Intermediate Financial Management (with Thomson One)

Changes in Equilibrium Stock Prices 171,
The Efficient Markets Hypothesis 173,
Levels of Market Efficiency 173,
Implications of Market Efficiency 174
Actual Stock Prices and Returns 175
Investing in International Stocks 175,
Stock Market Reporting 177
Preferred Stock 178
Box: A Nation of Traders 179
Summary 179
Chapter 6
Financial Options 188
Beginning-of-Chapter Questions 189
Financial Options 189
Option Types and Markets 189, Factors
That Affect the Value of a Call Option
191, Exercise Value versus Option
Price 192
Box: Reporting Employee Stock Options 195
Introduction to Option Pricing Models: The
Binomial Approach 195
The Black-Scholes Option Pricing Model
(OPM) 200
OPM Assumptions and Equations 200, OPM
Illustration 202
Box: Taxes and Stock Options 205
The Valuation of Put Options 206
Applications of Option Pricing in Corporate
Finance 207
Real Options 207, Risk Management 207,
Capital Structure Decisions 208,
Compensation Plans 209
Summary 209
Chapter 7
Accounting for Financial Management 213
Beginning-of-Chapter Questions 214
Financial Statements and Reports 214
Box: Corporate Valuation and Financial
Statements 215
The Balance Sheet 216
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The Income Statement 217
Statement of Retained Earnings 218
Net Cash Flow 219
Box: Financial Analysis on the Internet 220
Statement of Cash Flows 222
Modifying Accounting Data for Managerial
Decisions 224
Operating Assets and Total Net Operating
Capital 224, Net Operating Profit after
Taxes (NOPAT) 227
Box: Financial Bamboozling: How to
Spot It 228
Free Cash Flow 228, Calculating Free Cash
Flow 229, The Uses of FCF 230, FCF and
Corporate Value 230, Evaluating FCF,
NOPAT, and Operating Capital 230
MVA and EVA 231
Market Value Added (MVA) 231, Economic
Value Added (EVA) 232
The Federal Income Tax System 235
Corporate Income Taxes 235, Taxation
of Small Businesses: S Corporations 239,
Personal Taxes 239
Summary 240
Chapter 8
Analysis of Financial Statements 249
Beginning-of-Chapter Questions 250
Ratio Analysis 250
Box: Corporate Valuation and Analysis of
Financial Statements 251
Liquidity Ratios 251
Ability to Meet Short-Term Obligations:
The Current Ratio 253, Quick, or Acid Test,
Ratio 253
Asset Management Ratios 254
Evaluating Inventories: The Inventory
Turnover Ratio 254, Evaluating Receivables:
The Days Sales Outstanding 255, Evaluating
Fixed Assets: The Fixed Assets Turnover
Ratio 256, Evaluating Total Assets: The
Total Assets Turnover Ratio 256