548
Pie Again                                                  549
17.5 Signaling                                          550
17.6 Shirking, Perquisites, and Bad Investments: A Note on Agency Cost of Equity          552
Effect of Agency Costs of Equity on Debt–Equity Financing          554
Free Cash Flow                                        554
17.7 The Pecking-Order Theory               555
Rules of the Pecking Order                      556
Implications                                              557
17.8 Personal Taxes                                  558
The Basics of Personal Taxes                   558
The Effect of Personal Taxes on Capital Structure    558
17.9 How Firms Establish Capital Structure 560
Summary and Conclusions                       565
Concept Questions                                   565
Questions and Problems                           566
Mini Case: Food Empire Holdings Limited   569
Appendix 17A: Some Useful Formulas of Financial Structure          570
Appendix 178, The Miller Model and the Graduated Income Tax    570

CHAPTER 18
Valuation and Capital Budgeting for the levered Firm         571
18.1 Adjusted Present Value Approach  571
18.2 Flow to Equity Approach                573
Step 1: Calculating Levered Cash Flow (LCF)          573
Step 2: Calculating Rs                              574
Step 3: Valuation                                     574
18.3 Weighted Average Cost of Capital Method       574
18.4 A Comparison of the APV, FTE, and WACC Approaches       575
A Suggested Guideline                           576
Alternative application of target debt to market value ratio   578
APV Approach                                       579
FTE Approach                                         579
WACC Approach                                   580
18.5 Valuation When the Discount Rate Must Be Estimated            580
18.6 APV Example                                 582
18.7 Beta and Leverage                          585
The Project Is Not Scale Enhancing       587
Summary and Conclusions                      588
Concept Questions                                  588
Questions and Problems                          589
Mini Case: HCP Holdings Inc.               593
Appendix I 8A: The Adjusted Present Value Approach to Valuing Leveraged
Buyouts                                                   594

CHAPTER 19
Dividends and Other Payouts              595
19.1 Different Types of Payouts             595
19.2 Standard Method of Cash Dividend Payment   596
19.3 The Benchmark Case: An Illustration of the Irrelevance of Dividend Policy          598
Current Policy: Dividends Set Equal to Cash Flow   598
Alternative Policy: Initial Dividend Is Greater Than Cash Flow       599
The Indifference Proposition                  599
Homemade Dividends                            599
A Test                                                      601
Dividends and Investment Policy           601
19.4 Repurchase of Stock 602
Dividend versus Repurchase: Conceptual Example 603
ividends versus Repurchases: Real-World Considerations     604
19.5 Personal Taxes, Dividends, and Stock Repurchases      605
Firms without Sufficient Cash to Pay a Dividend 605
Firms with Sufficient Cash to Pay a Dividend           607
Summary of Personal Taxes                    609
19.6 Real-World Factors Favoring a High-Dividend Policy  609
Desire for Current Income                      610
Behavioral Finance                                  610
Agency Costs                                          611
Information Content of Dividends and Dividend Signaling 612
19.7 The Clientele Effect: A Resolution of Real-World Factors?      614
19.8 What We Know and Do Not Know about Dividend Policy     616
Corporate Dividends Are Substantial     616
Fewer Companies Pay Dividends           617
Corporations Smooth Dividends             618
Some Survey Evidence about Dividends       620
19.9 Putting It All Together                    621
19.10 Stock Dividends and Stock Splits        623
Value of Stock Splits and Stock Dividends   623
Reverse Splits                                          625
19.11 Corporate Tax Systems                 626
Classical System                                      626
Imputation System                                  626
One-Tier Corporate Tax System              627
Comparison of the Imputation System and the One-Tier Corporate Tax System      628
Benefits of Imputation System over One-tier Corporate Tax System            628
Benefits of One-tier Corporate Tax System over Imputation System            628
19.12 Corporate Tax Systems in Singapore, Malaysia, and Hong Kong        629
Singapore's Corporate Tax System          629
Malaysia's Corporate Tax System           630
Hong Kong's Corporate Tax System       631
Summary and Conclusions                      631
Concept Questions                                  632
Questions and Problems                          634
Mini Case: Electronic Timing, Inc,          638

PART V Long-Term Financing
CHAPTER 20
Raising Capital                                      639
20.1 Early-Stage Financing and Venture Capital       639
Venture Capital                                       640
Stages of Financing                                 641
Some Venture Capital Realities              642
Venture Capital Investments and Economic Conditions       643
20.2 The Public Issue                              643
20.3 Alternative Issue Methods              646
20.4 The Cash Offer                                647
Investment Banks                                    649
The Offering Price                                  651
Underpricing: A Possible Explanation    651
20.5 The Announcement of New Equity and the Value of the Firm 653
20.6 The Cost of New Issues                  654
The Costs of Going Public: A Case Study     655
20.7 Rights                                              657
The Mechanics of a Rights Offering       657
Subscription Price                                   659
Number of Rights Needed to Purchase a Share 659
Effect of Rights Offering on Price of Stock  660
Effects on Shareholders                          661
The Underwriting Arrangements            662
20.8 The Rights Puzzle                           662
20.9 Dilution                                           663
Dilution of Proportionate Ownership     663
Stock Price Dilution                                663
Book Value                                             664
Earnings per Share                                  665
Conclusion                                              665
20.10 Shelf Registration                         666
20.11 Issuing Long-Term Debt               666
Summary and Conclusions                      667
Concept Questions                                  668
Questions and Problems                          670
Mini Case: West Coast Yachts Goes Public   672

CHAPTER 21
Leasing                                                   674
21.1 Types of Leases                               674
The Basics                                               674
Operating Leases                                     675
Financial Leases                                      676
21.2 Accounting and Leasing                 677
21.3 Taxes, the IRS, and Leases             678
21.4 The Cash Flows of Leasing             679
21.5 A Detour for Discounting and Debt Capacity with Corporate Taxes    681
Present Value of Riskless Cash Flows    681
Optimal Debt Level and Riskless Cash Flows           683
21.6 NPV Analysis of the Lease-versus-Buy Decision          683
The Discount Rate                                  684
21.7 Debt Displacement and Lease Valuation           684
The Basic Concept of Debt Displacement      684
Optimal Debt Level in the Xomox Example  685
21.8 Does Leasing Ever Pay? The Base Case 688
21.9 Reasons for Leasing                        689
Good Reasons for Leasing                      689
Bad Reasons for Leasing                        692
2 1. 10 Some Unanswered Questions     693
Are the Uses of Leases and Debt Complementary? 693
Why Are Leases Offered by Both Manufacturers and Third-Party Lessors?            693
Why Are Some Assets Leased More Than Others?   693
Summary and Conclusions                      694
Concept Questions                                   695
Questions and Problems                          695
Mini Case: Sa Sa International Holding Limited 698
Appendix 21A: APV Approach to Leasing   699

PART VI Options, Futures, and Corporate Finance
CHAPTER 22
Options and Corporate Finance                      700
22.1 Options                                            700
22.2 Call Options                                     701
The Value of a Call Option at Expiration       701
22.3 Put Options                                      702
The Value of a Put Option at Expiration 703
22.4 Selling Options                                704
22.5 Option Quotes                                 705
22.6 Combinations of Options                 707
22.7 Valuing Options                               710
Bounding the Value of a Call                  710
The Factors Determining Call Option Values 711
A Quick Discussion of Factors Determining Put Option Values       714
A Note on Capital Changes and Dividend Payments            715
22.8 An Option Pricing Formula             715
A Two-State Option Model                     716
The Black–Scholes Model                       718
22.9 Stocks and Bonds as Options 723
The Firm Expressed in Terms of Call Options 724
The Firm Expressed in Terms of Put Options 726
A Resolution of the Two Views              727
A Note about Loan Guarantees               728
22.10 Options and Corporate Decisions: Some Applications 729
Mergers and Diversification                    729
Options and Capital Budgeting                    731
22.11 Investment in Real Projects and Options 733
Summary and Conclusions                      736
Concept Questions                                   736
Questions and Problems                          737
Excel Master It!                                       744
Mini Case: Clissold Industries Options   745

CHAPTER 23
Options and Corporate Finance: Extensions and Applications    747
23.1 Executive Stock Options                747
Why Options?                                        747
Valuing Executive Compensation          749
23.2 Valuing a Start-Up                         751
23.3 More about the Binomial Model    754
Heating Oil                                             755
23.4 Shutdown and Reopening Decisions      761
Valuing a Gold Mine                              761
The Abandonment and Opening Decisions    762
Valuing the Simple Gold Mine              763
Summary and Conclusions                     768
Concept Questions                                 768
Questions and Problems                         769
Mini Case: Exotic Cuisines' Employee Stock Options           771

CHAPTER 24
Warrants and Convertibles                 772
24.1 Warrants                                         772
24.2 The Difference between Warrants and Call Options      773
How the Firm Can Hurt Warrant Holders      776
24.3 Warrant Pricing and the Black–Scholes Model  776
24.4 Convertible Bonds                         778
24.5 The Value of Convertible Bonds   779
Straight Bond Value                              779
Conversion Value                                   779
Option Value                                          780
24.6 Reasons for Issuing Warrants and Convertibles 782
Convertible Debt versus Straight Debt  782
Convertible Debt versus Common Stock       782
The "Free Lunch" Story                          783
The "Expensive Lunch" Story                784
A Reconciliation                                     784
24.7 Why Are Warrants and Convertibles Issued?    785
Matching Cash Flows                             785
Risk Synergy                                          785
Agency Costs                                         786
Backdoor Equity                                    786
24.8 Conversion Policy                          786
Summary and Conclusions                     788
Concept Questions                                 788
Questions and Problems                         789
Mini Case: Convertible Bond                 791

CHAPTER 25
Derivatives and Hedging Risk             793
25.1 Derivatives, Hedging, and Risk     793
25.2 Forward Contracts                          794
25.3 Futures Contracts                           795
25A Hedging                                          799
25.5 Interest Rate Futures Contracts      801
Pricing of Treasury Bonds                      801
Pricing of Forward Contracts                 802
Futures Contracts                                   803
Hedging in Interest Rate Futures           804
25.6 Duration Hedging                           808
The Case of Zero Coupon Bonds           808
The Case of Two Bonds with the Same Maturity but with Different Coupons        809
Duration                                                  810
Matching Liabilities with Assets            812
25.7 Swaps Contracts                             814
Interest Rate Swaps                                815
Currency Swaps                                      816
Credit Default Swaps (CDS)              817
Exotics                                                    817
The Swap Market                                   818
25.8 Actual Use of Derivatives              819
Summary and Conclusions                     821
Concept Questions                           822
Questions and Problems                         823
Mini Case: Williamson Mortgage, Inc.  826

PART V11 Short-Term Finance
CHAPTER 26
Short-Term Finance and Planning         827
26.1 Tracing Cash and Net Working Capital 828
26.2 The Operating Cycle and the Cash Cycle        829
Defining the Operating and Cash Cycles       830
The Operating Cycle and the Firm's Organization Chart      832
Calculating the Operating and Cash Cycles  832
Interpreting the Cash Cycle                835
A Look at Operating and Cash Cycles   835
26.3 Some Aspects of Short-Term Financial Policy   836
The Size of the Firm's Investment in Current Assets 837
Alternative Financing Policies for Current Assets 839
Which Is Best?                                       841
26A Cash Budgeting                              842
Cash Outflow                                         843
The Cash Balance                                   844
26.5 The Short-Term Financial Plan       844
Unsecured Loans                                    844
Secured Loans                                        845
Other Sources                                         845
Summary and Conclusions                     846
Concept Questions                                  846
Questions and Problems                         847
Excel Master It'                                       855
Mini Case; Keafer Manufacturing Working Capital Management     856

CHAPTER 27
Cash Management                                857
Cash Management versus Liquidity Management 857
27.1 Reasons for Holding Cash              858
The Speculative and Precautionary Motives   858
The Transaction Motive                          858
Compensating Balances                          858
Costs of Holding Cash                           859
27.2 Understanding Float                       859
Disbursement Float                                 859
Collection Float and Net Float               860
Float Management                                  861
Electronic Data Interchange and Check 21: The End of Float?         864
27.3 Cash Collection and Concentration        865
Components of Collection Time             865
Cash Collection                                       866
Lockboxes                                               866
Cash Concentration                                867
Accelerating Collections: An Example   868
27.4 Managing Cash Disbursements       870
Increasing Disbursement Float               870
Controlling Disbursements                     871
27.5 Investing Idle Cash                         872
Temporary Cash Surpluses                      872
Characteristics of Short-Term Securities        873
Some Different Types of Money Market Securities 873
Summary and Conclusions                     874
Concept Questions                                  875
Questions and Problems                         876
Mini Case: Tiger Airways Holdings Limited  878
Appendix 27A: Determining the Target Cash Balance          878
Appendix 278: Adjustable Rate Preferred Stock, Auction Rate Preferred Stock,
and Floating-Rate Certificates of Deposit      878

CHAPTER 28
Credit and Inventory Management     879
28.1 Credit and Receivables                          879
Components of Credit Policy                        880
The Cash Flows from Granting Credit            880
The Investment in Receivables                      881
28.2 Terms of the Sale                                  881
The Basic Form                                          882
The Credit Period                                        882
Cash Discounts                                           883
Credit Instruments                                      885
28.3 Analyzing Credit Policy                        886
Credit Policy Effects                                   886
Evaluating a Proposed Credit Policy               886
28.4 Optimal Credit Policy                           889
The Total Credit Cost Curve                         889
Organizing the Credit Function                     890
28.5 Credit Analysis                                    891
When Should Credit Be Granted?                 891
Credit Information                                      893
Credit Evaluation and Scoring                       893
28.6 Collection Policy                                  894
Monitoring Receivables                                894
Collection Effort                                         895
28.7 Inventory Management                         895
The Financial Manager and Inventory Policy 896
Inventory Types                                          896
Inventory Costs                                          896
28.8 Inventory Management Techniques         897
The ABC Approach                                    897
The Economic Order Quantity Model            897
Extensions to the EOQ Model                      902
Managing Derived-Demand Inventories         902
Summary and Conclusions                           904
Concept Questions                                      905
Questions and Problems                               906
Mini Case: A-motion Company Limited         908
Appendix 28A: More about Credit Policy Analysis     909

PART VIII Special Topics
CHAPTER 29
Mergers, Acquisitions, and Divestitures 910
29.1 The Basic Forms of Acquisitions             910
Merger or Consolidation                               910
Acquisition of Stock                                    911
Acquisition of Assets                                   911
A Classification Scheme                               912
A Note about Takeovers                              912
Alternatives to Merger                                  913
A Note on Reverse Takeovers                        913
29.2 Synergy                                               913
29.3 Sources of Synergy                               9
Revenue Enhancement                                 915
Cost Reduction                                           916
Tax Gains                                                   918
Reduced Capital Requirements                      920
29A Dubious Reasons for of Acquisitions        921
Earnings Growth                                         921
Diversification                                             923
29.5 A Cost to Stockholders from Reduction in Risk 923
The Base Case                                             924
Both Firms Have Debt                                 925
How Can Shareholders Reduce Their Losses from the Coinsurance Effect?     926
29.6 The NPV of a Merger                            926
Cash                                                          926
Common Stock                                           927
Cash versus Common Stock                          928
29.7 Friendly versus Hostile Takeovers            930
29.8 Defensive Tactics                                  932
Deterring Takeovers before Being in Play         932
Deterring a Takeover after the Company Is in Play      933
29.9 Do Mergers Add Value?                    935
Returns to Bidders                                       937
Target Companies                                        938
The Managers versus the Stockholders            938
29.10 The Tax Forms of Acquisitions              940
29.11 Accounting for Acquisitions                  942
29.12 Going Private and Leveraged Buyouts 941
29.13 Divestitures                                        944
Sale                                                           944
Spin-Off                                                    944
Carve-Out                                                  945
Tracking Stocks                                           945
Summary and Conclusions                            946
Concept Questions                                       946
Questions and Problems                                947
Mini Case: The Birdie Golf—Hybrid Golf Merger 953

CHAPTER 30
Financial Distress                                   955
30.1 What Is Financial Distress? 955
30.2 What Happens in Financial Distress? 957
30.3 Bankruptcy Liquidation and Reorganization         959
Bankruptcy Liquidation                                960
Bankruptcy Reorganization                                    961
30.4 Private Workout or Bankruptcy: Which Is Best?   965
The Marginal Firm                                       966
Holdouts                                                  966
Complexity                                              966
Lack of Information                                966
30.5 Prepackaged Bankruptcy                      967
30.6 Predicting Corporate Bankruptcy: The Z-Score Model  968
Summary and Conclusions                      970
Concept Questions                                  970
Questions and Problems                          971

CHAPTER 31
International Corporate Finance  973
31.1 Terminology                                                 974
31.2 Foreign Exchange Markets and Exchange Rates           974
Exchange Rates                                       976
31.3 Purchasing Power Parity                  980
Absolute Purchasing Power Parity          980
Relative Purchasing Power Parity           981
31.4 Interest Rate Parity, Unbiased Forward Rates, and the International Fisher Effect 984
Covered Interest Arbitrage                      984
Interest Rate Parity                                  986
Forward Rates and Future Spot Rates    987
Putting It All Together                            988
31.5 International Capital Budgeting      989
Method 1: The Home Currency Approach     990
Method 2: The Foreign Currency Approach   990
Unremitted Cash Flows                          991
The Cost of Capital for International Firms   991
31.6 Exchange Rate Risk                        992
Short-Term Exposure                              992
Long-Term Exposure                               993
Translation Exposure                               993
Managing Exchange Rate Risk               995
31.7 Political Risk                                   995
Summary and Conclusions                      996
Concept Questions                                  996
Questions and Problems                          998
Excel Master It!                                                   1001
Mini Case: Carpenter Technology Corporation          1001

Appendix A: Mathematical Tables           1003
Appendix B: Solutions to Selected
End-of-Chapter Problems                       1012
Appendix C: Using the HP 108 and TI BA 11 Plus
Financial Calculators                              1015
Glossary                                                  1019
Name Index                                             1037
Subject Index                                           1039

Some Commonly Used Notations            1061
Some Useful Formulas                            1062


KEMBALI KE HALAMAN AWAL


Share This Article


0 komentar:

Posting Komentar

Copyright © 2015. AJIBAYUSTORE - All Rights Reserved-ALAMAT JALAN KEBANGKITAN NASIONAL TOKO BUKU NO.21-22 SOLO JAWA TENGAH KONTAK:0857 2823 4422
Creating Website Miko Bayu Saputra