Introduction To Corporate Finance: Managing Canadian Firms In A Global Environment

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• Series: 4

• Year: 2,016

• Edition: 4

• City: Toronto

• Pages: 907

• Pages In File: 907

• Language: English

• Topic: 1

• Identifier: 978‐1‐119‐25221‐4

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• Tags: finance

• Toc: Cover......Page 1 Title Page......Page 5 Copyright......Page 6 Contents......Page 18 Part 1: The Financial Environment......Page 25 Chapter 1: An Introduction to Finance......Page 27 Canada’s Balance Sheet......Page 28 Financial Assets......Page 29 Households......Page 31 Channels of Intermediation......Page 33 Intermediaries......Page 35 The Major Borrowers......Page 38 Financial Instruments......Page 40 Financial Markets......Page 41 1.5 The Global Financial Community......Page 45 Global Financial Markets......Page 46 1.6 The Structure of This Text......Page 48 Summary......Page 49 Chapter 2: Business (Corporate) Finance......Page 53 Sole Proprietorships......Page 54 Partnerships......Page 55 Trusts......Page 56 Corporations......Page 58 2.2 The Goals of the Corporation......Page 59 The Agency Relationship and Agency Costs......Page 62 Aligning Managers’ and Owners’ Interest......Page 64 Corporate Governance......Page 68 2.4 Corporate Finance......Page 69 Positions in Non-Financial Companies......Page 70 Positions in Financial Companies......Page 72 Summary......Page 74 Part 2: Financial Analysis Tools......Page 79 Chapter 3: Financial Statements......Page 81 Canadian and International Standards......Page 82 The Impact of Accounting Scandals......Page 84 Bookkeeping......Page 87 Accounting Conventions: The Basic Principles......Page 89 The Balance Sheet and the Income Statement......Page 92 Changing Accounting Assumptions......Page 94 Tax Statements......Page 95 Cash Flow Statements......Page 96 3.4 Canadian Pacific Accounting Statements......Page 99 Canadian Pacific’s Balance Sheet......Page 100 Canadian Pacific’s Cash Flow Statement......Page 104 3.5 The Canadian Tax System......Page 107 Corporate Taxes......Page 108 Personal Tax......Page 112 Summary......Page 115 Chapter 4: Financial Statement Analysis and Forecasting......Page 121 Return on Equity (ROE) and the DuPont System......Page 122 Interpreting Ratios......Page 125 4.3 Leverage Ratios......Page 127 4.4 Efficiency Ratios......Page 131 4.5 Productivity Ratios......Page 134 4.6 Liquidity Ratios......Page 136 4.7 Valuation Ratios......Page 139 The Percentage of Sales Method......Page 143 4.9 Formula Forecasting......Page 150 4.10 CP’S External Financing Requirements......Page 152 Summary......Page 156 Part 3: Valuation Basics......Page 165 Chapter 5: Time Value of Money......Page 167 5.2 Simple Interest......Page 168 Compounding (Computing Future Values)......Page 169 Discounting (Computing Present Values)......Page 174 Determining Rates of Return or Holding Periods......Page 175 Ordinary Annuities......Page 177 Annuities Due......Page 180 Perpetui