Fundamentals of
Corporate Finance
Eighth EDITION
bre61620_fm_i-xxxv.indd ibre61620_fm_i-xxxv.indd i 7/30/14 4:20 PM7/30/14 4:20 PM
Final PDF to printer
Fundamentals of
Corporate Finance
Richard A. Brealey
London Business School
Stewart C. Myers
Sloan School of Management,
Massachusetts Institute of Technology
Alan J. Marcus
Carroll School of Management,
Boston College
Eighth EDITION
bre61620_fm_i-xxxv.indd iiibre61620_fm_i-xxxv.indd iii 7/30/14 4:20 PM7/30/14 4:20 PM
Final PDF to printer
THE McGRAW-HILL/IRWIN SERIES IN FINANCE, INSURANCE, AND REAL ESTATE
Stephen A. Ross, Franco Modigliani Professor of Financial Economics
Sloan School of Management, Massachusetts Institute of Technology
Consulting Editor
Financial Management
Block, Hirt, and Danielsen
Foundations of Financial Management
Fifteenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance
Eleventh Edition
Brealey, Myers, and Allen
Principles of Corporate Finance, Concise
Second Edition
Brealey, Myers, and Marcus
Fundamentals of Corporate Finance
Eighth Edition
Brooks
FinGame Online 5.0
Bruner
Case Studies in Finance: Managing for
Corporate Value Creation
Seventh Edition
Cornett, Adair, and Nofsinger
Finance: Applications and Theory
Third Edition
Cornett, Adair, and Nofsinger
M: Finance
Second Edition
DeMello
Cases in Finance
Second Edition
Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through
Generations
Grinblatt and Titman
Financial Markets and Corporate Strategy
Second Edition
Higgins
Analysis for Financial Management
Tenth Edition
Kellison
Theory of Interest
Third Edition
Ross, Westerfield, and Jaffe
Corporate Finance
Tenth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance: Core Principles and
Applications
Fourth Edition
Ross, Westerfield, and Jordan
Essentials of Corporate Finance
Eighth Edition
Ross, Westerfield, and Jordan
Fundamentals of Corporate Finance
Tenth Edition
Shefrin
Behavioral Corporate Finance: Decisions That
Create Value
First Edition
White
Financial Analysis with an Electronic
Calculator
Sixth Edition
Investments
Bodie, Kane, and Marcus
Essentials of Investments
Ninth Edition
Bodie, Kane, and Marcus
Investments
Tenth Edition
Hirt and Block
Fundamentals of Investment Management
Tenth Edition
Hirschey and Nofsinger
Investments: Analysis and Behavior
Second Edition
Jordan, Miller, and Dolvin
Fundamentals of Investments: Valuation and
Management
Seventh Edition
Stewart, Piros, and Heisler
Running Money: Professional Portfolio
Management
First Edition
Sundaram and Das
Derivatives: Principles and Practice
First Edition
Financial Institutions and Mark.
Fundamentals of
Corporate Finance
Eighth EDITION
bre61620_fm_i-xxxv.indd ibre61620_fm_i-xxxv.indd i 7/30/14 4:20 PM7/30/14 4:20 PM
Final PDF to printer
Fundamentals of
Corporate Finance
Richard A. Brealey
London Business School
Stewart C. Myers
Sloan School of Management,
Massachusetts Institute of Technology
Alan J. Marcus
Carroll School of Management,
Boston College
Eighth EDITION
bre61620_fm_i-xxxv.indd iiibre61620_fm_i-xxxv.indd iii 7/30/14 4:20 PM7/30/14 4:20 PM
Final PDF to printer
THE McGRAW-HILL/IRWIN SERIES IN FINANCE, INSURANCE, AND REAL ESTATE
Stephen A. Ross, Franco Modigliani Professor of Financial Economics
Sloan School of Management, Massachusetts Institute of Technology
Consulting Editor
Financial Management
Block, Hirt, and Danielsen
Foundations of Financial Management
Fifteenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance
Eleventh Edition
Brealey, Myers, and Allen
Principles of Corporate Finance, Concise
Second Edition
Brealey, Myers, and Marcus
Fundamentals of Corporate Finance
Eighth Edition
Brooks
FinGame Online 5.0
Bruner
Case Studies in Finance: Managing for
Corporate Value Creation
Seventh Edition
Cornett, Adair, and Nofsinger
Finance: Applications and Theory
Third Edition
Cornett, Adair, and Nofsinger
M: Finance
Second Edition
DeMello
Cases in Finance
Second Edition
Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through
Generations
Grinblatt and Titman
Financial Markets and Corporate Strategy
Second Edition
Higgins
Analysis for Financial Management
Tenth Edition
Kellison
Theory of Interest
Third Edition
Ross, Westerfield, and Jaffe
Corporate Finance
Tenth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance: Core Principles and
Applications
Fourth Edition
Ross, Westerfield, and Jordan
Essentials of Corporate Finance
Eighth Edition
Ross, Westerfield, and Jordan
Fundamentals of Corporate Finance
Tenth Edition
Shefrin
Behavioral Corporate Finance: Decisions That
Create Value
First Edition
White
Financial Analysis with an Electronic
Calculator
Sixth Edition
Investments
Bodie, Kane, and Marcus
Essentials of Investments
Ninth Edition
Bodie, Kane, and Marcus
Investments
Tenth Edition
Hirt and Block
Fundamentals of Investment Management
Tenth Edition
Hirschey and Nofsinger
Investments: Analysis and Behavior
Second Edition
Jordan, Miller, and Dolvin
Fundamentals of Investments: Valuation and
Management
Seventh Edition
Stewart, Piros, and Heisler
Running Money: Professional Portfolio
Management
First Edition
Sundaram and Das
Derivatives: Principles and Practice
First Edition
Financial Institutions and Mark.
i
Fundamentals of
CORPORATE FINANCE
2
ii
The McGraw-Hill Education Series in Finance,
Insurance, and Real Estate
Financial Management
Block, Hirt, and Danielsen
Foundations of Financial Management Sixteenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance Twelfth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance, Concise Second Edition
Brealey, Myers, and Marcus
Fundamentals of Corporate Finance Ninth Edition
Brooks
FinGame Online 5.0
Bruner, Eades, and Schill
Case Studies in Finance: Managing for Corporate Value Creation
Eighth Edition
Cornett, Adair, and Nofsinger
Finance: Applications and Theory Fourth Edition
Cornett, Adair, and Nofsinger
M: Finance Fourth Edition
DeMello
Cases in Finance Third Edition
Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through Generations
Grinblatt and Titman
Financial Markets and Corporate Strategy Second Edition
Higgins
Analysis for Financial Management Twelfth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance Eleventh Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance: Core Principles and Applications
Fifth Edition
3
Ross, Westerfield, and Jordan
Essentials of Corporate Finance Ninth Edition
Ross, Westerfield, and Jordan
Fundamentals of Corporate Finance Twelfth Edition
Shefrin
Behavioral Corporate Finance: Decisions that Create Value Second
Edition
Investments
Bodie, Kane, and Marcus
Essentials of Investments Tenth Edition
Bodie, Kane, and Marcus
Investments Eleventh Edition
Hirt and Block
Fundamentals of Investment Management Tenth Edition
Jordan, Miller, and Dolvin
Fundamentals of Investments: Valuation and Management Eighth Edition
Stewart, Piros, and Heisler
Running Money: Professional Portfolio Management
First Edition
Sundaram and Das
Derivatives: Principles and Practice Second Edition
Financial Institutions and Markets
Rose and Hudgins
Bank Management and Financial Services Ninth Edition
Rose and Marquis
Financial Institutions and Markets Eleventh Edition
Saunders and Cornett
Financial Institutions Management: A Risk Management Approach Ninth
Edition
Saunders and Cornett
Financial Markets and Institutions Seventh Edition
International Finance
Eun and Resnick
International Financial Management Eighth Edition
4
Real Estate
Brueggeman and Fisher
Real Estate Finance and Investments Sixteenth Edition
Ling and Archer
Real Estate Principles: A Value Approach Fifth Edition
Financial Planning and Insurance
Allen, Melone, Rosenbloom, and Mahoney
Retirement Plans: 401(k)s, IRAs, and Other Deferred Compensation
Approaches Twelfth Edition
Altfest
Personal Financial Planning Second Edition
Harrington and Niehaus
Risk Management and Insurance Second Edition
Kapoor, Dlabay, Hughes, and Hart
Focus on Personal Finance: An Active Approach to Help You Achieve
Financial Literacy
Sixth Edition
Kapoor, Dlabay, Hughes, and Hart
Personal Finance Twelfth Edition
Walker and Walker
Personal Finance: Building Your Future Second Edition
5
ii ...
Essentials of Corporate Financeros13952_fm_i-xxxvi.i.docxdebishakespeare
Essentials of
Corporate Finance
ros13952_fm_i-xxxvi.indd 1 1/4/19 12:19 PM
The McGraw-Hill Education Series in Finance, Insurance, and Real Estate
FINANCIAL MANAGEMENT
Block, Hirt, and Danielsen
Foundations of Financial Management
Seventeenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance
Thirteenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance, Concise
Second Edition
Brealey, Myers, and Marcus
Fundamentals of Corporate Finance
Tenth Edition
Brooks
FinGame Online 5.0
Bruner, Eades, and Schill
Case Studies in Finance: Managing for
Corporate Value Creation
Eighth Edition
Cornett, Adair, and Nofsinger
Finance: Applications and Theory
Fifth Edition
Cornett, Adair, and Nofsinger
M: Finance
Fourth Edition
DeMello
Cases in Finance
Third Edition
Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through
Generations
Grinblatt and Titman
Financial Markets and Corporate Strategy
Second Edition
Higgins
Analysis for Financial Management
Twelfth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance
Twelfth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance: Core Principles and
Applications
Fifth Edition
Ross, Westerfield, and Jordan
Essentials of Corporate Finance
Tenth Edition
Ross, Westerfield, and Jordan
Fundamentals of Corporate Finance
Twelfth Edition
Shefrin
Behavioral Corporate Finance: Decisions
that Create Value
Second Edition
INVESTMENTS
Bodie, Kane, and Marcus
Essentials of Investments
Eleventh Edition
Bodie, Kane, and Marcus
Investments
Eleventh Edition
Hirt and Block
Fundamentals of Investment Management
Tenth Edition
Jordan, Miller, and Dolvin
Fundamentals of Investments: Valuation and
Management
Eighth Edition
Stewart, Piros, and Heisler
Running Money: Professional Portfolio
Management
First Edition
Sundaram and Das
Derivatives: Principles and Practice
Second Edition
FINANCIAL INSTITUTIONS AND
MARKETS
Rose and Hudgins
Bank Management and Financial Services
Ninth Edition
Rose and Marquis
Financial Institutions and Markets
Eleventh Edition
Saunders and Cornett
Financial Institutions Management: A Risk
Management Approach
Ninth Edition
Saunders and Cornett
Financial Markets and Institutions
Seventh Edition
INTERNATIONAL FINANCE
Eun and Resnick
International Financial Management
Eighth Edition
REAL ESTATE
Brueggeman and Fisher
Real Estate Finance and Investments
Sixteenth Edition
Ling and Archer
Real Estate Principles: A Value Approach
Fifth Edition
FINANCIAL PLANNING AND
INSURANCE
Allen, Melone, Rosenbloom, and Mahoney
Retirement Plans: 401(k)s, IRAs, and Other
Deferred Compensation Approaches
Twelfth Edition
Altfest
Personal Financial Planning
Second Edition
Harrington and Niehaus
Risk Management and Insurance
Second Edition
Kapoor, Dlabay, Hughes, and Hart
Focus on Personal Finance: An Active
Approach to Help you Achieve Financial
Literacy
Sixth Edition
Kapoor, Dlabay, Hughes, and Hart
Personal Finance
Thirteenth Edition
Walk.
Foundations of FinanceThe Logic and Practice of Financia.docxshericehewat
Foundations of Finance
The Logic and Practice of Financial Management
Eighth Edition
Bekaert/Hodrick
International Financial Management
Berk/DeMarzo
Corporate Finance*
Berk/DeMarzo
Corporate Finance: The Core*
Berk/DeMarzo/Harford
Fundamentals of Corporate Finance*
Brooks
Financial Management: Core Concepts*
Copeland/Weston/Shastri
Financial Theory and Corporate Policy
Dorfman/Cather
Introduction to Risk Management and Insurance
Eiteman/Stonehill/Moffett
Multinational Business Finance
Fabozzi
Bond Markets: Analysis and Strategies
Fabozzi/Modigliani
Capital Markets: Institutions and Instruments
Fabozzi/Modigliani/Jones
Foundations of Financial Markets and Institutions
Finkler
Financial Management for Public, Health, and
Not-for-Profit Organizations
Frasca
Personal Finance
Gitman/Zutter
Principles of Managerial Finance*
Gitman/Zutter
Principles of Managerial Finance—Brief Edition*
Haugen
The Inefficient Stock Market: What Pays Off and
Why
Haugen
The New Finance: Overreaction, Complexity, and
Uniqueness
Holden
Excel Modeling in Corporate Finance
Holden
Excel Modeling in Investments
Hughes/MacDonald
International Banking: Text and Cases
Hull
Fundamentals of Futures and Options Markets
Hull
Options, Futures, and Other Derivatives
Keown
Personal Finance: Turning Money into Wealth*
Keown/Martin/Petty
Foundations of Finance: The Logic and Practice of
Financial Management*
Kim/Nofsinger
Corporate Governance
Madura
Personal Finance*
Marthinsen
Risk Takers: Uses and Abuses of Financial Derivatives
McDonald
Derivatives Markets
McDonald
Fundamentals of Derivatives Markets
Mishkin/Eakins
Financial Markets and Institutions
Moffett/Stonehill/Eiteman
Fundamentals of Multinational Finance
Nofsinger
Psychology of Investing
Ormiston/Fraser
Understanding Financial Statements
Pennacchi
Theory of Asset Pricing
Rejda
Principles of Risk Management and Insurance
Seiler
Performing Financial Studies: A Methodological
Cookbook
Smart/Gitman/Joehnk
Fundamentals of Investing*
Solnik/McLeavey
Global Investments
Stretcher/Michael
Cases in Financial Management
Titman/Keown/Martin
Financial Management: Principles and
Applications*
Titman/Martin
Valuation: The Art and Science of Corporate
Investment Decisions
Weston/Mitchel/Mulherin
Takeovers, Restructuring, and Corporate
Governance
The Pearson Series in Finance
*denotes MyFinanceLab titles Log onto www.myfinancelab.com to learn more
www.myfinancelab.com
Foundations of Finance
The Logic and Practice of Financial Management
Eighth Edition
Arthur J. Keown
Virginia Polytechnic Institute and State University
R. B. Pamplin Professor of Finance
John D. Martin
Baylor University
Professor of Finance
Carr P. Collins Chair in Finance
J. William Petty
Baylor University
Professor of Finance
W. W. Caruth Chair in Entrepreneurship
Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Mon ...
The banking industry appears to be undergoing a renaissance driven by changing consumer behavior and technical innovation. Software is eating the industry. In retrospect, we can see how the first wave of innovation came in areas such as online account access and payments. Changing consumer behavior (such as the shift to mobile) and the use of big data has enabled increasingly complex transactions (such as lending and asset management) to move online. Consumers have largely stopped going to retail branches, and reserve the occasional branch visit for major one-off transactions.
Our first investment in the financial services industry came many years ago with an investment in LendingClub. We put both equity and debt into the company, making a sizable purchase of loans via the platform itself. We saw the company’s potential to bring marketplace dynamics and software disruption to the lending industry. The end goal for borrowers and investors on the platform was simple: lower cost loans for borrowers, increased yields for investors, and high levels of customer satisfaction. As a result, LendingClub has grown into a sizable public company. With experience on the platform and a realization of the potentially transformative nature of this model, we’ve gone on to invest in companies across the online lending space: Kabbage (www.kabbage.com), LendUp (www.lendup.com), and SoFi (www.sofi.com).
The renaissance in financial services has drawn in substantial amounts of venture capital. In the past year alone, the number of fintech deals has grown 16% and the capital funded is up 46%.
While many entrepreneurs develop expertise in the specific segment they intend to disrupt, we’ve noticed that startups usually don’t have the time or resources to look outside their niche and understand how they fit into the larger context of banking and lending markets. To help put the industry in perspective, we developed an overview of the banking industry in the US. What’s remarkable is not only the insights this gives into the financial lives of Americans (be it millenials or seniors), but also the perspective this gives us on the large banks we’ve all come to use. Indeed, consolidation over the last several decades has led the four major banks (JP Morgan, Bank of America, Citigroup, and Wells Fargo) to hold around half of the market’s depository assets.
Today we’re happy to provide the first version of this industry overview. We’ve chosen brevity over depth, so as to provide a snapshot of the overall banking landscape. We’ll continue to iterate on this overview and welcome questions and comments. In subsequent posts, we plan to provide deeper dives into sectors that are of interest to both ourselves and others. We look forward to contributing to what feels like yet another opportunity to be at the front door of history-making companies.
· Present a discussion of what team is. What type(s) of team do .docxalinainglis
· Present a discussion of what team is. What type(s) of team do you have in your organization?
· What is meant by the “internal processes” of a team? Why is it important to manage both the internal processes and external opportunities/constraints of a team?
Note: It should contain 3 pages with citation included and References should be in APA format
.
· Presentation of your project. Prepare a PowerPoint with 8 slid.docxalinainglis
· Presentation of your project. Prepare a PowerPoint with 8 slides illustrating the role in Interdisciplinary care for our aging population (Outcome 1,2,3,4,5) (6 hours).
Make sure it has nursing diagnosis
make sure it's a APA STYLE
make sure it has reference
.
More Related Content
Similar to 7. (TCOs E and F) Answer Parts A, B, and C completely. (40 points).docx
i
Fundamentals of
CORPORATE FINANCE
2
ii
The McGraw-Hill Education Series in Finance,
Insurance, and Real Estate
Financial Management
Block, Hirt, and Danielsen
Foundations of Financial Management Sixteenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance Twelfth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance, Concise Second Edition
Brealey, Myers, and Marcus
Fundamentals of Corporate Finance Ninth Edition
Brooks
FinGame Online 5.0
Bruner, Eades, and Schill
Case Studies in Finance: Managing for Corporate Value Creation
Eighth Edition
Cornett, Adair, and Nofsinger
Finance: Applications and Theory Fourth Edition
Cornett, Adair, and Nofsinger
M: Finance Fourth Edition
DeMello
Cases in Finance Third Edition
Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through Generations
Grinblatt and Titman
Financial Markets and Corporate Strategy Second Edition
Higgins
Analysis for Financial Management Twelfth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance Eleventh Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance: Core Principles and Applications
Fifth Edition
3
Ross, Westerfield, and Jordan
Essentials of Corporate Finance Ninth Edition
Ross, Westerfield, and Jordan
Fundamentals of Corporate Finance Twelfth Edition
Shefrin
Behavioral Corporate Finance: Decisions that Create Value Second
Edition
Investments
Bodie, Kane, and Marcus
Essentials of Investments Tenth Edition
Bodie, Kane, and Marcus
Investments Eleventh Edition
Hirt and Block
Fundamentals of Investment Management Tenth Edition
Jordan, Miller, and Dolvin
Fundamentals of Investments: Valuation and Management Eighth Edition
Stewart, Piros, and Heisler
Running Money: Professional Portfolio Management
First Edition
Sundaram and Das
Derivatives: Principles and Practice Second Edition
Financial Institutions and Markets
Rose and Hudgins
Bank Management and Financial Services Ninth Edition
Rose and Marquis
Financial Institutions and Markets Eleventh Edition
Saunders and Cornett
Financial Institutions Management: A Risk Management Approach Ninth
Edition
Saunders and Cornett
Financial Markets and Institutions Seventh Edition
International Finance
Eun and Resnick
International Financial Management Eighth Edition
4
Real Estate
Brueggeman and Fisher
Real Estate Finance and Investments Sixteenth Edition
Ling and Archer
Real Estate Principles: A Value Approach Fifth Edition
Financial Planning and Insurance
Allen, Melone, Rosenbloom, and Mahoney
Retirement Plans: 401(k)s, IRAs, and Other Deferred Compensation
Approaches Twelfth Edition
Altfest
Personal Financial Planning Second Edition
Harrington and Niehaus
Risk Management and Insurance Second Edition
Kapoor, Dlabay, Hughes, and Hart
Focus on Personal Finance: An Active Approach to Help You Achieve
Financial Literacy
Sixth Edition
Kapoor, Dlabay, Hughes, and Hart
Personal Finance Twelfth Edition
Walker and Walker
Personal Finance: Building Your Future Second Edition
5
ii ...
Essentials of Corporate Financeros13952_fm_i-xxxvi.i.docxdebishakespeare
Essentials of
Corporate Finance
ros13952_fm_i-xxxvi.indd 1 1/4/19 12:19 PM
The McGraw-Hill Education Series in Finance, Insurance, and Real Estate
FINANCIAL MANAGEMENT
Block, Hirt, and Danielsen
Foundations of Financial Management
Seventeenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance
Thirteenth Edition
Brealey, Myers, and Allen
Principles of Corporate Finance, Concise
Second Edition
Brealey, Myers, and Marcus
Fundamentals of Corporate Finance
Tenth Edition
Brooks
FinGame Online 5.0
Bruner, Eades, and Schill
Case Studies in Finance: Managing for
Corporate Value Creation
Eighth Edition
Cornett, Adair, and Nofsinger
Finance: Applications and Theory
Fifth Edition
Cornett, Adair, and Nofsinger
M: Finance
Fourth Edition
DeMello
Cases in Finance
Third Edition
Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through
Generations
Grinblatt and Titman
Financial Markets and Corporate Strategy
Second Edition
Higgins
Analysis for Financial Management
Twelfth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance
Twelfth Edition
Ross, Westerfield, Jaffe, and Jordan
Corporate Finance: Core Principles and
Applications
Fifth Edition
Ross, Westerfield, and Jordan
Essentials of Corporate Finance
Tenth Edition
Ross, Westerfield, and Jordan
Fundamentals of Corporate Finance
Twelfth Edition
Shefrin
Behavioral Corporate Finance: Decisions
that Create Value
Second Edition
INVESTMENTS
Bodie, Kane, and Marcus
Essentials of Investments
Eleventh Edition
Bodie, Kane, and Marcus
Investments
Eleventh Edition
Hirt and Block
Fundamentals of Investment Management
Tenth Edition
Jordan, Miller, and Dolvin
Fundamentals of Investments: Valuation and
Management
Eighth Edition
Stewart, Piros, and Heisler
Running Money: Professional Portfolio
Management
First Edition
Sundaram and Das
Derivatives: Principles and Practice
Second Edition
FINANCIAL INSTITUTIONS AND
MARKETS
Rose and Hudgins
Bank Management and Financial Services
Ninth Edition
Rose and Marquis
Financial Institutions and Markets
Eleventh Edition
Saunders and Cornett
Financial Institutions Management: A Risk
Management Approach
Ninth Edition
Saunders and Cornett
Financial Markets and Institutions
Seventh Edition
INTERNATIONAL FINANCE
Eun and Resnick
International Financial Management
Eighth Edition
REAL ESTATE
Brueggeman and Fisher
Real Estate Finance and Investments
Sixteenth Edition
Ling and Archer
Real Estate Principles: A Value Approach
Fifth Edition
FINANCIAL PLANNING AND
INSURANCE
Allen, Melone, Rosenbloom, and Mahoney
Retirement Plans: 401(k)s, IRAs, and Other
Deferred Compensation Approaches
Twelfth Edition
Altfest
Personal Financial Planning
Second Edition
Harrington and Niehaus
Risk Management and Insurance
Second Edition
Kapoor, Dlabay, Hughes, and Hart
Focus on Personal Finance: An Active
Approach to Help you Achieve Financial
Literacy
Sixth Edition
Kapoor, Dlabay, Hughes, and Hart
Personal Finance
Thirteenth Edition
Walk.
Foundations of FinanceThe Logic and Practice of Financia.docxshericehewat
Foundations of Finance
The Logic and Practice of Financial Management
Eighth Edition
Bekaert/Hodrick
International Financial Management
Berk/DeMarzo
Corporate Finance*
Berk/DeMarzo
Corporate Finance: The Core*
Berk/DeMarzo/Harford
Fundamentals of Corporate Finance*
Brooks
Financial Management: Core Concepts*
Copeland/Weston/Shastri
Financial Theory and Corporate Policy
Dorfman/Cather
Introduction to Risk Management and Insurance
Eiteman/Stonehill/Moffett
Multinational Business Finance
Fabozzi
Bond Markets: Analysis and Strategies
Fabozzi/Modigliani
Capital Markets: Institutions and Instruments
Fabozzi/Modigliani/Jones
Foundations of Financial Markets and Institutions
Finkler
Financial Management for Public, Health, and
Not-for-Profit Organizations
Frasca
Personal Finance
Gitman/Zutter
Principles of Managerial Finance*
Gitman/Zutter
Principles of Managerial Finance—Brief Edition*
Haugen
The Inefficient Stock Market: What Pays Off and
Why
Haugen
The New Finance: Overreaction, Complexity, and
Uniqueness
Holden
Excel Modeling in Corporate Finance
Holden
Excel Modeling in Investments
Hughes/MacDonald
International Banking: Text and Cases
Hull
Fundamentals of Futures and Options Markets
Hull
Options, Futures, and Other Derivatives
Keown
Personal Finance: Turning Money into Wealth*
Keown/Martin/Petty
Foundations of Finance: The Logic and Practice of
Financial Management*
Kim/Nofsinger
Corporate Governance
Madura
Personal Finance*
Marthinsen
Risk Takers: Uses and Abuses of Financial Derivatives
McDonald
Derivatives Markets
McDonald
Fundamentals of Derivatives Markets
Mishkin/Eakins
Financial Markets and Institutions
Moffett/Stonehill/Eiteman
Fundamentals of Multinational Finance
Nofsinger
Psychology of Investing
Ormiston/Fraser
Understanding Financial Statements
Pennacchi
Theory of Asset Pricing
Rejda
Principles of Risk Management and Insurance
Seiler
Performing Financial Studies: A Methodological
Cookbook
Smart/Gitman/Joehnk
Fundamentals of Investing*
Solnik/McLeavey
Global Investments
Stretcher/Michael
Cases in Financial Management
Titman/Keown/Martin
Financial Management: Principles and
Applications*
Titman/Martin
Valuation: The Art and Science of Corporate
Investment Decisions
Weston/Mitchel/Mulherin
Takeovers, Restructuring, and Corporate
Governance
The Pearson Series in Finance
*denotes MyFinanceLab titles Log onto www.myfinancelab.com to learn more
www.myfinancelab.com
Foundations of Finance
The Logic and Practice of Financial Management
Eighth Edition
Arthur J. Keown
Virginia Polytechnic Institute and State University
R. B. Pamplin Professor of Finance
John D. Martin
Baylor University
Professor of Finance
Carr P. Collins Chair in Finance
J. William Petty
Baylor University
Professor of Finance
W. W. Caruth Chair in Entrepreneurship
Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Mon ...
The banking industry appears to be undergoing a renaissance driven by changing consumer behavior and technical innovation. Software is eating the industry. In retrospect, we can see how the first wave of innovation came in areas such as online account access and payments. Changing consumer behavior (such as the shift to mobile) and the use of big data has enabled increasingly complex transactions (such as lending and asset management) to move online. Consumers have largely stopped going to retail branches, and reserve the occasional branch visit for major one-off transactions.
Our first investment in the financial services industry came many years ago with an investment in LendingClub. We put both equity and debt into the company, making a sizable purchase of loans via the platform itself. We saw the company’s potential to bring marketplace dynamics and software disruption to the lending industry. The end goal for borrowers and investors on the platform was simple: lower cost loans for borrowers, increased yields for investors, and high levels of customer satisfaction. As a result, LendingClub has grown into a sizable public company. With experience on the platform and a realization of the potentially transformative nature of this model, we’ve gone on to invest in companies across the online lending space: Kabbage (www.kabbage.com), LendUp (www.lendup.com), and SoFi (www.sofi.com).
The renaissance in financial services has drawn in substantial amounts of venture capital. In the past year alone, the number of fintech deals has grown 16% and the capital funded is up 46%.
While many entrepreneurs develop expertise in the specific segment they intend to disrupt, we’ve noticed that startups usually don’t have the time or resources to look outside their niche and understand how they fit into the larger context of banking and lending markets. To help put the industry in perspective, we developed an overview of the banking industry in the US. What’s remarkable is not only the insights this gives into the financial lives of Americans (be it millenials or seniors), but also the perspective this gives us on the large banks we’ve all come to use. Indeed, consolidation over the last several decades has led the four major banks (JP Morgan, Bank of America, Citigroup, and Wells Fargo) to hold around half of the market’s depository assets.
Today we’re happy to provide the first version of this industry overview. We’ve chosen brevity over depth, so as to provide a snapshot of the overall banking landscape. We’ll continue to iterate on this overview and welcome questions and comments. In subsequent posts, we plan to provide deeper dives into sectors that are of interest to both ourselves and others. We look forward to contributing to what feels like yet another opportunity to be at the front door of history-making companies.
· Present a discussion of what team is. What type(s) of team do .docxalinainglis
· Present a discussion of what team is. What type(s) of team do you have in your organization?
· What is meant by the “internal processes” of a team? Why is it important to manage both the internal processes and external opportunities/constraints of a team?
Note: It should contain 3 pages with citation included and References should be in APA format
.
· Presentation of your project. Prepare a PowerPoint with 8 slid.docxalinainglis
· Presentation of your project. Prepare a PowerPoint with 8 slides illustrating the role in Interdisciplinary care for our aging population (Outcome 1,2,3,4,5) (6 hours).
Make sure it has nursing diagnosis
make sure it's a APA STYLE
make sure it has reference
.
· Prepare a research proposal, mentioning a specific researchabl.docxalinainglis
· Prepare a research proposal, mentioning a specific researchable title, background, Review of literature, research questions and objectives, methodology, resources and references.
· Prepare the Gant Chart to indicate the timescale for completing the proposal
RESEARCH PROPOSAL OUTLINE
1. Title
2. Background (introduction)
3. Review of literature
4. Research Questions & objectives
5. Methodology
4.1 Research Design
4.2 Participants
4.3 Techniques
4.4 Ethical Considerations
6. Time scale (Gantt chart)
7. Resources
8. References
.
· Previous professional experiences that have had a profound.docxalinainglis
· Previous professional experiences that have had a profound effect:
Before I started college, my parents wanted me to excel in healthcare knowing its high demand. The path to health care and eventual employment in a notable hospital setting seemed less risky than the one of Art and design. A few networking events and some LinkedIn leads later I came across an opportunity to start a Biomedical Engineering startup in South Florida with two investors willing to mentor me in a field I wasn’t familiar with. Luckily this new venture I was undertaking had a somewhat speculative risk. I made sure they were mostly in my favor thanks to the connections my investors had in the industry, and my background in health care. My hard work and diligence paid off slowly teaching myself the mechanics of the industry through the engineers we would hire. I remember watching how they would calibrate medical devices from pumps to life-saving equipment in awe. And with the same tenacity absorbing all the medical jargon in the Biomed world. I was adamant about doing my best and being the best even if that meant leaving my creative dreams behind. We started the business almost four years ago as a small minority women-owned business in the corner of a business complex. Five biomedical engineers and six technicians later we are still scaling and have since expanded our office from that small corner to the entire business building. Currently, we are a nationally recognized Biomed and medical supply company for some of the largest healthcare facilities in both the civilian and government sector. Yet through out all the achievement I felt the only sense of raw passion was when I collaborated with my engineers in delivering problem solving services to the hospital we served. Their job was to service devices in a hospital at a micro level and I would bridge that gap by identifying problems and finding opportunities in product service at a large-scale. Working hand in hand with the engineers in articulating the hospital need for turnover I would use design through projective process in creating a plan that would work in the most practical sense.
This moment of free creative problem solving was the highlight of my job. It gave me an opportunity to realize that although at times my approach was unconventional it would work. My systematic methodology I had adapted from working with engineers and my innate out of the box idea would come to together to solve some of the most challenging issues. Little did I know that this minor stroke of self-awareness would one day have me consider architecture.
Your current strengths and weaknesses in reaching your goal.
I realized my creative talents in design could not flourish under the pressures of work. I would constantly leave the office feeling drained in a profession my heart was not set on. In this I learned my weakness was how far I was willing to neglect the urge for creativity, and in exchange it jeopardized my sense of purpos.
· Please select ONE of the following questions and write a 200-wor.docxalinainglis
· Please select ONE of the following questions and write a 200-word discussion.
1. The Federal Reserve Board has enormous power over people's lives with its power to set and influence policy that determines monetary policy in the United States. Do you think this is proper for a democracy to provide the FED with so such power? How is the FED held accountable?
2. Do you believe that the roles of government should change from era to era, or should the US determine the proper role of government and try to maintain it through the ages?
3. Explain Executive Power in the US Constitution and briefly the process by which it developed over the years. Do you think the Framers should have been more specific about the powers of the presidency? Should the country try to make it more specific today?
· Please read the discussions below and write a 100 to 150 words respond for each discussion.
1. (question 1) I do believe that this is proper for a democracy to provided such power to FED. Without the FED the economy would face two problem, which are recessions that can lead into depressions, and inflation. The FED needs to have power to endures the country will not fall into economic trouble. In class professor McWeeney stated that the FED has the power to increase interest rates to control inflation, and the power to decrease interest rates so that theres more money in the economy to create more business and jobs so there wont be a recession. The FED needs these power to try to put the economy in a sweet spot. The FED is held accountable to the government and public. The FED does this by being transparent and giving and annual report to congress.
2. (question 2) I believe that the roles of the government should be changed from era to era. My main reason the roles should be changed is because major changes are constantly happening in the field of law. For example, the progressive era and modern era had several economic reforms that had taken place including increased regulation, anti-trust activity, application of an income tax, raise on social insurance programs, etc. Throughout this time, the government gave women the right to vote. I believe the economy is growing rapidly due to employment relationships, better technology, education, new polices, social and economic changes. This is the reason why the roles of the government should be changed from era to era.
Communicating professionally and ethically is one of the
essential skill sets we can teach you at Strayer. The following
guidelines will ensure:
· Your writing is professional
· You avoid plagiarizing others, which is essential to writing ethically
· You give credit to others in your work
Visit Strayer’s Academic Integrity Center for more information.
Winter 2019
https://pslogin.strayer.edu/?dest=academic-support/academic-integrity-center
Strayer University Writing Standards 2
� Include page numbers.
� Use 1-inch margins.
� Use Arial, Courier, Times New Roman.
· Please use Firefox for access to cronometer.com16 ye.docxalinainglis
· Please use
Firefox
for access to
cronometer.com
16 years old Female. Born on 01/05/2005. Height 5’4, 115 lbs
· Menu Analysis
DAY 2
Quesadilla
Fiesta beans
Salsa
Sour cream
Corn
Fruit
· Submit Screen Shot for Nutrient report for assignment menu(s)
§ Right click to use “Take a screenshot” feature (Firefox only) on specific date you want to have screen shot to save/obtain.
Nutrient Report and Food Intake
· The paper must include all required elements including
each
Cronometer, Excess, Deficit, and
G
roup
Summary of your nutrient report and food intake
Excess
:
· List
ALL
Nutrients that are
Over 100% (Except Amino Acids)
on Cronometer Nutrient report
· List
Food Items
on menu that may reflect excess nutrients on Cronometer Nutrient report
Deficit
:
· List
ALL
Nutrients that are
Less than 50% (Except Amino Acids)
on Cronometer Nutrient report
· List
Food Items
on menu that may reflect deficit nutrients on Cronometer Nutrient report
Summary
:
§ Summarize your overall in 1-2 paragraph, evaluation and conclusion of nutrients and food items on the menu.
.
· Please share theoretical explanations based on social, cultural an.docxalinainglis
· Please share theoretical explanations based on social, cultural and environmental factors, which may contribute to victimization from criminal behavior
· Based on your personal or professional experience share your thoughts on what coping mechanism (internal and external), and support processes can be considered if becoming a crime victim?
.
· If we accept the fact that we may need to focus more on teaching.docxalinainglis
· If we accept the fact that we may need to focus more on teaching civic responsibility, how can this work with both "policies and people" in the school where you become principal?
In order to increase the focus on teaching civic responsibility, policy must be in place supporting this goal. A school leader must be willing to invest time and funds into planning, training, and implementing curriculum that emphasizes civics. Staff members may have different levels of interest, understanding, and comfort when it comes to incorporating civic responsibility into their teaching, so providing professional development in this area would be critical. The strategic plan for integrating civic responsibility and the expectations for each teacher’s involvement should be clearly communicated. In addition to establishing these policies regarding civics education, the school leader and teachers must work to model civic responsibility. In addition to sharing his or her vision for increased focus on civics with the school staff, the school leader should work to share his or her vision with school board members, other district personnel including the superintendent, and the greater community. Lastly, school leaders need to support their staff as they take risks and work to develop and implement new activities, discussions, and projects centered around teaching civic responsibility.
· How will you lead your staff in this part of the curriculum?
In leading my staff in this part of the curriculum, I would work to secure professional development related to civic responsibility, as this is not an area that I have expertise in, and work as a staff to develop our vision and implementation goals. I would also provide examples such as the work of the exemplar schools described in the article in integrating civic responsibility across all content areas, implementing service-learning programs, and creating partnerships between the school and community. I would also work within PLTs to develop ways that civic responsibility could be incorporated within their curriculum and remind them that they have my support as they embark on this endea
Required Resources
Text
Baack, D. (2017). Organizational behavior (2nd ed.). Retrieved from https://ashford.content.edu
· Chapter 8: Leadership
Articles
Austen, B. (2012, July 23). The story of Steve Jobs: An inspiration or a cautionary tale? (Links to an external site.)Links to an external site.Wired. Retrieved fom http://www.wired.com/2012/07/ff_stevejobs/all/
Charan, R. (2006). Home Depot’s blueprint for culture change. Harvard Business Review. 84(4), 60-70. Retrieved from EBSCOhost database
Grow, B., Foust, D., Thornton, E., Farzad, R., McGregor, J., & Zegal, S. (2007). Out at home depot (Links to an external site.)Links to an external site.. Business Week.
Retrieved from http://www.businessweek.com/stories/2007-01-14/out-at-home-depot
Stark, A. (1993). What's the matter with business ethics? Harvard Business Review, 71(3), 38-48. .
· How many employees are working for youtotal of 5 employees .docxalinainglis
· How many employees are working for you?
total of 5 employees
· How did you get your idea or concept for the business?
· CLEAR is a reflection by transparency, manifest and understood, our product is new in the market, and it follows the international fashion style that suits every lady,
· A bag represents you, bags are women priority, and its something women can't go outside without, our bags differ by other bags is that its clear, which is the new form of fashion style, we also made customization on bags so it is a remarkable tool that can lead to higher profit through increased customer satisfaction and loyalty, although it brings for our small factory a lot of work, the good work pays off, we entered these industry because there are no locals designer in it and we started in2016 and hope to reach a global position.
· What do you look for in an employee? (the most important things)
- helping customers on their choice
-stylist
- team work spirit
- deciplant & committed to work ethics
- Good Communication skills
- Ability to manage the conflict
- Is the company socially responsible?
Yes , we try our best to make some of sell go for the charity and especially to help poor people get new clothes , we donate 5% yearly in our total sales .
· What made you choose your current location?
Main criterias for selecting current location :
1- Close to the residence areas , meliha road, near the university of Sharjah
2- Easy access to the visiting customers
3- Its in a big avenue that has many designers and clothing brands
4- Easy to pick up from the shop
5- Serve a big segmentation
· What are your responsibilities as a business owner?
the main responsibility of the Business owner is to maintain the successful of the business, but in order to achieve this have to do so many tasks like:
1- Hire and manage the staff
2- Oversees the financial status , weekly and monthly .
3- Create marketing plans of how the business will be in a year
4- Update the website and chick the system
5- Rent fees
6- Make sure how customers are satisfied by the product
7- Make sure about product quality and chick up
8- Maintain a healthy work environment
9- Develop and fine tune the business according to the market situation
· How do you motivate your employees?
We follow different methods for motivations
1- Personal appreciation for individuals for hard work or personal achievements
2- Kind words
3- Flexible working hours
4- Daily bonus if achieved the daily sales targets
5- Giving the new collection bags as a gift before dropping it to the market , it makes them feel appreciated and special
· Can you give me an example of any challenges or problems that you faced with your shop and employees?
Hiring the right employee is always challenge, last Ramadan we had a huge unread massage for eid orders as well, our customer started to get angry and write under the inestgram comments that there was no respond for online shopping , we struggl.
· How should the risks be prioritized· Who should do the priori.docxalinainglis
· How should the risks be prioritized?
· Who should do the prioritization of the project risks?
· How should project risks be monitored and controlled?
· Who should develop risk responses and contingency plans?
· Who should own these responses and plans?
Introduction
This week, we will explore risk management. Risk management is one of those areas in project management that separates good project managers from great project managers. A good project manager makes risk management an integral part of every phase of project work. Risks are identified, prioritized, and understood. There are clear responsibilities within the team as to whose is responsible for implementing a risk response to reduce the impact should it occur. So let's get started.
What is Risk?
*Risk: An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
Risks can be positive, meaning beneficial to the project, or they can be negative, meaning detrimental to the project.
Many students have a difficult time visualizing positive risks. A positive risk is an opportunity that may increase the probability of success, the return on investment, or the benefits of the project. They may also be ways to reduce project costs or ways to complete the project early. There may even be methods to improve project quality or overall performance. These are all examples of positive risks.
A negative risk can be easier to understand. It is the possibility that something will go wrong, a threat to the success of the project. It is important to remember that a risk is a possibility, not a fact. It is a potential problem. At GettaByte Software, there is the potential that a power outage would occur during data transfer. The potential exists that a key resource could become unavailable due to some unforeseen circumstance, like illness. Those are threats to the success of the project.
When buying a house to renovate, there are potential risks with respect to plumbing, wiring, the foundation, and so on.
A project manager needs to consider trying to make positive risks happen while trying to prevent negative ones from occurring. To do this, a project manager can take a proactive approach to risk management. This means he or she plans a risk response should it look as though the risk will become a reality. In this way, everyone knows exactly how to prepare and respond to the risk once it does become an issue.
The Risk Management Process
A project has both good and bad risks, which are referred to as positive and negative risks or opportunities and threats. For positive risks or opportunities, the project manager can choose from a range of risk responses. For threats, a project manager has a similar range of choices. The following, as described in the PMBOK® Guide, are the risk management processes.
Plan Risk Management:
· Risk Strategy
· Defines the general approach to managing risk on the project
· Methodology
· Defines the specific, tools, .
· How does the distribution mechanism control the issues address.docxalinainglis
· How does the distribution mechanism control the issues addressed in Music and TV, when in regards to race/ethnicity?
· Determine who controls the distribution of Music and TV, when in regards to race/ethnicity?
· In what ways does the controller of distribution affect the shared experience of the audience and community? Keep in mind that a community may be local, regional, national, or global. Be specific in your discussion.
.
· Helen Petrakis Identifying Data Helen Petrakis is a 5.docxalinainglis
·
Helen Petrakis Identifying Data: Helen Petrakis is a 52-year-old, Caucasian female of Greek descent living in a four-bedroom house in Tarpon Springs, FL. Her family consists of her husband, John (60), son, Alec (27), daughter, Dmitra (23), and daughter Althima (18). John and Helen have been married for 30 years. They married in the Greek Orthodox Church and attend services weekly.
Presenting Problem: Helen reports feeling overwhelmed and “blue.” She was referred by a close friend who thought Helen would benefit from having a person who would listen. Although she is uncomfortable talking about her life with a stranger, Helen says that she decided to come for therapy because she worries about burdening friends with her troubles. John has been expressing his displeasure with meals at home, as Helen has been cooking less often and brings home takeout. Helen thinks she is inadequate as a wife. She states that she feels defeated; she describes an incident in which her son, Alec, expressed disappointment in her because she could not provide him with clean laundry. Helen reports feeling overwhelmed by her responsibilities and believes she can’t handle being a wife, mother, and caretaker any longer.
Family Dynamics: Helen describes her marriage as typical of a traditional Greek family. John, the breadwinner in the family, is successful in the souvenir shop in town. Helen voices a great deal of pride in her children. Dmitra is described as smart, beautiful, and hardworking. Althima is described as adorable and reliable. Helen shops, cooks, and cleans for the family, and John sees to yard care and maintaining the family’s cars. Helen believes the children are too busy to be expected to help around the house, knowing that is her role as wife and mother. John and Helen choose not to take money from their children for any room or board. The Petrakis family holds strong family bonds within a large and supportive Greek community.
Helen is the primary caretaker for Magda (John’s 81-year-old widowed mother), who lives in an apartment 30 minutes away. Until recently, Magda was self-sufficient, coming for weekly family dinners and driving herself shopping and to church. Six months ago, she fell and broke her hip and was also recently diagnosed with early signs of dementia. Helen and John hired a reliable and trusted woman temporarily to check in on Magda a couple of days each week. Helen would go and see Magda on the other days, sometimes twice in one day, depending on Magda’s needs. Helen would go food shopping for Magda, clean her home, pay her bills, and keep track of Magda’s medications. Since Helen thought she was unable to continue caretaking for both Magda and her husband and kids, she wanted the helper to come in more often, but John said they could not afford it. The money they now pay to the helper is coming out of the couple’s vacation savings. Caring for Magda makes Helen think she is failing as a wife and mother because she no longer ha.
· Global O365 Tenant Settings relevant to SPO, and recommended.docxalinainglis
· Global O365 Tenant Settings relevant to SPO, and recommended settings
Multi Factor Authentication
Sign In Page customization
External Sharing
· Global SPO settings and recommended settings
Manage External Sharing
Site Creation Settings
· Information Architecture and Hub Site Management
Site Structure
Create and manage Hub Site
· Site Administration
Create Sites
Delete Sites
Restored Deleted Sites
Manage Site Admins
Manage Site creation
Manage Site Storage limits
Change Site Address
· Managed Metadata (Term Store)
Introduction
Setup new term group sets
Create and manage Terms
Assign roles and permission to Manage term sets
· Search
Search Content
Search Center
Crawl Site content
Remove Search results
Search Results
Manage Search Query
Manage Query Rules
Manage Query Suggestion
Manage result sources
Manage search dictionaries
· Security (identity – internal / external, and authorization – management of platform level)
Control Access of Unmanaged devices
Control Access of Network location
Authentication
Safeguarding Data
Sign out inactive users
· Governance – e.g. labels, retention, etc.
Data Classification
Create and Manage labels
· Data loss prevention
· Create and Manage security policies
· Devices Security policies
· App permission policies
· Data Governance
· Retention Policies
· Monitoring and alerting
Create and Manage Alerts
Alert Policies
· SharePoint Migration Tool
Overview
· Operational tasks for managing the health of the environment, alerting, etc.
File Activity report
Site usage report
Message Center
Service Health
· Common issue resolution and FAQ
.
· Focus on the identified client within your chosen case.· Analy.docxalinainglis
· Focus on the identified client within your chosen case.
· Analyze the case using a systems approach, taking into consideration both family and community systems.
· Complete and submit the “Dissecting a Theory and Its Application to a Case Study” worksheet based on your analysis
Helen Petrakis Identifying Data: Helen Petrakis is a 52-year-old, Caucasian female of Greek descent living in a four-bedroom house in Tarpon Springs, FL. Her family consists of her husband, John (60), son, Alec (27), daughter, Dmitra (23), and daughter Althima (18). John and Helen have been married for 30 years. They married in the Greek Orthodox Church and attend services weekly.
Presenting Problem: Helen reports feeling overwhelmed and “blue.” She was referred by a close friend who thought Helen would benefit from having a person who would listen. Although she is uncomfortable talking about her life with a stranger, Helen says that she decided to come for therapy because she worries about burdening friends with her troubles. John has been expressing his displeasure with meals at home, as Helen has been cooking less often and brings home takeout. Helen thinks she is inadequate as a wife. She states that she feels defeated; she describes an incident in which her son, Alec, expressed disappointment in her because she could not provide him with clean laundry. Helen reports feeling overwhelmed by her responsibilities and believes she can’t handle being a wife, mother, and caretaker any longer.
Family Dynamics: Helen describes her marriage as typical of a traditional Greek family. John, the breadwinner in the family, is successful in the souvenir shop in town. Helen voices a great deal of pride in her children. Dmitra is described as smart, beautiful, and hardworking. Althima is described as adorable and reliable. Helen shops, cooks, and cleans for the family, and John sees to yard care and maintaining the family’s cars. Helen believes the children are too busy to be expected to help around the house, knowing that is her role as wife and mother. John and Helen choose not to take money from their children for any room or board. The Petrakis family holds strong family bonds within a large and supportive Greek community.
Helen is the primary caretaker for Magda (John’s 81-year-old widowed mother), who lives in an apartment 30 minutes away. Until recently, Magda was self-sufficient, coming for weekly family dinners and driving herself shopping and to church. Six months ago, she fell and broke her hip and was also recently diagnosed with early signs of dementia. Helen and John hired a reliable and trusted woman temporarily to check in on Magda a couple of days each week. Helen would go and see Magda on the other days, sometimes twice in one day, depending on Magda’s needs. Helen would go food shopping for Magda, clean her home, pay her bills, and keep track of Magda’s medications. Since Helen thought she was unable to continue caretaking for both Magda and her husba.
· Find current events regarding any issues in public health .docxalinainglis
·
Find current events
regarding any issues in public health Anything about infectious diseases ( Don not pick one disease, you have you dig more infectious diseases)
· These current events can be articles, news reports, outbreaks, videos.
· Type down brief 2 sentences describing the event (don’t copy paste title)
· You should have
at least 7 diseases in
total
· No Malaria disease events, please
.
· Explore and assess different remote access solutions.Assig.docxalinainglis
· Explore and assess different remote access solutions.
Assignment Requirements
Discuss with your peers which of the two remote access solutions, virtual private networks (VPNs) or hypertext transport protocol secure (HTTPS), you will rate as the best. You need to make a choice between the two remote access solutions based on the following features:
· Identification, authentication, and authorization
· Cost, scalability, reliability, and interoperability
.
· FASB ASC & GARS Login credentials LinkUser ID AAA51628Pas.docxalinainglis
· FASB ASC & GARS Login credentials
Link
User ID: AAA51628
Password: qc3A9WS
· FASB Codification Learning Guide
· COSO Login
User ID: aaa72751
Password: JhF3a2G
Copyright 2018 Governmental Accounting Standards Board
Foreword
This content collection contains all the original pronouncements that currently constitute the body of state and local governmental accounting and financial reporting standards and guidelines. Specifically, the content collection incorporates these pronouncements:
• Governmental Accounting Standards Board (GASB) Statements, Interpretations, Concepts Statements, Technical Bulletins, and Implementation Guides issued through December 31, 2018
• National Council on Governmental Accounting (NCGA) Statements and Interpretations currently in force and NCGA Concepts Statement 1
• American Institute of Certified Public Accountants (AICPA) 1974 Industry Audit Guide and related Statements of Position continued in force when the GASB began operations
• GASB Suggested Guidelines for Voluntary Reporting issued through December 31, 2018.
Unless otherwise noted, original pronouncements in this infobase are presented in their entirety, with the exception of appendices containing codification instructions, which have been omitted. Pronouncements may include one or more nonauthoritative sections. Authoritative guidance is presented in the main body of each pronouncement. Glossaries also are considered to be authoritative. All other appendices (for example, bases for conclusions and illustrations) and summaries are nonauthoritative. In addition, the entire Suggested Guidelines for Voluntary Reporting, SEA Performance Information, is nonauthoritative.
A status page at the beginning of each pronouncement identifies subsequent changes (amendments and supersessions) to the pronouncement as well as the source of those changes. The status page also identifies (a) other pronouncements affected by that pronouncement, (b) interpretive pronouncements clarifying that pronouncement, (c) the effective date, and (d) the principal sections of the GASB Codification of Governmental Accounting and Financial Reporting Standards in which the pronouncement is incorporated.
Within each pronouncement, a shading technique is used to identify amended or superseded standards. All terms, sentences, and paragraphs that have been deleted or superseded by subsequent pronouncements are shaded. Sentences or paragraphs that have been amended by the addition of terms, sentences, or new footnotes are marked with a vertical solid bar ( | ) in the left margin alongside the amended material. When standards are amended or superseded, relevant nonauthoritative appendices are also modified to reflect those changes.
Appendix A is a reproduction of GASB Codification Appendix F, "Finding List of Original Pronouncements." It shows where each paragraph of each original pronouncement may be found in the Codification, or whether the paragraph contains.
· Due Sat. Sep. · Format Typed, double-spaced, sub.docxalinainglis
·
Due:
Sat. Sep.
·
Format
: Typed, double-spaced, submitted as a word-processing document.
12 point, text-weight font, 1-inch margins.
·
·
Length
: 850 - 1000 words (approx. 3-4 pages)
·
·
Overview
: In Unit 1 and Unit 2, we focused on ways that writers build ideas from personal memories and experiences into interesting narratives that convey significance and meaning to new audiences. In Unit 3, we have been discussing how writers invent ideas by interacting with other communities through firsthand observation and description. These relationships and discoveries can give writers insight into larger concepts or ideas that are valuable to specific communities. For this writing project, you will use firsthand observations and discoveries to write about people and the issues that are important to them. Your evidence will come from the details you observe as you investigate other people, places, and events.
Assignment
Write an ethnography essay focused on a particular group of people and the routines or practices that best reveal their unique significance as a group.
An ethnography is a written description of a particular cultural group or community. For the ethnography essay, you can follow the guidelines in the CEL, p. 110-112. Your ethnography should:
· Begin with your observations of a particular group. Plan to observe this group 2-3 times, so that you can get a better sense of their routines, habits, and practices.
o
Note: if you cannot travel to observe a group or community, plan to observe that community digitally through website documents, social media, and/or emails exchanged with group members.
· Convey insight into the characteristics that give the group unique significance.
· Provide context and background, including location, values, beliefs, histories, rituals, dialogue, and any other details that help convey the group's significance.
· Follow a deliberate organizational pattern that focuses on one or more insights about the group while also providing details and information about the group's culture and routine
As you look back over your observations and notes, remember that your essay should do more than simply relate details without any larger significance. Ethnographies also draw out the unique, interesting, and special qualities of a group or culture that help readers connect to their values or motivations. Note: Please keep in mind that writing in this class is public, and anything you write about may be shared with other students and instructors. Please only write about details that you are comfortable making public within our classroom community.
Assignment Components
In order to finish this project, we will work on the following parts together over the next few weeks:
Draft
: Include at least one pre-revised draft of your essay. The draft needs to meet the word count of 850 words and must also apply formatting requirements for the project—in other words it must be complete. Make sure that your.
· Expectations for Power Point Presentations in Units IV and V I.docxalinainglis
· Expectations for Power Point Presentations in Units IV and V
I would like to provide information about what needs to be included in presentations. Please review the rubric prior to submitting any assignment. If you don't know where to find this, please contact me.
1. You need a title slide.
2. You need an overview of the presentation slide (slide after the title slide). This is how you would organize a presentation if you were presenting it at work.
3. You need a summary slide (before the reference slide); same reason as above.
4. Please do not forget to cite on slides where you are writing about something related to what you have read. Please consider each slide a paragraph. You can cite on the slides or in the notes. If you do not cite, you will not get credit for the slide.
- Direct quotes should not be used in this presentation as they are not analysis.
5. Remember, all I can evaluate is what you submit, so please consider using notes to explain what you are writing in further detail. Bullets are great and you can use these but then provide more detail in the notes.
6. Graphics - Please include graphics/charts/graphs as this is evaluated in the rubric (quality of the presentation).
7. References - For all references, you need citations. For all citations, you need references. They must match. All must be formatted using APA requirements. Please review the Quick Reference Guide that was posted in the announcements.
Please never hesitate to email me with any questions. If you need further clarification about feedback or if you do not agree with any of the feedback, please contact me. My door is always open.
Learning Preferences of Millennials in a Knowledge-Based
Environment
Giora Hadar
University of Groningen (RuG), The Netherlands
[email protected]
Abstract: This paper discusses how understanding intergenerational knowledge transfer can improve knowledge transfer in
large organizations. The U.S. Federal Aviation Administration (FAA) risks significant loss of institutional human capital as huge
numbers of senior controllers retire. To perform their job, air traffic controllers must develop in-depth knowledge, including
tacit knowledge typically acquired over many years, so they can quickly make accurate decisions while dealing with the many
air traffic control (ATC) situations that arise. The only pool available to replace the retiring controllers is the Millennials. This
group, the best educated ever, has its own attitudes toward life, work, and training as well as technology use. Because
knowledge transfer and training involve both technology and human interaction, this paper explores not only the role of
technology but also that of intergenerational communications in both the training and operational environments of a highly
technical workplace.
Keywords: knowledge transfer, training, tacit knowledge, mentoring, mobile smart devices, communications
1. Introduction
Intergenerational knowledge transfe.
· Due Friday by 1159pmResearch Paper--IssueTopic Ce.docxalinainglis
·
Due
Friday by 11:59pm
Research Paper--
Issue/Topic:
Celebrity, Celebrity Culture and the effects on society
1500 or more words
MLA format
Must include research from
at least 4
scholarly sources (use HCC Library and GoogleScholar) I have attached 20 pdf with scholarly sources to choose from. 2 were provided from teacher Celebrity Culture Beneficial and The Culture of Celebrity. I have also attached a Word Document Research Paper Guide. Please read all the way to bottom more instructions at the bottom. Disregards Links and external cites those are the PDFs.
Celebrity
is a
popular cultural Links to an external site.
phenomenon surrounding a well-known person. Though many
celebritiesLinks to an external site.
became famous as a result of their achievements or experiences, a person who obtains celebrity status does not necessarily need to have accomplished anything significant beyond being widely recognized by the public. Some celebrities use their
fameLinks to an external site.
to reach the upper levels of social status. Popular celebrities can wield significant influence over their fans and followers. Cultural historian and film critic Neal Gabler has described the phenomenon of celebrity as a process similar to performance art in which the celebrity builds intrigue and allure by presenting a manufactured image to the public. This image is reinforced through
advertisingLinks to an external site.
endorsements, appearances at high-profile events, tabloid gossip, and
social mediaLinks to an external site.
presence.
In previous decades, celebrity status was mainly reserved for film stars,
televisionLinks to an external site.
personalities,
entertainersLinks to an external site.
, politicians, and
athletesLinks to an external site.
. Contemporary celebrities come from diverse fields ranging from astrophysics to auto mechanics, or they may simply be famous for their lifestyle or
InternetLinks to an external site.
antics. Social media platforms such as YouTube, Twitter, and Instagram provide the means for previously unknown individuals to cultivate a significant following.
Celebrification
is the process by which someone or something previously considered ordinary obtains stardom. Previously commonplace activities, such as practicing
vegetarianismLinks to an external site.
or wearing white t-shirts, can undergo celebrification when associated with a famous person or major event.
Celebrity culture
exists when stardom becomes a pervasive part of the social order,
commodified
as a commercial brand. Celebrities’ personal lives are recast as products for consumption, with a dedicated fan base demanding information and unlimited access to the celebrity’s thoughts and activities. A niche community such as a fan base can be monetized through effective marketing that links brand loyalty to the consumer’s identity. Fans may be more likely to purchase a product or attend an event if they feel that doing so strengthens their.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
7. (TCOs E and F) Answer Parts A, B, and C completely. (40 points).docx
1. 7. (TCOs E and F) Answer Parts A, B, and C completely. (40
points)
(Part A) Suppose your local Congress representative suggests
that the federal government should not intervene in the baseball
ticket market to stop runaway price increases. Would you say
that this view basically supports the Keynesian or the
Monetarist school of thought? Why? What position would the
opposing school of thought take on this issue? (Be brief—you
can answer this in two or three brief paragraphs.) (15 points)
(Part B) Any change in the economy’s total expenditures would
be expected to translate into a change in GDP that was larger
than the initial change in spending. This phenomenon is known
as the multiplier effect. Explain how the multiplier effect
works. (10 points)
(Part C) You are told that 50 cents out of every extra dollar
pumped into the economy goes toward consumption (as opposed
to saving). Estimate the GDP impact of a positive change in
government spending that equals $15 billion. (15 points) (Points
: 40)
STEPHEN A. ROSS
Massachuset ts Ins t i tu te o f Technolog y
RANDOLPH W. WESTERFIELD
Univer s i t y o f Southern Ca l i fo rn ia
BRADFORD D. JORDAN
Univer s i t y o f Kentucky
3. availability of the wide range of data from Statistics
Canada can be obtained from Statistics Canada’s Regional
Offices, its World Wide Web site at http://www.statcan.gc.ca
and its toll-free access number 1-800-263-1136.
The Internet addresses listed in the text were accurate at the
time of publication. The inclusion of a Web site does not
indicate an endorsement by the authors or McGraw-Hill
Ryerson, and McGraw-Hill Ryerson does not guarantee the
accuracy of information presented at these sites.
ISBN-13: 978-0-07-105160-6
ISBN-10: 0-07-105160-0
1 2 3 4 5 6 7 8 9 0 QGV 1 9 8 7 6 5 4 3
Printed and bound in the United States of America.
Care has been taken to trace ownership of copyright material
contained in this text; however, the publisher will
welcome any information that enables it to rectify any reference
or credit for subsequent editions.
Director of Product Management: Rhondda McNabb
Senior Product Manager: Kimberley Veevers
Marketing Manager: Jeremy Guimond
Senior Manager, Development: Kelly Dickson
Senior Product Developer: Maria Chu
Senior Product Team Associate: Christine Lomas
Photo/Permissions Research: Maria Chu
Supervising Editor: Joanne Limebeer
Copy Editors: Armour Robert Templeton, Bradley T.
Smith/First Folio Resource Group Inc.
Production Coordinator: Tammy Mavroudi
Cover Design: Word & Image
Cover Images: Modern architecture (Vetta archives), columns
4. (Philip and Karen Smith)
Interior Design: Word & Image
Page Layout: Tom Dart/First Folio Resource Group Inc.
Printer: Quad/Graphics Versailles
Library and Archives Canada Cataloguing in Publication
Fundamentals of corporate finance / Stephen A. Ross …
[et al.].—8th Canadian ed.
Includes bibliographical references and indexes.
ISBN 978-0-07-105160-6
1. Corporations—Finance—Textbooks. I. Ross,
Stephen A
HG4026.F86 2013 658.15 C2012-906997-3
00Ross_FrontMatter_FIN.indd ii00Ross_FrontMatter_FIN.indd
ii 12-12-20 13:0012-12-20 13:00
ABOUT THE AUTHORS
Stephen A. Ross
Sloan School of Management, Franco Modigliani Professor
of Finance and Economics, Massachusetts Institute of
Technology
Stephen A. Ross is the Franco Modigliani Professor
of Finance and Economics at the Sloan School of
Management, Massachusetts Institute of Technology.
One of the most widely published authors in finance
and economics, Professor Ross is recognized for his
work in developing the Arbitrage Pricing Theory and
5. his substantial contributions to the discipline through
his research in signalling, agency theory, option pricing,
and the theory of the term structure of interest rates,
among other topics. A past president of the American
Finance Association, he currently serves as an associate
editor of several academic and practitioner journals. He
is a trustee of CalTech.
Randolph W. Westerf ield
Marshall School of Business, University of Southern
California
Randolph W. Westerfield is Dean Emeritus of the
University of Southern California’s Marshall School
of Business and is the Charles B. Thornton Professor
of Finance.
He came to USC from the Wharton School,
University of Pennsylvania, where he was the chairman
of the finance department and a member of the finance
faculty for 20 years. He is a member of several public
company boards of directors, including Health
Management Associates, Inc., William Lyons Homes,
and the Nicholas Applegate growth fund. His areas of
expertise include corporate financial policy, investment
management, and stock market price behaviour.
Bradford D. Jordan
Gatton College of Business and Economics, Professor of
Finance and holder of the Richard W. and Janis H. Furst
Endowed Chair in Finance, University of Kentucky
Bradford D. Jordan is Professor of Finance and holder
of the Richard W. and Janis H. Furst Endowed Chair in
Finance at the University of Kentucky. He has a long-
standing interest in both applied and theoretical issues
in corporate finance and has extensive experience
6. teaching all levels of corporate finance and financial
management policy. Professor Jordan has published nu-
merous articles on issues such as cost of capital, capital
structure, and the behaviour of security prices. He is a
past president of the Southern Finance Association,
and he is co-author (with Thomas W. Miller, Jr.) of
Fundamentals of Investments: Valuation and
Management, 4e, a leading investments text, published
by McGraw-Hill/Irwin.
Gordon S. Roberts
Schulich School of Business, York University, Canadian
Imperial Bank of Commerce Professor of Financial Services
Gordon S. Roberts is Canadian Imperial Bank of
Commerce Professor of Financial Services at the
Schulich School of Business, York University. His exten-
sive teaching experience includes finance classes for un-
dergraduate and MBA students, executives, and bankers
in Canada and internationally. Professor Roberts con-
ducts research on the pricing of bank loans and the reg-
ulation of financial institutions. He has served on the
editorial boards of several Canadian and international
academic journals. Professor Roberts has been a consul-
tant to a number of regulatory bodies responsible for
the oversight of financial institutions and utilities.
00Ross_FrontMatter_FIN.indd
iii00Ross_FrontMatter_FIN.indd iii 12-12-20 13:0012-12-20
13:00
BRIEF CONTENTS
PREFACE xvii
7. P A R T 1
OVERVIEW OF CORPORATE FINANCE 1
1 Introduction to Corporate Finance 1
2 Financial Statements, Cash Flow, and Taxes 25
P A R T 2
FINANCIAL STATEMENTS AND
LONG-TERM FINANCIAL PLANNING 53
3 Working with Financial Statements 53
4 Long-Term Financial Planning and
Corporate Growth 84
P A R T 3
VALUATION OF FUTURE CASH FLOWS 111
5 Introduction to Valuation: The Time
Value of Money 111
6 Discounted Cash Flow Valuation 129
7 Interest Rates and Bond Valuation 165
8 Stock Valuation 196
P A R T 4
CAPITIAL BUDGETING 220
9 Net Present Value and Other
Investment Criteria 220
8. 10 Making Capital Investment Decisions 250
11 Project Analysis and Evaluation 288
P A R T 5
RISK AND RETURN 317
12 Lessons from Capital Market History 317
13 Return, Risk, and the Security Market Line 346
P A R T 6
COST OF CAPITAL AND LONG-TERM
FINANCIAL POLICY 387
14 Cost of Capital 387
15 Raising Capital 423
16 Financial Leverage and Capital
Structure Policy 454
17 Dividends and Dividend Policy 490
P A R T 7
SHORT-TERM FINANCIAL PLANNING
AND MANAGEMENT 519
18 Short-Term Finance and Planning 519
19 Cash and Liquidity Management 552
20 Credit and Inventory Management 572
P A R T 8
TOPICS IN CORPORATE FINANCE 606
21 International Corporate Finance 606
9. 22 Leasing 634
23 Mergers and Acquisitions 655
P A R T 9
DERIVATIVE SECURITIES AND
CORPORATE FINANCE 685
24 Enterprise Risk Management 685
25 Options and Corporate Securities 711
26 Behavioural Finance: Implications for
Financial Management 750
Glossary 773
Appendix A: Mathematical Tables (available on Connect)
Appendix B: Answers to Selected End-of-Chapter
Problems (available on Connect)
Subject Index 781
Name Index 800
Equation Index 802
00Ross_FrontMatter_FIN.indd
iv00Ross_FrontMatter_FIN.indd iv 12-12-20 13:0012-12-20
13:00
CONTENTS
PREFACE xvii
P A R T 1
OVERVIEW OF CORPORATE FINANCE 1
10. C H A P T E R 1
INTRODUCTION TO CORPORATE FINANCE 1
1.1 Corporate Finance and the
Financial Manager 1
What Is Corporate Finance? 2
The Financial Manager 2
Financial Management Decisions 2
1.2 Forms of Business Organization 4
Sole Proprietorship 4
Partnership 5
Corporation 5
Income Trust 6
Co-operative (Co-op) 7
1.3 The Goal of Financial Management 8
Possible Goals 8
The Goal of Financial Management 8
A More General Goal 9
1.4 The Agency Problem and Control
of the Corporation 10
Agency Relationships 10
Management Goals 10
Do Managers Act in the Shareholders’ Interests? 10
Corporate Social Responsibility and
Ethical Investing 12
1.5 Financial Markets and the Corporation 14
Cash Flows to and from the Firm 15
Money versus Capital Markets 15
Primary versus Secondary Markets 16
1.6 Financial Institutions 18
11. 1.7 Trends in Financial Markets and
Financial Management 20
1.8 Outline of the Text 21
1.9 Summary and Conclusions 22
C H A P T E R 2
FINANCIAL STATEMENTS, CASH FLOW,
AND TAXES 25
2.1 Statement of Financial Position 25
Assets 26
Liabilities and Owners’ Equity 26
Net Working Capital 27
Liquidity 28
Debt versus Equity 28
Value versus Cost 28
2.2 Statement of Comprehensive Income 30
International Financial Reporting
Standards (IFRS) 30
Non-Cash Items 31
Time and Costs 31
2.3 Cash Flow 32
Cash Flow from Assets 32
Cash Flow to Creditors and Shareholders 34
Net Capital Spending 36
Change in NWC and Cash Flow from Assets 36
2.4 Taxes 37
Individual Tax Rates 37
Average versus Marginal Tax Rates 37
12. Taxes on Investment Income 39
Corporate Taxes 39
Taxable Income 39
Global Tax Rates 40
Capital Gains and Carry-forward and Carry-back 40
Income Trust Income and Taxation 41
2.5 Capital Cost Allowance 42
Asset Purchases and Sales 43
2.6 Summary and Conclusions 45
00Ross_FrontMatter_FIN.indd v00Ross_FrontMatter_FIN.indd
v 12-12-20 13:0012-12-20 13:00
P A R T 2
FINANCIAL STATEMENTS AND
LONG-TERM FINANCIAL PLANNING 53
C H A P T E R 3
WORKING WITH FINANCIAL STATEMENTS 53
3.1 Cash Flow and Financial Statements:
A Closer Look 54
Sources and Uses of Cash 54
The Statement of Cash Flows 56
3.2 Standardized Financial Statements 57
Common-Size Statements 57
Common-Base-Year Financial Statements:
Trend Analysis 59
13. 3.3 Ratio Analysis 60
Short-Term Solvency or Liquidity Measures 61
Other Liquidity Ratios 63
Long-Term Solvency Measures 64
Asset Management, or Turnover, Measures 65
Profitability Measures 67
Market Value Measures 68
3.4 The Du Pont Identity 71
3.5 Using Financial Statement Information 73
Why Evaluate Financial Statements? 73
Choosing a Benchmark 74
Problems with Financial Statement Analysis 75
3.6 Summary and Conclusions 75
C H A P T E R 4
LONG-TERM FINANCIAL PLANNING
AND CORPORATE GROWTH 84
4.1 What Is Financial Planning? 85
Growth as a Financial Management Goal 85
Dimensions of Financial Planning 86
What Can Planning Accomplish? 86
4.2 Financial Planning Models:
A First Look 88
A Financial Planning Model: The Ingredients 88
A Simple Financial Planning Model 89
4.3 The Percentage of Sales Approach 90
An Illustration of the Percentage of Sales Approach 90
4.4 External Financing and Growth 95
14. External Financing Needed and Growth 95
Internal Growth Rate 97
Financial Policy and Growth 98
Determinants of Growth 100
A Note on Sustainable Growth Rate Calculations 101
4.5 Some Caveats on Financial
Planning Models 103
4.6 Summary and Conclusions 103
Appendix 4 (available on Connect)
P A R T 3
VALUATION OF FUTURE CASH FLOWS 111
C H A P T E R 5
INTRODUCTION TO VALUATION:
THE TIME VALUE OF MONEY 111
5.1 Future Value and Compounding 112
Investing for a Single Period 112
Investing for More than One Period 112
A Note on Compound Growth 118
5.2 Present Value and Discounting 118
The Single-Period Case 119
Present Values for Multiple Periods 119
5.3 More on Present and Future Values 121
Present versus Future Value 121
Determining the Discount Rate 122
Finding the Number of Periods 124
15. 5.4 Summary and Conclusions 126
C H A P T E R 6
DISCOUNTED CASH FLOW VALUATION 129
6.1 Future and Present Values of
Multiple Cash Flows 129
Future Value with Multiple Cash Flows 129
Present Value with Multiple Cash Flows 131
A Note on Cash Flow Timing 134
6.2 Valuing Level Cash Flows: Annuities
and Perpetuities 135
Present Value for Annuity Cash Flows 135
vi Contents
00Ross_FrontMatter_FIN.indd
vi00Ross_FrontMatter_FIN.indd vi 12-12-20 13:0012-12-20
13:00
Future Value for Annuities 140
A Note on Annuities Due 141
Perpetuities 142
Growing Perpetuities 143
Formula for Present Value of Growing Perpetuity 144
Growing Annuity 145
Formula for Present Value of Growing Annuity 145
6.3 Comparing Rates: The Effect of
Compounding 145
Effective Annual Rates and Compounding 146
Calculating and Comparing Effective
16. Annual Rates 146
Mortgages 147
EARs and APRs 148
Taking It to the Limit: A Note on
Continuous Compounding 149
6.4 Loan Types and Loan Amortization 150
Pure Discount Loans 150
Interest-Only Loans 150
Amortized Loans 151
6.5 Summary and Conclusions 155
Appendix 6A: Proof of Annuity Present
Value Formula 164
C H A P T E R 7
INTEREST RATES AND BOND VALUATION 165
7.1 Bonds and Bond Valuation 165
Bond Features and Prices 165
Bond Values and Yields 166
Interest Rate Risk 169
Finding the Yield to Maturity 170
7.2 More on Bond Features 173
Is It Debt or Equity? 173
Long-Term Debt: The Basics 174
The Indenture 174
7.3 Bond Ratings 177
7.4 Some Different Types of Bonds 178
Financial Engineering 178
Stripped Bonds 179
17. Floating-Rate Bonds 180
Other Types of Bonds 180
7.5 Bond Markets 181
How Bonds Are Bought and Sold 181
Bond Price Reporting 182
A Note on Bond Price Quotes 182
Bond Funds 184
7.6 Inflation and Interest Rates 184
Real versus Nominal Rates 184
The Fisher Effect 185
Inflation and Present Values 186
7.7 Determinants of Bond Yields 186
The Term Structure of Interest Rates 187
Bond Yields and the Yield Curve:
Putting It All Together 188
Conclusion 189
7.8 Summary and Conclusions 190
Appendix 7A: On Duration 194
Appendix 7B (available on Connect)
C H A P T E R 8
STOCK VALUATION 196
8.1 Common Stock Valuation 196
Common Stock Cash Flows 196
Common Stock Valuation: Some Special Cases 198
Changing the Growth Rate 202
Components of the Required Return 203
18. 8.2 Common Stock Features 205
Shareholders’ Rights 205
Dividends 206
Classes of Stock 206
8.3 Preferred Stock Features 207
Stated Value 207
Cumulative and Non-Cumulative Dividends 207
Is Preferred Stock Really Debt? 208
Preferred Stock and Taxes 209
Beyond Taxes 209
8.4 Stock Market Reporting 210
Growth Opportunities 211
Application: The Price-Earnings Ratio 211
8.5 Summary and Conclusions 213
Appendix 8A: Corporate Voting 218
Contents vii
00Ross_FrontMatter_FIN.indd
vii00Ross_FrontMatter_FIN.indd vii 12-12-20 13:0012-12-20
13:00
P A R T 4
CAPITAL BUDGETING 220
C H A P T E R 9
NET PRESENT VALUE AND OTHER
INVESTMENT CRITERIA 220
19. 9.1 Net Present Value 221
The Basic Idea 221
Estimating Net Present Value 222
9.2 The Payback Rule 225
Defining the Rule 225
Analyzing the Payback Period Rule 225
Redeeming Qualities 226
Summary of the Rule 226
The Discounted Payback Rule 227
9.3 The Average Accounting Return 228
Analyzing the Average Accounting Return
Method 229
9.4 The Internal Rate of Return 230
Problems with the IRR 233
Redeeming Qualities of the IRR 237
9.5 The Profitability Index 238
9.6 The Practice of Capital Budgeting 239
9.7 Summary and Conclusions 241
Appendix 9A: The Modified Internal
Rate of Return 248
C H A P T E R 1 0
MAKING CAPITAL INVESTMENT
DECISIONS 250
10.1 Project Cash Flows: A First Look 251
Relevant Cash Flows 251
20. The Stand-Alone Principle 251
10.2 Incremental Cash Flows 251
Sunk Costs 251
Opportunity Costs 252
Side Effects 252
Net Working Capital 253
Financing Costs 253
Inflation 253
Capital Budgeting and Business Taxes in Canada 254
Other Issues 254
10.3 Pro Forma Financial Statements
and Project Cash Flows 254
Getting Started: Pro Forma Financial Statements 254
Project Cash Flows 255
Project Total Cash Flow and Value 256
10.4 More on Project Cash Flow 257
A Closer Look at Net Working Capital 257
Depreciation and Capital Cost Allowance 258
An Example: The Majestic Mulch and Compost
Company (MMCC) 259
10.5 Alternative Definitions of Operating
Cash Flow 263
The Bottom-Up Approach 263
The Top-Down Approach 264
The Tax Shield Approach 264
Conclusion 265
10.6 Applying the Tax Shield Approach
to the Majestic Mulch and Compost
Company Project 265
Present Value of the Tax Shield on CCA 266
21. Salvage Value versus UCC 268
10.7 Some Special Cases of Discounted
Cash Flow Analysis 269
Evaluating Cost-Cutting Proposals 269
Replacing an Asset 270
Evaluating Equipment with Different Lives 272
Setting the Bid Price 273
10.8 Summary and Conclusions 276
Appendix 10A: More on Inflation and
Capital Budgeting 285
Appendix 10B: Capital Budgeting with
Spreadsheets 286
C H A P T E R 1 1
PROJECT ANALYSIS AND EVALUATION 288
11.1 Evaluating NPV Estimates 288
The Basic Problem 289
Projected versus Actual Cash Flows 289
Forecasting Risk 289
Sources of Value 289
viii Contents
00Ross_FrontMatter_FIN.indd
viii00Ross_FrontMatter_FIN.indd viii 12-12-20 13:0012-12-
20 13:00
11.2 Scenario and Other What-If Analyses 290
22. Getting Started 290
Scenario Analysis 291
Sensitivity Analysis 293
Simulation Analysis 295
11.3 Break-Even Analysis 296
Fixed and Variable Costs 296
Accounting Break-Even 297
Accounting Break-Even: A Closer Look 299
Uses for the Accounting Break-Even 299
11.4 Operating Cash Flow, Sales Volume,
and Break-Even 300
Accounting Break-Even and Cash Flow 300
Cash Flow and Financial Break-Even Points 302
11.5 Operating Leverage 304
The Basic Idea 304
Implications of Operating Leverage 305
Measuring Operating Leverage 305
Operating Leverage and Break-Even 306
11.6 Managerial Options 307
11.7 Capital Rationing 310
11.8 Summary and Conclusions 311
P A R T 5
RISK AND RETURN 317
C H A P T E R 1 2
LESSONS FROM CAPITAL MARKET
HISTORY 317
23. 12.1 Returns 318
Dollar Returns 318
Percentage Returns 319
12.2 The Historical Record 321
A First Look 323
A Closer Look 324
12.3 Average Returns: The First Lesson 324
Calculating Average Returns 324
Average Returns: The Historical Record 324
Risk Premiums 325
The First Lesson 325
12.4 The Variability of Returns:
The Second Lesson 326
Frequency Distributions and Variability 326
The Historical Variance and Standard Deviation 326
The Historical Record 328
Normal Distribution 329
Value at Risk 331
The Second Lesson 331
2008 The Bear Growled and Investors Howled 331
Using Capital Market History 332
12.5 More on Average Returns 333
Arithmetic versus Geometric Averages 333
Calculating Geometric Average Returns 333
Arithmetic Average Return or Geometric
Average Return? 335
12.6 Capital Market Efficiency 335
Price Behaviour in an Efficient Market 336
The Efficient Markets Hypothesis 337
Market Efficiency—Forms and Evidence 339
24. 12.7 Summary and Conclusions 341
C H A P T E R 1 3
RETURN, RISK, AND THE SECURITY
MARKET LINE 346
13.1 Expected Returns and Variances 347
Expected Return 347
Calculating the Variance 349
13.2 Portfolios 351
Portfolio Weights 351
Portfolio Expected Returns 351
Portfolio Variance 352
Portfolio Standard Deviation and Diversification 353
The Efficient Set 355
Correlations in the Financial Crisis of 2007–2009 357
13.3 Announcements, Surprises, and
Expected Returns 359
Expected and Unexpected Returns 359
Announcements and News 359
13.4 Risk: Systematic and Unsystematic 360
Systematic and Unsystematic Risk 360
Systematic and Unsystematic Components
of Return 361
Contents ix
00Ross_FrontMatter_FIN.indd
ix00Ross_FrontMatter_FIN.indd ix 12-12-20 13:0012-12-20
13:00
25. 13.5 Diversification and Portfolio Risk 361
The Effect of Diversification: Another
Lesson from Market History 362
The Principle of Diversification 363
Diversification and Unsystematic Risk 364
Diversification and Systematic Risk 364
Risk and the Sensible Investor 364
13.6 Systematic Risk and Beta 365
The Systematic Risk Principle 366
Measuring Systematic Risk 366
Portfolio Betas 367
13.7 The Security Market Line 368
Beta and the Risk Premium 368
Calculating Beta 372
The Security Market Line 374
13.8 Arbitrage Pricing Theory And
Empirical Models 377
13.9 Summary and Conclusions 379
Appendix 13A: Derivation of the Capital
Asset Pricing Model 384
P A R T 6
COST OF CAPITAL AND LONG-TERM
FINANCIAL POLICY 387
C H A P T E R 1 4
COST OF CAPITAL 387
26. 14.1 The Cost of Capital:
Some Preliminaries 388
Required Return versus Cost of Capital 388
Financial Policy and Cost of Capital 388
14.2 The Cost of Equity 389
The Dividend Growth Model Approach 389
The SML Approach 391
The Cost of Equity in Rate Hearings 392
14.3 The Costs of Debt and Preferred Stock 393
The Cost of Debt 393
The Cost of Preferred Stock 394
14.4 The Weighted Average Cost of Capital 394
The Capital Structure Weights 395
Taxes and the Weighted Average Cost of Capital 396
Solving the Warehouse Problem and
Similar Capital Budgeting Problems 396
Performance Evaluation: Another Use of
the WACC 398
14.5 Divisional and Project Costs
of Capital 399
The SML and the WACC 399
Divisional Cost of Capital 401
The Pure Play Approach 401
The Subjective Approach 402
14.6 Flotation Costs and the Weighted
Average Cost of Capital 403
The Basic Approach 403
Flotation Costs and NPV 404
14.7 Calculating WACC for Loblaw 406
27. Estimating Financing Proportions 406
Market Value Weights for Loblaw 406
Cost of Debt 407
Cost of Preferred Shares 408
Cost of Common Stock 408
CAPM 408
Dividend Valuation Model Growth Rate 409
Loblaw’s WACC 409
14.8 Summary and Conclusions 409
Appendix 14A: Adjusted Present Value 414
Appendix 14B: Economic Value Added and
the Measurement of
Financial Performance 419
C H A P T E R 1 5
RAISING CAPITAL 423
15.1 The Financing Life Cycle of a Firm:
Early-Stage Financing and
Venture Capital 423
Venture Capital 424
Some Venture Capital Realities 424
Choosing a Venture Capitalist 424
Conclusion 425
x Contents
00Ross_FrontMatter_FIN.indd x00Ross_FrontMatter_FIN.indd
x 12-12-20 13:0012-12-20 13:00
28. 15.2 The Public Issue 425
15.3 The Basic Procedure for a New Issue 426
Securities Registration 427
Alternative Issue Methods 427
15.4 The Cash Offer 427
Types of Underwriting 428
Bought Deal 428
Dutch Auction Underwriting 429
The Selling Period 429
The Overallotment Option 430
Lockup Agreements 430
The Quiet Period 430
The Investment Dealers 430
15.5 IPOs and Underpricing 431
IPO Underpricing: The 1999–2000 Experience 431
Evidence on Underpricing 432
Why Does Underpricing Exist? 435
15.6 New Equity Sales and the Value
of the Firm 436
15.7 The Cost of Issuing Securities 437
IPOs in Practice: The Case of Athabasca
Oil Sands 439
15.8 Rights 439
The Mechanics of a Rights Offering 439
Number of Rights Needed to Purchase a Share 440
The Value of a Right 441
Theoretical Value of a Right 442
Ex Rights 443
Value of Rights after Ex-Rights Date 444
The Underwriting Arrangements 444
29. Effects on Shareholders 444
Cost of Rights Offerings 445
15.9 Dilution 446
Dilution of Proportionate Ownership 446
Dilution of Value: Book versus Market Values 446
15.10 Issuing Long-term Debt 448
15.11 Summary and Conclusions 449
C H A P T E R 1 6
FINANCIAL LEVERAGE AND CAPITAL
STRUCTURE POLICY 454
16.1 The Capital Structure Question 455
Firm Value and Stock Value: An Example 455
Capital Structure and the Cost of Capital 456
16.2 The Effect of Financial Leverage 456
The Basics of Financial Leverage 456
Corporate Borrowing and Homemade Leverage 460
16.3 Capital Structure and the Cost
of Equity Capital 462
M&M Proposition I: The Pie Model 462
The Cost of Equity and Financial Leverage:
M&M Proposition II 462
Business and Financial Risk 463
16.4 M&M Propositions I and II with
Corporate Taxes 466
The Interest Tax Shield 466
Taxes and M&M Proposition I 466
Taxes, the WACC, and Proposition II 468
30. 16.5 Bankruptcy Costs 470
Direct Bankruptcy Costs 470
Indirect Bankruptcy Costs 470
Agency Costs of Equity 471
16.6 Optimal Capital Structure 472
The Static Theory of Capital Structure 472
Optimal Capital Structure and the Cost
of Capital 473
Optimal Capital Structure: A Recap 473
Capital Structure: Some Managerial
Recommendations 475
16.7 The Pie Again 475
The Extended Pie Model 475
Marketed Claims versus Non-Marketed Claims 476
16.8 The Pecking-Order Theory 477
Internal Financing and the Pecking Order 477
Implications of the Pecking Order 477
16.9 Observed Capital Structures 478
Contents xi
00Ross_FrontMatter_FIN.indd
xi00Ross_FrontMatter_FIN.indd xi 12-12-20 13:0012-12-20
13:00
16.10 Long-Term Financing Under Financial
Distress and Bankruptcy 479
Liquidation and Reorganization 480
Agreements to Avoid Bankruptcy 481
31. 16.11 Summary and Conclusions 482
Appendix 16A: Capital Structure and
Personal Taxes 487
Appendix 16B: Derivation of Proposition II
(Equation 16.4) 489
C H A P T E R 1 7
DIVIDENDS AND DIVIDEND POLICY 490
17.1 Cash Dividends and Dividend
Payment 491
Cash Dividends 491
Standard Method of Cash Dividend Payment 492
Dividend Payment: A Chronology 492
More on the Ex-Dividend Date 492
17.2 Does Dividend Policy Matter? 494
An Illustration of the Irrelevance of
Dividend Policy 494
17.3 Real-World Factors Favouring
a Low Payout 496
Taxes 496
Some Evidence on Dividends and Taxes
in Canada 497
Flotation Costs 498
Dividend Restrictions 498
17.4 Real-World Factors Favouring a High
Payout 499
Desire for Current Income 499
Uncertainty Resolution 499
32. Tax and Legal Benefits from High Dividends 500
Conclusion 500
17.5 A Resolution of Real-World Factors? 500
Information Content of Dividends 501
Dividend Signalling in Practice 501
The Clientele Effect 502
17.6 Establishing a Dividend Policy 503
Residual Dividend Approach 503
Dividend Stability 505
A Compromise Dividend Policy 507
Some Survey Evidence on Dividends 507
17.7 Stock Repurchase: An Alternative
to Cash Dividends 508
Cash Dividends versus Repurchase 508
Real-World Considerations in a Repurchase 510
Share Repurchase and EPS 510
17.8 Stock Dividends and Stock Splits 510
Some Details on Stock Splits and Stock Dividends 511
Value of Stock Splits and Stock Dividends 512
Reverse Splits 512
17.9 Summary and Conclusions 513
P A R T 7
SHORT-TERM FINANCIAL PLANNING
AND MANAGEMENT 519
C H A P T E R 1 8
SHORT-TERM FINANCE AND PLANNING 519
33. 18.1 Tracing Cash and Net Working Capital 520
18.2 The Operating Cycle and the
Cash Cycle 521
Defining the Operating and Cash Cycles 522
Calculating the Operating and Cash Cycles 524
Interpreting the Cash Cycle 525
18.3 Some Aspects of Short-Term
Financial Policy 526
The Size of the Firm’s Investment in
Current Assets 526
Alternative Financing Policies for Current Assets 528
Which Financing Policy is Best? 531
Current Assets and Liabilities in Practice 531
18.4 The Cash Budget 533
Sales and Cash Collections 533
Cash Outflows 534
The Cash Balance 534
18.5 A Short-Term Financial Plan 536
Short-Term Planning and Risk 537
xii Contents
00Ross_FrontMatter_FIN.indd
xii00Ross_FrontMatter_FIN.indd xii 12-12-20 13:0012-12-20
13:00
18.6 Short-Term Borrowing 537
Operating Loans 537
Letters of Credit 539
34. Secured Loans 539
Factoring 540
Securitized Receivables—A Financial Innovation 541
Inventory Loans 541
Trade Credit 542
Money Market Financing 543
18.7 Summary and Conclusions 545
C H A P T E R 1 9
CASH AND LIQUIDITY MANAGEMENT 552
19.1 Reasons for Holding Cash 552
Speculative and Precautionary Motives 553
The Transaction Motive 553
Costs of Holding Cash 553
Cash Management versus Liquidity Management 553
19.2 Determining the Target Cash Balance 554
The Basic Idea 554
Other Factors Influencing the Target
Cash Balance 555
19.3 Understanding Float 556
Disbursement Float 556
Collection Float and Net Float 557
Float Management 557
Accelerating Collections 560
Over-the-Counter Collections 561
Controlling Disbursements 563
19.4 Investing Idle Cash 564
Temporary Cash Surpluses 564
Characteristics of Short-Term Securities 565
Some Different Types of Money
35. Market Securities 567
19.5 Summary and Conclusions 568
Appendix 19A (available on Connect)
C H A P T E R 2 0
CREDIT AND INVENTORY MANAGEMENT 572
20.1 Credit and Receivables 572
Components of Credit Policy 573
The Cash Flows from Granting Credit 573
The Investment in Receivables 573
20.2 Terms of the Sale 574
Why Trade Credit Exists 574
The Basic Form 575
The Credit Period 575
Cash Discounts 576
Credit Instruments 578
20.3 Analyzing Credit Policy 578
Credit Policy Effects 578
Evaluating a Proposed Credit Policy 579
20.4 Optimal Credit Policy 581
The Total Credit Cost Curve 581
Organizing the Credit Function 581
20.5 Credit Analysis 583
When Should Credit Be Granted? 583
Credit Information 584
Credit Evaluation and Scoring 585
20.6 Collection Policy 588
36. Monitoring Receivables 588
Collection Effort 589
Credit Management in Practice 589
20.7 Inventory Management 590
The Financial Manager and Inventory Policy 590
Inventory Types 590
Inventory Costs 591
20.8 Inventory Management Techniques 591
The ABC Approach 592
The Economic Order Quantity (EOQ) Model 592
Extensions to the EOQ Model 595
Managing Derived-Demand Inventories 596
Materials Requirements Planning (MRP) 597
Just-In-Time Inventory 598
20.9 Summary and Conclusions 600
Appendix 20A (available on Connect)
Contents xiii
00Ross_FrontMatter_FIN.indd
xiii00Ross_FrontMatter_FIN.indd xiii 12-12-20 13:0012-12-
20 13:00
P A R T 8
TOPICS IN CORPORATE FINANCE 606
C H A P T E R 2 1
INTERNATIONAL CORPORATE FINANCE 606
37. 21.1 Terminology 607
21.2 Foreign Exchange Markets and
Exchange Rates 608
Exchange Rates 609
Types of Transactions 611
21.3 Purchasing Power Parity 613
Absolute Purchasing Power Parity 613
Relative Purchasing Power Parity 614
Currency Appreciation and Depreciation 615
21.4 Interest Rate Parity, Unbiased
Forward Rates, and the Generalized
Fisher Effect 616
Covered Interest Arbitrage 616
Interest Rate Parity (IRP) 617
Forward Rates and Future Spot Rates 617
Putting It All Together 618
21.5 International Capital Budgeting 620
Method 1: The Home Currency Approach 620
Method 2: The Foreign Currency Approach 621
Unremitted Cash Flows 621
21.6 Financing International Projects 622
The Cost of Capital for International Firms 622
International Diversification and Investors 622
Sources of Short- and Intermediate-Term
Financing 623
21.7 Exchange Rate Risk 624
Transaction Exposure 624
Economic Exposure 625
Translation Exposure 626
38. Managing Exchange Rate Risk 627
21.8 Political and Governance Risks 627
Corporate Governance Risk 628
21.9 Summary and Conclusions 629
C H A P T E R 2 2
LEASING 634
22.1 Leases and Lease Types 634
Leasing versus Buying 635
Operating Leases 635
Financial Leases 636
22.2 Accounting and Leasing 637
22.3 Taxes, Canada Revenue Agency (CRA),
and Leases 639
22.4 The Cash Flows from Leasing 639
The Incremental Cash Flows 640
22.5 Lease or Buy? 641
A Preliminary Analysis 641
NPV Analysis 642
A Misconception 643
Asset Pool and Salvage Value 643
22.6 A Leasing Paradox 644
Resolving the Paradox 645
Leasing and Capital Budgeting 647
22.7 Reasons for Leasing 649
Good Reasons for Leasing 649
39. Bad Reasons for Leasing 649
Other Reasons for Leasing 650
Leasing Decisions in Practice 650
22.8 Summary and Conclusions 651
C H A P T E R 2 3
MERGERS AND ACQUISITIONS 655
23.1 The Legal Forms of Acquisitions 656
Merger or Consolidation 656
Acquisition of Stock 657
Acquisition of Assets 657
Acquisition Classifications 657
A Note on Takeovers 658
Alternatives to Merger 659
23.2 Taxes and Acquisitions 659
Determinants of Tax Status 659
Taxable versus Tax-Free Acquisitions 660
xiv Contents
00Ross_FrontMatter_FIN.indd
xiv00Ross_FrontMatter_FIN.indd xiv 12-12-20 13:0012-12-
20 13:00
23.3 Accounting for Acquisitions 660
23.4 Gains from Acquisition 661
Synergy 661
Revenue Enhancement 662
Cost Reductions 663
40. Tax Gains 664
Changing Capital Requirements 665
Avoiding Mistakes 665
A Note on Inefficient Management and
Opportunistic Takeover Offers 666
The Negative Side of Takeovers 666
23.5 Some Financial Side Effects of
Acquisitions 667
EPS Growth 667
Diversification 668
23.6 The Cost of an Acquisition 668
Case I: Cash Acquisition 669
Case II: Stock Acquisition 669
Cash versus Common Stock 670
23.7 Defensive Tactics 670
The Control Block and the Corporate Charter 671
Repurchase ∕ Standstill Agreements 671
Exclusionary Offers and Dual Class Stock 672
Share Rights Plans 672
Going Private and Leveraged Buyouts 673
LBOs to Date: The Record 674
Other Defensive Devices 674
23.8 Some Evidence on Acquisitions 676
23.9 Divestitures and Restructurings 678
23.10 Summary and Conclusions 679
P A R T 9
DERIVATIVE SECURITIES AND
CORPORATE FINANCE 685
41. C H A P T E R 2 4
ENTERPRISE RISK MANAGEMENT 685
24.1 Insurance 686
24.2 Managing Financial Risk 687
The Impact of Financial Risk: The Credit
Crisis of 2007–2009 687
The Risk Profile 688
Reducing Risk Exposure 688
Hedging Short-Run Exposure 689
Cash Flow Hedging: A Cautionary Note 690
Hedging Long-Term Exposure 690
Conclusion 690
24.3 Hedging with Forward Contracts 691
Forward Contracts: The Basics 691
The Payoff Profile 691
Hedging with Forwards 692
24.4 Hedging with Futures Contracts 694
Trading in Futures 694
Futures Exchanges 694
Hedging with Futures 698
24.5 Hedging with Swap Contracts 698
Currency Swaps 699
Interest Rate Swaps 699
Commodity Swaps 699
The Swap Dealer 699
Interest Rate Swaps: An Example 700
Credit Default Swaps (CDS) 701
42. 24.6 Hedging with Option Contracts 701
Option Terminology 701
Options versus Forwards 702
Option Payoff Profiles 702
Option Hedging 703
Hedging Commodity Price Risk with Options 703
Hedging Exchange Rate Risk with Options 704
Hedging Interest Rate Risk with Options 704
Actual Use of Derivatives 706
24.7 Summary and Conclusions 707
C H A P T E R 2 5
OPTIONS AND CORPORATE SECURITIES 711
25.1 Options: The Basics 711
Puts and Calls 712
Stock Option Quotations 712
Option Payoffs 713
Put Payoffs 716
Long-Term Options 716
Contents xv
00Ross_FrontMatter_FIN.indd
xv00Ross_FrontMatter_FIN.indd xv 12-12-20 13:0012-12-20
13:00
25.2 Fundamentals of Option Valuation 716
Value of a Call Option at Expiration 717
The Upper and Lower Bounds on a Call
Option’s Value 718
A Simple Model: Part I 719
43. Four Factors Determining Option Values 720
25.3 Valuing a Call Option 721
A Simple Model: Part II 721
The Fifth Factor 722
A Closer Look 723
25.4 Employee Stock Options 724
ESO Features 725
ESO Repricing 725
25.5 Equity as a Call Option on the
Firm’s Assets 726
Case I: The Debt Is Risk-Free 726
Case II: The Debt Is Risky 727
25.6 Warrants 729
The Difference between Warrants and
Call Options 729
Warrants and the Value of the Firm 730
25.7 Convertible Bonds 732
Features of a Convertible Bond 732
Value of a Convertible Bond 732
25.8 Reasons for Issuing Warrants and
Convertibles 734
The Free Lunch Story 735
The Expensive Lunch Story 735
A Reconciliation 735
25.9 Other Options 736
The Call Provision on a Bond 736
Put Bonds 736
The Overallotment Option 736
Insurance and Loan Guarantees 737
44. Managerial Options 737
25.10 Summary and Conclusions 740
Appendix 25A: The Black–Scholes Option
Pricing Model 745
C H A P T E R 2 6
BEHAVIOURAL FINANCE: IMPLICATIONS
FOR FINANCIAL MANAGEMENT 750
26.1 Introduction to Behavioural Finance 751
26.2 Biases 751
Overconfidence 751
Overoptimism 751
Confirmation Bias 752
26.3 Framing Effects 752
Loss Aversion 753
House Money 754
26.4 Heuristics 755
The Affect Heuristic 755
The Representativeness Heuristic 756
Representativeness and Randomness 756
The Gambler’s Fallacy 757
26.5 Behavioural Finance and Market
Efficiency 758
Limits to Arbitrage 758
Bubbles and Crashes 761
26.6 Market Efficiency and the Performance of
Professional Money Managers 766
45. 26.7 Summary and Conclusions 770
Glossary 773
Appendix A: Mathematical Tables (available on Connect)
Appendix B: Answers to Selected End-of-Chapter
Problems (available on Connect)
Subject Index 781
Name Index 800
Equation Index 802
xvi Contents
00Ross_FrontMatter_FIN.indd
xvi00Ross_FrontMatter_FIN.indd xvi 12-12-20 13:0012-12-
20 13:00
PREFACE
Fundamentals of Corporate Finance continues on its tradition of
excellence that has earned it its
status as market leader. The rapid and extensive changes in
financial markets and instruments has
placed new burdens on the teaching of Corporate Finance in
Canada. As a result, every chapter
has been updated to provide the most current examples that
reflect Corporate Finance in today’s
world. This best-selling text is written with one strongly held
principle—that Corporate Finance
should be developed and taught in terms of a few integrated
powerful ideas: Emphasis on
Intuition, Unified Valuation Approach, and Managerial Focus.
An Emphasis on Intuition We are always careful to separate and
46. explain the principles at
work on an intuitive level before launching into any specifics.
The underlying ideas are discussed
first in very general terms and then by way of examples that
illustrate in more concrete terms how
a financial manager might proceed in a given situation.
A Unified Valuation Approach We treat net present value (NPV)
as the basic concept un-
derlying corporate finance. Many texts stop well short of
consistently integrating this important
principle. The most basic notion—that NPV represents the
excess of market value over cost—
tends to get lost in an overly mechanical approach to NPV that
emphasizes computation at the
expense of understanding. Every subject covered in
Fundamentals of Corporate Finance is firmly
rooted in valuation, and care is taken throughout the text to
explain how particular decisions
have valuation effects.
A Managerial Focus Students will not lose sight of the fact that
financial management con-
cerns management. Throughout the text, the role of the financial
manager as decision maker is
emphasized, and the need for managerial input and judgement is
stressed. “Black box” approaches
to finance are consciously avoided.
These three themes work together to provide a sound
foundation, and a practical and work-
able understanding of how to evaluate and make financial
decisions.
New to This Edition In addition to retaining the coverage that
has characterized Fundamen-
47. tals of Corporate Finance from the beginning, the Eighth
Canadian Edition features enhanced
Canadian content on current issues such as:
• Perspective on the financial crisis of 2007–2009 and its
aftermath, in particular, the Euro-
pean government debt credit crisis (Chapters 1, 12, and 24,
among others).
• Updated and expanded coverage of corporate governance,
social responsibility, ethical in-
vesting, and shareholder activism (Chapters 1, 8, and 23).
• Addition of a new chapter on Behavioural Finance (Chapter
26).
• Refocusing of the derivatives coverage on Enterprise Risk
Management (Chapter 24).
00Ross_FrontMatter_FIN.indd
xvii00Ross_FrontMatter_FIN.indd xvii 12-12-20 13:0012-12-
20 13:00
COVERAGE
This book was designed and developed explicitly for a first
course in business or corporate
finance, for both finance majors and non-majors alike. In terms
of background or prerequisites,
the book is nearly self-contained, assuming some familiarity
with basic algebra and accounting
concepts, while still reviewing important accounting principles
very early on. The organization of
this text has been developed to give instructors the flexibility
they need.
48. Just to give an idea of the breadth of coverage in the Eighth
Canadian Edition, the following
grid presents, for each chapter, some of the most significant
features, as well as a few selected
chapter highlights. Of course, in every chapter, opening
vignettes, boxed features, in-chapter
illustrated examples using real companies, and end-of-chapter
materials have been thoroughly
updated as well.
Chapters Selected Topics of Interest Benefits to You
PART ONE OVERVIEW OF CORPORATE FINANCE
Chapter 1
Introduction to
Corporate Finance
• New material: Perspective on the financial crisis of
2007–2009 and its aftermath, in particular, the
European government debt credit crisis
• Links to headlines on financial crisis.
• Goal of the firm and agency problems • Stresses value creation
as the most fundamental aspect of
management and describes agency issues that can arise.
• Ethics, financial management, and executive
compensation
• Brings in real-world issues concerning conflicts of interest
and current controversies surrounding ethical conduct and
management pay.
Chapter 2
49. Financial Statements, Cash
Flow, and Taxes
• New material: Financial statements conforming to IFRS •
Links to current practice.
• Cash flow vs. earnings • Defines cash flow and the differences
between cash flow and
earnings.
• Market values vs. book values • Emphasizes the relevance of
market values over book values.
PART TWO FINANCIAL STATEMENTS AND LONG-TERM
FINANCIAL PLANNING
Chapter 3
Working with Financial
Statements
• Using financial statement information • Discusses the
advantages and disadvantages of using
financial statements.
Chapter 4
Long-Term Financial
Planning and Corporate
Growth
• Explanation of alternative formulas for sustainable
and internal growth rates
• Explanation of growth rate formulas clears up a common
misunderstanding about these formulas and the circumstances
under which alternative formulas are correct.
• Thorough coverage of sustainable growth as a
50. planning tool
• Provides a vehicle for examining the interrelationships
among operations, financing, and growth.
PART THREE VALUATION OF FUTURE CASH FLOWS
Chapter 5
Introduction to Valuation:
The Time Value of Money
• First of two chapters on time value of money • Relatively
short chapter introduces the basic ideas on time
value of money to get students started on this traditionally
difficult topic.
Chapter 6
Discounted Cash Flow
Valuation
• Second of two chapters on time value of money • Covers more
advanced time value topics with numerous
examples, calculator tips, and Excel spreadsheet exhibits.
Contains many real-world examples.
Chapter 7
Interest Rates and Bond
Valuation
• New material: Discussion of bond fund strategies at
time of European government debt crisis
• Links chapter material to current events.
• “Clean” vs. “dirty” bond prices and accrued
interest
51. • Clears up the pricing of bonds between coupon payment
dates and also bond market quoting conventions.
• Bond ratings • Up-to-date discussion of bond rating agencies
and ratings
given to debt. Includes the latest descriptions of ratings used
by DBRS.
Chapter 8
Stock Valuation
• New material: Stock valuation using multiples • Broadens
coverage of valuation techniques.
• New material: Examples of shareholder activism at
Canadian Pacific and Magna International
• Expands governance coverage and links chapter material to
current events.
00Ross_FrontMatter_FIN.indd
xviii00Ross_FrontMatter_FIN.indd xviii 12-12-20 13:0012-
12-20 13:00
Chapters Selected Topics of Interest Benefits to You
PART FOUR CAPITAL BUDGETING
Chapter 9
Net Present Value and
Other Investment Criteria
• New material: Enhanced discussion of multiple IRRs
and modified IRR
52. • Clarifies properties of IRR.
• New material: Practice of capital budgeting in Canada •
Current Canadian material demonstrates relevance of
techniques presented.
• First of three chapters on capital budgeting • Relatively short
chapter introduces key ideas on an intuitive
level to help students with this traditionally difficult topic.
• NPV, IRR, payback, discounted payback, and
accounting rate of return
• Consistent, balanced examination of advantages and
disadvantages of various criteria.
Chapter 10
Making Capital Investment
Decisions
• Project cash flow • Thorough coverage of project cash flows
and the relevant
numbers for a project analysis.
• Alternative cash flow definitions • Emphasizes the
equivalence of various formulas, thereby
removing common misunderstandings.
• Special cases of DCF analysis • Considers important
applications of chapter tools.
Chapter 11
Project Analysis and
Evaluation
• New material: Detailed examples added of scenario
53. analysis in gold mining and managerial options in
zoo management
• Brings technique to life in real-world example.
• Sources of value • Stresses the need to understand the
economic basis for
value creation in a project.
• Scenario and sensitivity “what-if” analyses • Illustrates how to
apply and interpret these tools in a
project analysis.
• Break-even analysis • Covers cash, accounting, and financial
break-even levels.
PART FIVE RISK AND RETURN
Chapter 12
Lessons from Capital
Market History
• New material: Capital market history updated
through 2011, new section on market volatility in
2008, In Their Own Words box on the crash of
2008 and the efficient markets hypothesis
• Extensively covers historical returns, volatilities, and risk
premiums.
• Geometric vs. arithmetic returns • Discusses calculation and
interpretation of geometric returns.
Clarifies common misconceptions regarding appropriate use of
arithmetic vs. geometric average returns.
• Market efficiency • Discusses efficient markets hypothesis
along with common
54. misconceptions.
Chapter 13
Return, Risk, and the
Security
Market Line
• New material: Correlations in the financial crisis • Explains
instability in correlations with a current example.
• Diversification, systematic and unsystematic risk • Illustrates
basics of risk and return in straightforward fashion.
• Beta and the security market line • Develops the security
market line with an intuitive approach
that bypasses much of the usual portfolio theory and statistics.
PART SIX COST OF CAPITAL AND LONG-TERM
FINANCIAL POLICY
Chapter 14
Cost of Capital
• Cost of capital estimation • Contains a complete step-by-step
illustration of cost of
capital for publicly traded Loblaw Companies.
Chapter 15
Raising Capital
• Dutch auction IPOs • Explains uniform price auctions using
Google IPO as
an example.
• IPO “quiet periods” • Explains the OSC’s and SEC’s quiet
period rules.
55. • Lockup agreements • Briefly discusses the importance of
lockup agreements.
• IPOs in practice • Takes in-depth look at IPOs of Facebook
and Athabasca
Oil Sands.
Chapter 16
Financial Leverage and
Capital Structure Policy
• New material: Pecking order theory • Expands coverage of
capital structure.
• Basics of financial leverage • Illustrates the effect of leverage
on risk and return.
• Optimal capital structure • Describes the basic trade-offs
leading to an optimal capital
structure.
• Financial distress and bankruptcy • Briefly surveys the
bankruptcy process.
Chapter 17
Dividends and Dividend
Policy
• New material: Recent Canadian survey evidence on
dividend policy
• Survey results show the most important (and least
important) factors that financial managers consider when
setting dividend policy.
• Dividends and dividend policy • Describes dividend payments
56. and the factors favouring
higher and lower payout policies.
Coverage xix
00Ross_FrontMatter_FIN.indd
xix00Ross_FrontMatter_FIN.indd xix 12-12-20 13:0012-12-
20 13:00
Chapters Selected Topics of Interest Benefits to You
PART SEVEN SHORT-TERM FINANCIAL PLANNING AND
MANAGEMENT
Chapter 18
Short-Term Finance and
Planning
• Operating and cash cycles • Stresses the importance of cash
flow timing.
• Short-term financial planning • Illustrates creation of cash
budgets and potential need
for financing.
Chapter 19
Cash and Liquidity
Management
• Float management • Covers float management thoroughly.
• Cash collection and disbursement • Examines systems that
firms use to handle cash inflows
and outflows.
57. Chapter 20
Credit and Inventory
Management
• Credit management • Analysis of credit policy and
implementation.
• Inventory management • Briefly surveys important inventory
concepts.
PART EIGHT TOPICS IN CORPORATE FINANCE
Chapter 21
International Corporate
Finance
• Exchange rate, political, and governance risks • Discusses
hedging and issues surrounding sovereign and
governance risks.
• Foreign exchange • Covers essentials of exchange rates and
their determination.
• International capital budgeting • Shows how to adapt basic
DCF approach to handle
exchange rates.
Chapter 22
Leasing
• Synthetic leases • Discusses controversial practice of
financing off the
statement of financial position (also referred to as off-balance
sheet financing).
• Leases and lease valuation • Discusses essentials of leasing.
58. Chapter 23
Mergers and Acquisitions
• New material: Expanded discussion of dual class stock,
investor activism, and ownership and control
• Presents topical issues with Canadian examples.
• Alternatives to mergers and acquisitions • Covers strategic
alliances and joint ventures and explains
why they are important alternatives.
• Divestitures and restructurings • Examines important actions
such as equity carve-outs,
spins-offs, and split-ups.
• Mergers and acquisitions • Develops essentials of M&A
analysis, including financial,
tax, and accounting issues.
PART NINE DERIVATIVE SECURITIES AND CORPORATE
FINANCE
Chapter 24
Enterprise Risk
Management
• New material: Enterprise risk management framework
and insurance
• Illustrates need to manage risk and some of the most
important types of risk.
• New material: Recent survey results on derivatives use •
Relates material to practice by financial executives.
• Hedging with forwards, futures, swaps, and options • Shows
59. how many risks can be managed with financial
derivatives.
Chapter 25
Options and Corporate
Securities
• Put-call parity and Black–Scholes • Develops modern option
valuation and factors influencing
option values.
• Options and corporate finance • Applies option valuation to a
variety of corporate issues,
including mergers and capital budgeting.
Chapter 26 (New
Chapter)
Behavioural Finance:
Implications for Financial
Management
• Introduction to Behavioural Finance • Introduces biases,
framing effects, and heuristics.
• Behavioural Finance and market efficiency • Explains limits to
arbitrage and discusses bubbles and
crashes, including the Crash of 2008.
• Market efficiency and the performance of professional
money managers
• Expands on efficient markets discussion in Chapter 12 and
relates it to Behavioural Finance.
xx Coverage
60. 00Ross_FrontMatter_FIN.indd
xx00Ross_FrontMatter_FIN.indd xx 12-12-20 13:0012-12-20
13:00
LEARNING SOLUTIONS
In addition to illustrating pertinent concepts and presenting up-
to-date coverage, the authors
strive to present the material in a way that makes it logical and
easy to understand. To meet the
varied needs of the intended audience, our text is rich in
valuable learning tools and support.
Each feature can be categorized by the benefit to the student:
• Real Financial Decisions
• Application Tools
• Study Aids
Real F inancial Decis ions
We have included key features that help students connect
chapter concepts to how decision
makers use this material in the real world.
In Their Own Words Boxes A unique series of brief essays are
written by distinguished
scholars and by Canadian practitioners on key topics in the text.
To name just a few, these include
essays by Jeremy Siegel on efficient market theory and the
financial crisis, Eric Lie on option
backdating, and Heather Pelant on investment risk.
Jeremy Siegel on Efficient Market Theory and the Crisis
Financial journalist and best-selling author Roger Lowenstein
61. didn’t mince words in a piece for the Washington WW Post this
summer: “The upside of the current Great Recession is that it
could drive a stake through the heart of the academic nostrum
known as the efficient-market hypothesis.” In a similar vein,
thethethe highighiggghlyhlyhlyyy resresrespecpecpecpp
tedtedted monmonmonmoneyeyey ey y
manmanmanmanageageageageg rrr r andandand
fifififinannannanciaciacialll l anaanaanalyslyslysyy ttt
JJerJerJerJ emyemyemyy GGraGraGra thnthnthnthamamam
wrowrowrottetete iininin hihishishis quaquaquaq trterterte
lrlyrlyrlyy l tletletlettterterter llaslaslastttt JJanJanJanJ
uaruaruary:y:y:yrrr
“Th“ThThTheee iincincinc dredredredibliblibliblyyy y
iinainainaccuccuccu tratratrateee ffieffieffieffi icieciecie tntntnt
marmarmark tketketket ththethetheorororyyy yrrrr [[ca[ca[ca[
useuseused]d]d]d] ] aaa
letletletlethalhalhalhallylylyly dandandandangergergergero
sousousous comcomcomcombinbinbinbinatiatiatiationononon
ofofofof assassassassetetetet b bbubbubbubbleblebleblesss,s,
laxlaxlaxlax conconconcontrotrotrotrolslsls,ls,
thought that underlying collateral—the home—could always
cover the principal in the event the homeowner defaulted. These
models led credit agencies to rate these subprime mortgages as
“investment grade.”
But this assessment was faulty. From 2000 through 2006,
national home prices rose by 88.7%, far more than the 17.5%
gaig n in the consumer prip ce index or the palp try yr 1% rise
in median
hhouhouhou hsehsehseh ldoldoldold iincincincomeomeome..
NNevNevNevererer b fbefbefbeforeoreore hhavhavhaveee
hhomhomhomeee ipripriprip cescesces jjumjumjumj
dpedpedpedp ththathathatttt
ffarfarfar hahahah deadeadead fofofof prprprprp iiceiceices as
as as a dndndnd iincincincomeomeomeomesss.s.
62. ThiThiThiThisss s shoshoshoshoulduldulduld
havhavhavhaveeee sensensensenttt t upupupupp redredredred
flflflflagsagsagsagsg andandandand cascascascasttt t
doudoudoudoubtsbtsbtsbts onononon usiusiusiusingngngngg
d l h l k d l hi i l d li j d f
IN THEIR OWN WORDSIN THEIR OWN WORDS…
Enhanced Real-World Examples There are many current
examples integrated throughout
the text, tying chapter concepts to real life through illustration
and reinforcing the relevance of
the material. For added reinforcement, some examples tie into
the chapter-opening vignettes.
Web Links We have added and updated website references, a
key research tool directing stu-
dents to websites that tie into the chapter material.
Integrative Mini Cases These longer problems seek to integrate
a number of topics from
within the chapter. The Mini Cases allow students to test and
challenge their abilities to solve
real-life situations for each of the key sections of the text
material.
Internet Application Questions Questions relevant to the topic
discussed in each chapter,
are presented for the students to explore using the Internet.
Students will find direct links to the
websites included in these questions on the Ross Connect site
and linked out directly from
the eBook.
Appl icat ion Tools
63. Realizing that there is more than one way to solve problems in
Corporate Finance, we include
sections that will not only encourage students to learn different
problem-solving methods, but
will also help them learn or brush up on their financial
calculator and Excel® spreadsheet skills.
00Ross_FrontMatter_FIN.indd
xxi00Ross_FrontMatter_FIN.indd xxi 12-12-20 13:0012-12-
20 13:00
Calculator Hints This feature introduces students to problem
solving with the assistance of a
financial calculator. Sample keystrokes are provided for
illustrative purposes, although individual
calculators will vary.
Annuity Payments
Finding annuity payments is easy with a financial calculator. In
our example just above, the
PV is $100,000, the interest rate is 18 percent, and there are
five years. We find the pay-
ment as follows:
Enter 5 18 100,000
S lSolSolSolSolveveveve fforforforfor -
3131313131,,978978978978978
HHerHerHerHere we we we we ge ge ge gggetetetet a na na na
negaegaegaegagg itivtivtivtive se se se siignignignigngg
onononon hththththe pe pe pe pppaymaymaymaymyy
entententent bbebebebecaucaucaucausesesese hthethethethe
64. papapapapp ymeymeymeymeyy ntntntnt iisisisis anananan
outoutoutoutflfloflofloflo fw fw fw fw forororor usususus.
CALCULATOR
HINTS
Spreadsheet Strategies This feature either introduces students to
Excel® or helps them
brush up on their Excel® spreadsheet skills, particularly as they
relate to Corporate Finance. This
feature appears in self-contained sections and shows students
how to set up spreadsheets to ana-
lyze common financial problems—a vital part of every business
student’s education.
How to Calculate Bond Prices and Yields Using a Spreadsheet
Most spreadsheets have fairly elaborate routines available for
calculating bond values and
yields; many of these routines involve details that we have not
discussed. However, setting
up a simple spreadsheet to calculate prices or yields is
straightforward, as our next two
spreadsheets show:
1
2222
333333
44444
5
A B C D E F G H
65. SSuppoSuppoSuppopp se wese wese we hhavehavehave ba boa
boa bo d ind wind wind with 22th 22th 22th 22 yearyearyeary ts
tos tos to tmaturmaturmaturitityityityy a ca c, a c,
ouponouponouponp trateraterate f 8of 8of 8of 8 percpercpercp
tententent, , dand aand aand a i lyielyielyiely d td tod tod to
t it f 9 t If th b d k i l t h t i it i t d ?
U iUsingUsingUsingg a spa spa spp dreadsreadsreadsh
theetheetheet tto cato cato cal llculalculalculat bte bote bote bo
dnd vand vand valluelueluesss
SPREADSHEET
STRATEGIES
Excel® Spreadsheet Templates Selected questions within the
end-of-chapter material, identified
by the following icon: , can be solved using the Excel®
Spreadsheet Templates available on this text’s
Connect. These Excel® templates are a valuable extension of
the Spreadsheet Strategies feature.
Study Aids
We want students to get the most from this resource and their
course, and we realize that students
have different learning styles and study needs. We therefore
present a number of study features to
appeal to a wide range of students.
Chapter Learning Objectives This feature maps out the topics
and learning goals in each
chapter. Each end-of-chapter problem is linked to a learning
objective to help students organize
their study time appropriately.
66. DISCOUNTED CASH FLOW
VALUATIONAA
C H A P T E R 6
ith multimillion dollar contracts and
bonuses, the signing of big-name ath-
letes in the sports industry r is often accompanied by
great fanfare, but the numbers can often be mislead-
ing. For example, in September 2009, the Vancou-VV
ver Canucks extended its contract with goaltender
Roberto Luongo, offering him a twelve-year deal
through to 2021 valued at a total of US$64 million.
Considering the time value of money,yy how much is
Luongo really receiving? After reading this chapter, rr
you’ll see that although Luongo still received a sub-
stantial amount, it is less than the US$64 million dol-
lar figure that sent the sports media into a frenzy.
Learning
Object ives
After studying this chapter, you should understand:rr
69. Concept Building Chapter sections are intentionally kept short
to promote a step-by-step,
building block approach to learning. Each section is then
followed by a series of short concept
questions that highlight the key ideas just presented. Students
use these questions to make sure
they can identify and understand the most important concepts as
they read.
Numbered Examples Separate numbered and titled examples are
extensively integrated into
the chapters. These examples provide detailed applications and
illustrations of the text material in
a step-by-step format. Each example is completely self-
contained so students don’t have to search
for additional information. Based on our classroom testing,
these examples are among the most
useful learning aids because they provide both detail and
explanation.
Key Terms Within each chapter, key terms are highlighted in
boldface type the first time they
appear. Key terms are defined in the text, and also in a running
glossary in the margins of the text
for quick reminders. For reference, there is a list of key terms at
70. the end of each chapter and a full
glossary with page references for each term at the back of the
textbook.
Summary Tables These tables succinctly restate key principles,
results, and equations. They
appear whenever it is useful to emphasize and summarize a
group of related concepts.
Key Equations These are called out in the text and identified by
equation number. An Equa-
tion Index is available at the end of the book and a Formula
Sheet can be found on the text’s
Connect site.
Chapter Summary and Conclusion These paragraphs review the
chapter’s key points and
provide closure to the chapter.
Chapter Review Problems and Self-Test Appearing after the
Summary and Conclusions
and Key Terms, each chapter includes Chapter Review Problems
and a Self-Test section. These
questions and answers allow students to test their abilities in
solving key problems related to the
71. chapter content and provide instant reinforcement.
Concepts Review and Critical Thinking Questions This section
facilitates students’
knowledge of key principles, and their intuitive understanding
of chapter concepts. A number of
the questions relate to the chapter-opening vignette—
reinforcing students’ critical-thinking skills
and the learning of chapter material.
Concepts Review and Critical Thinking Questions
1. (LO3) What effect would the following actions have on a
firm’s current ratio? Assume that net working capital is
positive.
a. Inventory is purchased.
b. A supplier is paid.
c. A short-term bank loan is repaid.
d. A long-term debt is paid off early.
e. A customer pays off a credit account.
f. Inventory is sold at cost.
gg.g InveInventorntory isy isy solsold fod for ar a profprofp itit.
222.2. 2. ( O(LO3(LO3(LO3(LO3(LO3( ))))))) IInIn In
recerecerece tntntnt yearyearyeary ss, s, hCh
72. tChetChetChetiicamicamicampppp CCoCo. Co. hhhashashas
greagreagreag ltltlytlytly y iincrincrincreaseeaseeaseddddd
ititsitsits currcurrcurrententent tiratiratiratiooo. AAtAtAt
hthethethe samesamesame titimetimetime,, , hthethethe
iquicquicquicq kkkk tiratiratiratiooo hhashashas f
llfallfallfallenenen.
WWWhhathathat hhhhasasas hhapphapphapppp
denedenedened???? HasHasHas hthethethe lliquliquliquq
diditiditidityyy yy fofofof hthethethe
compcompcomppanananyyy yy
i d?
closely watched for semiconductor manufacturers. A ratio of
0.93 indicates that for every $100 worth of chips shipped over
some period, only $93 worth of new orders is received. In Feb-
ruary 2006, the semiconductor equipment industry’s book-to-
bill reached 1.01, compared to 0.98 during the month of
January 2006. The book-to-bill ratio reached a low of 0.78
during October 2006. The three-month average of worldwide
bookings in January 2006 was $1.30 billion, an increase of 6
percent over January 2005, while the three-month average of
billbillingsingsg inin FebrFebruaryuaryy 20062006 waswas $1
2$1.2$ 99 billbillionion,, aa 22 percpercp entent in-in-
creacreacreasese se fffromfromfrom bF
bFebrFebrFebruaryuaryuaryy 2005200520052005. . hWh
73. tWhatWhatWhat iisis is hthithisthisthis tiratiratiratioo o i
tinteinteinte d dd dndedndednded ttototo
measmeasmeas ?ure?ure?ure? WhWhyWhyWhyy ddododo
youyouyou y hithinthinthink ik itk itk it iisisis so cso cso
clloseloseloselly wly wly wy hatchatchatch d?ed?ed?ed?
9999.9. ((LO5(LO5(LO5(LO5(LO5( ))))))) SSo cSo-cSo-c
llalleallealledddd ““samsamsame ste-ste-storeoreore
lsalesalesale ”s”ss areareare aaa veryveryveryyy
impoimpoimpop rtanrtanrtanttt meamea-mea-
f i di C di Ti d Ti H
Questions and Problems We have found that many students
learn better when they have
plenty of opportunity to practise; therefore, we provide
extensive end-of-chapter questions and
problems. These are labelled by topic and separated into three
learning levels: Basic, Intermediate,
and Challenge. Throughout the text, we have worked to supply
interesting problems that illustrate
real-world applications of chapter material. Answers to selected
end-of-chapter material appear
in Appendix B (now available on Connect).
As described earlier in this Preface, students’ learning and
74. understanding of the chapter con-
tent is further supported by the following end-of-chapter
materials:
• Internet Application Questions
• Mini Cases
• Suggested Readings (now available on Connect)
Learning