PART 1 Introduction to Managerial Finance 1 1 The Role of Managerial Finance 2 2 The Financial Market Environment 17 PART 2 Financial Tools 27 3 Financial Statements and Ratio Analysis 28 4 Long- and Short-Term Financial Planning 54 5 Time Value of Money 76 PART 3 Valuation of Securities 115 6 Interest Rates and Bond Valuation 116 7 Stock Valuation 146 PART 4 Risk and the Required Rate of Return 162 8 Risk and Return 163 9 The Cost of Capital 198 PART 5 Long-Term Investment Decisions 220 10 Capital Budgeting Techniques 221 11 Capital Budgeting Cash Flows 250 12 Risk Refinements in Capital Budgeting 277 PART 6 Long-Term Financial Decisions 305 13 Leverage and Capital Structure 306 14 Payout Policy 325 PART 7 Short-Term Financial Decisions 341 15 Working Capital and Current Assets Management 342 16 Current Liabilities Management 356 PART 8 Special Topics in Managerial Finance 371 17 Hybrid and Derivative Securities 372 18 Mergers, LBOs, Divestitures, and Business Failure 390 19 International Managerial Finance 405