ghiệm kiến thức Forex tại : https://tracnghiemfore INTERMEDIATE FINANCIAL MANAGEMENT 9E Eugene F. Brigham University of Florida Phillip R. Daves University of Tennessee Trắc nghiệm kiến thức Forex tại : https://tracnghiemforex.com/ Intermediate Financial Management, Ninth Edition Eugene F. Brigham and Phillip R.
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Thomson, the Star copyright hereon may be reproduced or logo, and South-Western are trademarks used in any form or by any means— For more information about our products, used herein under license. graphic, electronic, or mechanical, contact us at: including photocopying, recording, taping, Printed in the United States of America Web distribution or information storage Thomson Learning 1 2 3 4 5 09 08 07 06 and retrieval systems, or in any other Academic Resource Center manner—without the written permission 1-800-432-0563 Student Edition: of the publisher. ISBN 0-324-31987-8 (book) Thomson Higher Education ISBN 0-324-31986-X (package) For permission to use material from this 5191 Natorp Boulevard text or product, submit a request online at Instructor’s Edition: Mason, OH 45040 http://www.com ISBN 0-324-53718-2 (book) USA ISBN 0-324-40553-7 (package) Trắc nghiệm kiến thức Forex tại : https://tracnghiemforex.com/ preface M uch has happened in finance recently. Years ago, when the body of knowledge was smaller, the fundamental principles could be cov- ered in a one-term lecture course and then reinforced in a subse- quent case course.
This approach is no longer feasible. There is simply too much material to cover in one lecture course. As the body of knowledge expanded, we and other instructors experi- enced increasing difficulties. Eventually, we reached these conclusions: (1) The introductory course should be designed for all business students, not just for finance majors, and it should provide a broad overview of finance.
There- fore, a text designed for the first course should cover key concepts but avoid confusing students by going beyond basic principles. (2) Finance majors need a second course that provides not only greater depth on the core issues of valuation, capital budgeting, capital structure, cost of capital, and working capital management but also covers such special topics as mergers, multinational finance, leasing, risk management, and bankruptcy. (3) This second course should also utilize cases that show how finance theory is used in practice to help make better financial decisions. When we began teaching under the two-course structure, we tried two types of existing books, but neither worked well.
First, there were books that empha- sized theory, but they were unsatisfactory because students had difficulty seeing Be sure to visit the the usefulness of the theory and consequently were not motivated to learn it. Intermediate Financial Moreover, these books were of limited value in helping students deal with cases. Management Web site at Second, there were books designed primarily for the introductory MBA course http://now.com/ that contained the required material, but they also contained too much introduc- brigham for more informa- tory material. We eventually concluded that a new text was needed, one designed tion about this text.
specifically for the second financial management course, and that led to the cre- ation of Intermediate Financial Management, or IFM for short. THE NEXT LEVEL: INTERMEDIATE FINANCIAL MANAGEMENT In your introductory finance course you learned a number of terms and concepts. However, an intro course cannot make you “operational” in the sense of actually “doing” financial management. For one thing, introductory courses necessarily focus on individual chapters and even sections of chapters, and first-course exams generally consist of relatively simple problems plus short-answer questions.
As a result, it is hard to get a good sense of how the various parts of financial manage- ment interact with one another. Second, there is not enough time in the intro course to allow students to set up and work out realistic problems, nor is there time to delve into actual cases that illustrate how finance theory is applied in practice. Trắc nghiệm kiến thức Forex tại : https://tracnghiemforex.com/ Preface • iii Now it is time to move on. In Intermediate Financial Management, we first review materials that were covered in the introductory course, then take up new material.
The review is absolutely essential, because no one can remember every- thing that was covered in the first course, yet all of the introductory material is essential for a good understanding of the more advanced material. Accordingly, we revisit topics such as the net present value (NPV) and internal rate of return (IRR) methods, but now we delve into them more deeply, considering how to streamline and automate the calculations, how to obtain the necessary data, and how errors in the data might affect the outcome. We also relate the topics covered in different chapters to one another, showing, for example, how cost of capital, capital structure, dividend policy, and capital budgeting combine forces to affect the firm’s value. Also, because spreadsheets such as Excel, not financial calculators, are used for most real-world calculations, students need to be proficient with spreadsheets so that they will be more marketable after graduation.
Therefore, we explain how to do various types of financial analysis with Excel. Working with Excel actually has two important benefits: (1) A knowledge of Excel is important in the work- place and the job market, and (2) setting up spreadsheet models and analyzing the results also provide useful insights into the implications of financial decisions. CORPORATE VALUATION AS A UNIFYING THEME Management’s goal is to maximize firm value. Job candidates who understand the theoretical underpinning for value maximization and have the practical skills to analyze business decisions within this context make better, more valuable employ- ees.
Our goal is to provide you with both this theoretical underpinning and a practical skill-set. To this end we have developed several integrating features that will help you to keep the big picture of value-maximization in mind while you are honing your analytical skills. First, every chapter starts off with a series of inte- grating Beginning-of-Chapter Questions that will help you to place the material in the broader context of financial management. Second, each chapter has a valuation graphic and description that show exactly how the material relates to corporate valuation.
Third, each chapter has a Mini Case that provides a business context for the material. Fourth, each chapter has an Excel spreadsheet Tool Kit that steps through all of the calculations in the chapter. Fifth, each chapter has a spreadsheet Build-a-Model that steps you through constructing an Excel model to work prob- lems. We’ve designed these features and tools so that you’ll finish your course with the skills to analyze business decisions and the understanding of how these decisions impact corporate value.
BEGINNING-OF-CHAPTER QUESTIONS We start each chapter with several “Beginning-of-Chapter” (BOC) questions. You will be able to answer some of the questions before you even read the chapter, and you will be able to give better answers after you have read it. Other questions are harder, and you won’t feel truly comfortable answering them until after they have been discussed in class. We considered putting the questions at the ends of the chapters, but we concluded that they would best serve our purposes if placed at the beginning.
Here is a summary of our thinking as we wrote the questions: iv • Preface Trắc nghiệm kiến thức Forex tại : https://tracnghiemforex. The questions indicate to you the key issues covered in the chapter and the things you should know when you complete the chapter. Some of the questions were designed to help you remember terms and con- cepts that were covered in the introductory course. Others indicate where we will be going beyond the intro course.
You need to be able to relate different parts of financial management to one another, so some of the BOC questions were designed to get you to think about how the various chapters are related to one another. These questions tend to be harder, and they can be answered more completely after a class- room discussion. You also need to think about how financial concepts are applied in the real world, so some of the BOC questions focus on the application of theories to the decision process. Again, complete answers to these questions require a good bit of thought and discussion.
Some of the BOC questions are designed to help you see how Excel can be used to make better financial decisions. These questions have accompanying models that provide tutorials on Excel functions and commands. The com- pleted models are available on the ThomsonNOW Web site at http://now. Going through them will help you learn how to use Excel as well as give you valuable insights into the financial issues covered in the chapter.
We have also provided an “Excel Tool Locater,” which is an index of all of the Excel skills that the BOC models go over. This index is in the Excel file, Excel Locations. Because recruiters like students who are good with Excel, this will also help you as you look for a good job. It will also help you succeed once you are in the workplace.
We personally have used the BOC questions in several different ways: 1. In some classes we simply told students to use the BOC questions or not, as they wished. Some students did study them and retrieve the Excel models from the net, but many just ignored them. We have also assigned selected BOC questions and then used them, along with the related Excel models, as the basis for some of our lectures.
Most recently, we literally built our course around the BOC questions.1 Here we informed students on day one that we would start each class by calling on them randomly and grading them on their answers.2 We also informed them that our exams would be taken verbatim from the BOC questions. They com- plained a bit about the quizzes, but the students’ course evaluations stated that the quizzes should be continued because without them they would have come to class less well prepared and hence would have learned much less than they did. The best way to prepare for the course as we taught it was by first reading the questions, then reading the chapter, and then writing out notes outlining answers to the questions in preparation for the oral quiz. We expected stu- dents to give complete answers to “easy” questions, but we gave them good grades if they could say enough about the harder questions to demonstrate that they had thought about how to answer them.
We would then discuss the 1Actually, we broke our course into two segments, one where we covered selected text chapters and another where we covered cases that were related to and illustrated the text chapters. For the case portion of the course, students made presentations and discussed the cases. All of the cases required them to use Excel. 2Most of our students were graduating seniors who were interviewing for jobs.
We excused them from class (and the quizzes) if they informed us by e-mail before class that they were interviewing. Trắc nghiệm kiến thức Forex tại : https://tracnghiemforex.com/ Preface • v harder questions in lieu of a straight lecture, going into the related Excel mod- els both to explain Excel features and to provide insights into different issues.