TAILIEUCHUNG - Ebook Foundations of financial management (14th edition): Part 2

(BQ) Part 2 book "Foundations of financial management" has contents: The capital budgeting decision, risk and capital budgeting, capital markets, common and preferred stock financing, dividend policy and retained earnings, external growth through mergers,.and other contents. | Confirming Pages 11 LEARNING OBJECTIVES LO1 The cost of capital represents the weighted average cost of the source of financing to the firm. LO2 The cost of capital is normally the discount rate to use in analyzing an investment. LO3 The cost of capital is based on the valuation techniques from the previous chapter and is applied to bonds, preferred stock, and common stock. LO4 A firm attempts to find a minimum cost of capital through varying the mix of its sources of financing. LO5 The cost of capital may eventually increase as larger amounts of financing are utilized. Cost of Capital T How does the firm determine the cost of its funds or, more properly stated, the cost of capital? Suppose the plant superintendent wishes to borrow money at 6 percent to purchase a conveyor system, while a division manager suggests stock be sold at an effective cost of 12 percent to develop a new product. Not only would it be foolish for each investment to be judged against the specific means of financing used to implement it, but this would also make investment selection decisions inconsistent. PART 4 The Capital Budgeting Process hroughout the previous two chapters, a number of references were made to discounting future cash flows in solving for the present value. How do you determine the appropriate interest rate or discount rate in a real situation? Suppose that a young doctor is rendered incapable of practicing medicine due to an auto accident in the last year of his residency. The court determines that he could have made $100,000 a year for the next 30 years. What is the present value of these inflows? We must know the appropriate discount rate. If 10 percent is used, the value is $942,700; with 5 percent, the answer is $1,537,300—over half a million dollars is at stake. In the corporate finance setting, the more likely circumstance is that an investment will be made today—promising a set of inflows in the future—and we need to know the .

• Ngân hàng - Tín dụng
• Foundations of financial management
• Financial management
• The capital budgeting decision
• Capital markets
• Retained earnings
• External growth through mergers
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Financial performance
• Understanding financial statements
• The financial markets
• Foundations of finance
• The time value of money
• Interest rates
• The time value
• Risk and return
• A firm’s financial performance
• Financial assets
• The valuation
• The cost of capital
• Capital structure
• Dividend policy
• Investment in long term assets
• Working capital management
• International business finance
• Capital Budgeting techniques
• Capital budgeting
• Determining the financing mix
• Internal financing
• Financial Markets and Products book 3
• Financial Risk Management
• Risk Management Lecture
• Foundations of Risk Management
• Risk defining risk
• Financial Markets and Products
• Valuation and Risk Models
• Financial Risk Management FRM book 1
• Working capital
• Short term financial planning
• Quantitative Analysis book 2
• Valuation and Risk Models book 4
• Preferred stock financing
• Foundations of microeconomics
• International aspects
• Financial Institutions
• Financial Intermediaries
• Asset Management Firms
• Depository Institutions
• Activities and Characteristics
• The U
• Federal Reserve
• the Creation of Money