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 73
... Industry average = 4.2 times . MicroDrive has a lower current ratio than the average for its industry . Is this good or bad ? Sometimes the answer depends on who is asking the question . For example , suppose a supplier is trying to ...
... Industry average = 4.2 times . MicroDrive has a lower current ratio than the average for its industry . Is this good or bad ? Sometimes the answer depends on who is asking the question . For example , suppose a supplier is trying to ...
Page 74
... industry , this is a red flag , and analysts should be concerned about why the variance occurs . For example , suppose a low current ratio could be traced to low inventories . Is this a competitive advantage resulting from the firm's ...
... industry , this is a red flag , and analysts should be concerned about why the variance occurs . For example , suppose a low current ratio could be traced to low inventories . Is this a competitive advantage resulting from the firm's ...
Page 83
... Industry average = 5.7 % . Recall that NOPAT is net operating profit after taxes , and it is calculated as EBIT ( 1 − T ) = $ 283.8 ( 0.6 ) = $ 170.3 . Therefore , after operating costs and taxes , MicroDrive generates about 5.7 cents ...
... Industry average = 5.7 % . Recall that NOPAT is net operating profit after taxes , and it is calculated as EBIT ( 1 − T ) = $ 283.8 ( 0.6 ) = $ 170.3 . Therefore , after operating costs and taxes , MicroDrive generates about 5.7 cents ...
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