PART 2 Financial Tools 29 3 Financial Statements and Ratio Analysis 31 4 Long- and Short-Term Financial Planning 55 5 Time Value of Money 79 PART 3 Valuation of Securities 119 6 Interest Rates and Bond Valuation 121 7 Stock Valuation 149 PART 4 Risk and the Required Rate of Return 167 8 Risk and Return 169 9 The Cost of Capital 205 PART 5 Long-Term Investment Decisions 231 10 Capital Budgeting Techniques 233 11 Capital Budgeting Cash Flows 261 12 Risk Refinements in Capital Budgeting 293 PART 6 Long-Term Financial Decisions 327 13 Leverage and Capital Structure 329 14 Payout Policy 349 PART 7 Short-Term Financial Decisions 367 15 Working Capital and Current Assets Management 369 16 Current Liabilities Management 383 PART 8 Special Topics in Managerial Finance 399 17 Hybrid and Derivative Securities 401 18 Mergers, LBOs, Divestitures, and Business Failure 421 19 International Managerial Finance 437