Table of Contents:
Acknowledgments of Subject Matter Experts xi For the Student xiii
Session 1 1
Section A: Financial Statement Analysis 3
Session 1 Overview 3
Section A, Topic 1: Basic Financial Statement Analysis 6
Section A, Topic 2: Financial Ratios 13
Session 1 Wrap-Up 38
Session 2 39
Session 1 Recap 40
Session 2 Overview 40
Session 2 Exercise 41
Section A, Topic 3: Profitability Analysis 41
Session 2 Wrap-Up 62
Session 3 63
Session 2 Recap 64
Session 3 Overview 64
Study Tips 65
Sessions 1 and 2 Recap 66
Session 3 Exercise: Financial Statement Analysis Ratios 67
Session 3 Exercise Solution: Financial Statement Analysis Ratios 68
Section A, Topic 4: Special Issues 76
Section A Practice Questions 100
Session 3 Wrap-Up 101
Session 4 103
Session 3 Recap 104
Session 4 Overview 104
Section B: Corporate Finance 105
Section B, Topic 1: Risk and Return 105
Session 4 Exercise: Capital Asset Pricing Model 120
Session 4 Exercise Solution: Capital Asset Pricing Model 121
Section B, Topic 2: Long-Term Financial Management 122
Session 4 Wrap-Up 136
Session 5 137
Session 4 Recap 138
Session 5 Overview 138
Section B, Topic 2: Long-Term Financial Management (cont.) 139
Session 5 Exercise: Weighted Average Cost of Capital 160
Session 5 Exercise Solution: Weighted Average Cost of Capital 161
Section B, Topic 3: Raising Capital 163
Session 5 Wrap-Up 172
Session 6 173
Session 5 Recap 174
Session 6 Overview 174
Section B, Topic 4: Working Capital Management 175
Section B, Topic 5: Corporate Restructuring 194
Section B, Topic 6: International Finance 197
Session B, Practice Questions 206
Session 6 Wrap-Up 207
Session 7 209
Session 6 Recap 210
Session 7 Overview 210
Section C: Decision Analysis 211
Section C, Topic 1: Cost/Volume/Profit Analysis 225
Session 7 Exercise Solution: Break-Even Essay 228
Section C, Topic 2: Marginal Analysis 229
Session 7 Wrap-Up 240
Session 8 241
Session 7 Recap 242
Session 8 Overview 242
Session 8 Exercise 1: Breakeven and Special Order 243
Session 8 Exercise 1 Solution: Breakeven and Special Order 245
Session 8 Exercise 2: Special-Order Cost Analysis 247
Session 8 Exercise 2 Solution: Special-Order Cost Analysis 248
Session 8 Exercise 3: Make versus Buy Cost Analysis 250
Session 8 Exercise 3 Solution: Make versus Buy Cost Analysis 251
Section C, Topic 3: Pricing 252
Session 8 Exercise 4: Target Costing 274
Session 8 Exercise 4 Solution: Target Costing 275
Session 8 Exercise 5: Cost-Plus Target Rate of Return Pricing 277
Session 8 Exercise 5 Solution: Cost-Plus Target Rate of Return Pricing 278
Session 8 Wrap-Up 279
Session 9 281
Session 8 Recap 282
Section D: Risk Management 282
Session 9 Overview 283
Section D, Topic 1: Enterprise Risk 283
Section D Conclusion 311
Session 9 Wrap-Up 312
Session 10 313
Session 9 Recap 314
Session 10 Overview 314
Section E: Investment Decisions 315
Section E, Topic 1: Capital Budgeting Process 315
Section E, Topic 2: Discounted Cash Flow Analysis 329
Session 10 Wrap-Up 345
Session 11 347
Session 10 Recap 348
Session 11 Overview 348
Session 11 Exercise 1: Capital Budgeting 350
Session 11 Exercise 1 Solution: Capital Budgeting 351
Session 11 Exercise 2: Net Present Value of Two Alternatives 353
Session 11 Exercise 2 Solution: Net Present Value of Two Alternatives 354
Section E, Topic 3: Payback and Discounted Payback 355
Session 11 Exercise 3: Discounted Payback with Uniform Net Cash Flow 366
Session 11 Exercise 3 Solution: Discounted Payback with Uniform Net Cash Flow 367
Section E, Topic 4: Risk Analysis in Capital Investment 369
Session 11 Wrap-Up 381
Session 12 383
Session 11 Recap 384
Session 12 Overview 384
Section E Practice Questions 385
Section F Professional Ethics 386
Section F, Topic 1: Ethical Considerations for Management Accounting and Financial Management Professionals 387
Session 12 Exercise: Ethics Scenario—FullRange, Inc. 396
Session 12 Exercise Solution: Ethics Scenario—FullRange, Inc. 397
Section F, Topic 2: Ethical Considerations for the Organization 404
Section F Practice Questions 417
Session 12 Wrap-Up 417
