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Series: 4
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Year: 2,016
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Edition: 4
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City: Toronto
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Pages: 907
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Pages In File: 907
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Language: English
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Topic: 1
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Identifier: 978‐1‐119‐25221‐4
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Org File Size: 34,273,510
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Extension: pdf
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Tags: finance
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Toc: Cover......Page 1Title Page......Page 5Copyright......Page 6Contents......Page 18Part 1: The Financial Environment......Page 25Chapter 1: An Introduction to Finance......Page 27Canada’s Balance Sheet......Page 28Financial Assets......Page 29Households......Page 31Channels of Intermediation......Page 33Intermediaries......Page 35The Major Borrowers......Page 38Financial Instruments......Page 40Financial Markets......Page 411.5 The Global Financial Community......Page 45Global Financial Markets......Page 461.6 The Structure of This Text......Page 48Summary......Page 49Chapter 2: Business (Corporate) Finance......Page 53Sole Proprietorships......Page 54Partnerships......Page 55Trusts......Page 56Corporations......Page 582.2 The Goals of the Corporation......Page 59The Agency Relationship and Agency Costs......Page 62Aligning Managers’ and Owners’ Interest......Page 64Corporate Governance......Page 682.4 Corporate Finance......Page 69Positions in Non-Financial Companies......Page 70Positions in Financial Companies......Page 72Summary......Page 74Part 2: Financial Analysis Tools......Page 79Chapter 3: Financial Statements......Page 81Canadian and International Standards......Page 82The Impact of Accounting Scandals......Page 84Bookkeeping......Page 87Accounting Conventions: The Basic Principles......Page 89The Balance Sheet and the Income Statement......Page 92Changing Accounting Assumptions......Page 94Tax Statements......Page 95Cash Flow Statements......Page 963.4 Canadian Pacific Accounting Statements......Page 99Canadian Pacific’s Balance Sheet......Page 100Canadian Pacific’s Cash Flow Statement......Page 1043.5 The Canadian Tax System......Page 107Corporate Taxes......Page 108Personal Tax......Page 112Summary......Page 115Chapter 4: Financial Statement Analysis and Forecasting......Page 121Return on Equity (ROE) and the DuPont System......Page 122Interpreting Ratios......Page 1254.3 Leverage Ratios......Page 1274.4 Efficiency Ratios......Page 1314.5 Productivity Ratios......Page 1344.6 Liquidity Ratios......Page 1364.7 Valuation Ratios......Page 139The Percentage of Sales Method......Page 1434.9 Formula Forecasting......Page 1504.10 CP’S External Financing Requirements......Page 152Summary......Page 156Part 3: Valuation Basics......Page 165Chapter 5: Time Value of Money......Page 1675.2 Simple Interest......Page 168Compounding (Computing Future Values)......Page 169Discounting (Computing Present Values)......Page 174Determining Rates of Return or Holding Periods......Page 175Ordinary Annuities......Page 177Annuities Due......Page 180Perpetui