Contents Chapter 1 The Role and Objective of Financial Management 1 Chapter 2 The Domestic and International Financial Marketplace 13 Appendix 2A Taxes 26 Chapter 3 Evaluation of Financial Performance 31 Chapter 4 Financial Planning and Forecasting 51 Chapter 5 The Time Value of Money 66 Appendix 5A pounding and Discounting 95 Chapter 6 Analysis of Risk and Return 99 Chapter 7 Fixed e Securities: Characteristics and Valuation 127 Chapter mon Stock: Characteristics, Valuation, and Issuance 153 Chapter 9 Capital Budgeting and Cash Flow Analysis 179 Chapter 10 Capital Budgeting: Decision Criteria and Real Option Considerations 202 Appendix 10A Mutually Exclusive Investments Having Unequal Lives 221 Chapter 11 Capital Budgeting and Risk 228 Chapter 12 The Cost of Capital 246 Chapter 13 Capital Structure Concepts 270 Chapter 14 Capital Structure Management in Practice 285 Chapter 15 Dividend Policy 306 Chapter 16 Working Capital Policy and Short-Term Financing 327 Chapter 17 The Management of Cash and Marketable Securities 344 Chapter 18 Management of Accounts Receivable and Inventories 360 Chapter 19 Lease and Intermediate-Term Financing 376 Chapter 20 Financing with Derivatives 388 Appendix 20B Bond Refunding Analysis 404 Chapter 21 Risk Management 408 Chapter 22 International Financial Management 415 Chapter 23 Corporate Restructuring 425 Chapter 1 1. The primary objective of the firm is: a. Shareholder wealth maximization b. Social responsibility c. Long run survival d. Profit maximization ANS: A OBJ: TYPE: Fact TOP: A Foundation Concept 2. The limitations of the profit maximization goal include: a. It lacks a time dimension (., it is static) b. It fails to consider risk c. The definition of profit is ambiguous d. All the above are limitations ANS: D OBJ: TYPE: Fact 3. The shareholder wealth maximization goal states that management should seek to maximize the _______ of the expected future returns to the owners of the f