Financial Management: Theory and PracticeContinuing the four goals from the first edition, i.e. helping students to make good financial decisions, providing a solid text for the introductory MBA course, motivating students by demonstrating finance is relevant and interesting, and presenting the material clearly, this Tenth Edition promises to be the best yet. Written by a highly-acclaimed, best selling, author team, this text remains the only MBA-level text to present a balance of financial theory and applications. |
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Page 79
... debt , which raises the expected rate of return to stockholders for two reasons : ( 1 ) Since interest is deductible , the use of debt lowers the tax bill and leaves more operating income available to its investors . ( 2 ) If the ...
... debt , which raises the expected rate of return to stockholders for two reasons : ( 1 ) Since interest is deductible , the use of debt lowers the tax bill and leaves more operating income available to its investors . ( 2 ) If the ...
Page 376
... DEBT , ka ( 1 − T ) - The first step in estimating the cost of debt is to determine the rate of return debthold- ers require , or ka . Although estimating ka is conceptually straightforward , some prob- lems arise in practice ...
... DEBT , ka ( 1 − T ) - The first step in estimating the cost of debt is to determine the rate of return debthold- ers require , or ka . Although estimating ka is conceptually straightforward , some prob- lems arise in practice ...
Page 579
... debt and equity . Raising capital as debt has several advantages . First , interest is tax deductible , which lowers the effective cost of debt . Second , debtholders are limited to a fixed return , so stockholders do not have to share ...
... debt and equity . Raising capital as debt has several advantages . First , interest is tax deductible , which lowers the effective cost of debt . Second , debtholders are limited to a fixed return , so stockholders do not have to share ...
Contents
CHAPTER | 1 |
AN OVERVIEW OF FINANCIAL MANAGEMENT | 3 |
CHAPTER | 17 |
Copyright | |
49 other sections not shown
Common terms and phrases
12 percent after-tax analysis annual annuity assume average balance sheet bank beta beta coefficient bonds capital budgeting capital gains capital structure CAPM Chapter common equity common stock company's corporate cost of capital cost of equity coupon decision depreciation discussed dividend policy dollar EBIT effect Equation estimate example expected rate expected return financial calculator Financial Management firm firm's fixed assets flotation costs forecast free cash flow funds future growth rate higher income increase inflation interest rates inventory investment investors issue lease leverage loan long-term market risk market value maturity MicroDrive MicroDrive's million NOPAT Note operating payments payout portfolio preferred stock present value problem profit rate of return ratio required rate retained earnings risk premium risk-free rate risky securities SELF-TEST QUESTIONS sell share shareholders short-term stock price stockholders tax rate WACC yield yield to maturity zero