E-Book Overview
Focus on the financial concepts, skills, and technological applications that are most critical for MBA students in today's workplace with Ehrhardt/Brigham's CORPORATE FINANCE: A FOCUSED APPROACH, 4E. This lean text provides an in-depth treatment of all topics essential to corporate finance within a streamlined presentation that you can complete in a single semester. Your students review the latest financial developments -- from the collapse of the sub-prime mortgage market to the financial and global economic crisis -- as this edition shows them how to maximize a firm's value in today's changed world. Numerous recent examples illustrate the relevance of what students are learning, while Excel Tool Kits, "Build a Model" problems, and Mini-Case Spreadsheets help students master the many functions of Excel. Students even gain hands-on experience with the same tool Wall Street professionals use daily with new Thomson ONE-Business School Edition problems. Trust this book's concise, focused presentation to clearly demonstrate how and why corporations make specific financial decisions.
E-Book Content
FREQUENTLY USED SYMBOLS ACP ADR APR AR b bL bU BEP BVPS CAPM CCC CF CFPS CR CV Δ Dps Dt DCF D/E DPS DRIP DRP DSO EAR EBIT EBITDA EPS EVA F FCF FVN FVAN g I I/YR INT IP IPO IRR LP M M/B MIRR MRP MVA n N N(di) NOPAT NOWC NPV P Pc
Average collection period American Depository Receipt Annual percentage rate Accounts receivable Beta coefficient, a measure of an asset’s market risk Levered beta Unlevered beta Basic earning power Book value per share Capital Asset Pricing Model Cash conversion cycle Cash flow; CFt is the cash flow in Period t Cash flow per share Conversion ratio Coefficient of variation Difference, or change (uppercase delta) Dividend of preferred stock Dividend in Period t Discounted cash flow Debt-to-equity ratio Dividends per share Dividend reinvestment plan Default risk premium Days sales outstanding Effective annual rate, EFF% Earnings before interest and taxes; net operating income Earnings before interest, taxes, depreciation, and amortization Earnings per share Economic Value Added (1) Fixed operating costs (2) Flotation cost Free cash flow Future value for Year N Future value of an annuity for N years Growth rate in earnings, dividends, and stock prices Interest rate; also denoted by r Interest rate key on some calculators Interest payment in dollars Inflation premium Initial public offering Internal rate of return Liquidity premium (1) Maturity value of a bond (2) Margin (profit margin) Market-to-book ratio Modified Internal Rate of Return Maturity risk premium Market Value Added Number of shares outstanding Calculator key denoting number of periods Represents area under a standard normal distribution function Net operating profit after taxes Net operating working capital Net present value (1) Price of a share of stock in Period t; P0 = price of the stock today (2) Sales price per unit of product sold Conversion price
Pf Ph PN P/E PMT PPP PV PVAN Q QBE r ¯r ^r r* rd re rf rh ri rM rNOM rps rPER rRF rs ρ ROA ROE RP RPM RR S
SML ∑ σ σ2 t T TVN TIE V VB VL Vop Vps VU VC w wd wps ws wce WACC X YTC YTM
Price of good in foreign country Price of good in home country A stock’s horizon, or terminal, value Price/earnings ratio Payment of an annuity Purchasing power parity Present value Present value of an annuity for N years Quantity produced or sold Breakeven quantity (1) A percentage discount rate, or cost of capital; also denoted by i (2) Nominal risk-adjusted required rate of return “r bar,” historic, or realized, rate of return “r hat,” an expected rate of return Real risk-free rate of return Before-tax cost of debt Cost of new common stock (outside equity) Interest rate in foreign country Interest rate in home country Required return for an individual firm or security Return for “the market