Intermediate Financial Management

Dr. Eugene F. Brigham is a graduate research professor emeritus at the University of Florida, where he has taught since 1971. He received his M.B.A. and Ph.D. from the University of California-Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin and the University of California-Los Angeles. A former president of the Financial Management Association, he has written many journal articles on the cost of capital, capital structure and other aspects of financial management. He has authored or co-authored 10 textbooks on managerial finance and managerial economics that are used at more than 1,000 universities in the United States and have been translated into 11 languages worldwide. In addition to his academic writing, Dr. Brigham continues to teach, consult and complete research. He has served as a consultant to many corporations and government agencies, including the Federal Reserve Board, the Federal Home Loan Bank Board, the U.S. Office of Telecommunications Policy and the RAND Corp. He has also testified as an expert witness in numerous electric, gas and telephone rate cases at both federal and state levels. Dr. Brigham spends his spare time on the golf course, enjoying time with his family and dogs and tackling outdoor adventure activities such as biking through Alaska. Dr. Phillip R. Daves is an associate professor of finance at the University of Tennessee in Knoxville. His research interests encompass health care finance, asset pricing, derivative securities and dividend policy. He has published papers in The Journal of Finance, The International Journal of Finance, Applied Financial Economics, Journal of Financial Practice and Education and The Journal of Financial and Strategic Decisions. Dr. Daves teaches at the undergraduate, M.B.A., and Ph.D. levels, where his special interests in teaching include health care finance, investments, financial management and asset pricing. He consults for a range of large and small companies as well as the state of Tennessee. His consulting focuses on business valuation, compensation, value-based management and health care policy. Dr. Daves received his B.A. in economics from Davidson College, his M.S. in mathematics and his Ph.D. in finance from the University of North Carolina at Chapel Hill.

• Part IFundamental Concepts of Corporate Finance1 An Overview of Financial Management and the Financial Environment 2 Risk and Return: Part I 3 Risk and Return: Part II 4 Bond Valuation 5 Financial Options 6 Accounting for Financial Management 7 Analysis of Financial Statements Part IICorporate Valuation 8 Basic Stock Valuation 9 Corporate Valuation and Financial Planning 10 Corporate Governance 11 Determining the Cost of Capital Part IIIProject Valuation 12 Capital Budgeting: Decision Criteria 13 Capital Budgeting: Estimating Cash Flows and Analyzing Risk 14 Real Options PART IVStrategic Financing Decisions 15 Distributions to Shareholders: Dividends and Repurchases 16 Capital Structure Decisions 17 Dynamic Capital Structures and Corporate Valuation PART V Tactical Financing Decisions 18 Initial Public Offerings, Investment Banking, andFinancial Restructuring 19 Lease Financing 20 Hybrid Financing: Preferred Stock, Warrants, and Convertibles PART VIWorking Capital Management 21 Supply Chains and Working Capital Management22 Providing and Obtaining Credit 23 Other Topics in Working Capital Management PART VIISpecial Topics 24 Enterprise Risk Management 25 Bankruptcy, Reorganization, and Liquidation 26 Mergers and Corporate Control 27 Multinational Financial Management Web ChaptersChapter 28 Time Value of MoneyChapter 29 Basic Financial Tools: A ReviewChapter 30 Pension Plan ManagementChapter 31 Financial Management in Not-for-Profit BusinessesAppendixesAppendix A Values of the Areas under the Standard NormalDistribution Function Appendix B Answers to End-of-Chapter Problems Appendix C Selected Equations Glossary Name Index Subject Index Web Extension 1-A A n Overview of DerivativeWeb Extension 1-B A Closer Look at the Stock MarketsWeb Extension 2-A Continuous Probability DistributionsWeb Extension 2-B Estimating Beta with a Financial CalculatorWeb Extension 4-A A Closer Look at Zero Coupon and other OID BondsWeb Extension 4-B A Closer Look at TIPS: Treasury Inflation-Protected SecuritiesWeb Extension 4-C A Close Look at Bond Risk: DurationWeb Extension 4-D The Pure Expectations Theory and Estimation of Forward RatesWeb Extension 6-A T he Federal Income Tax System for IndividualsWeb Extension 8-A Derivation of Valuation EquationsWeb Extension 11-A T he Required Return Assuming NonConstant Dividends and Stock RepurchasesWeb Extension 12-A T he Accounting Rate of Return (ARR)Web Extension 13-A Certainty Equivalents and Risk-Adjusted Discount RatesWeb Extension 14-A The Abandonment Real OptionWeb Extension 14-B Risk-Neutral ValuationWeb Extension 16-A Degree of LeverageWeb Extension 18-A Rights OfferingsWeb Extension 19-A Leasing FeedbackWeb Extension 19-B Percentage Cost AnalysisWeb Extension 19-C Leveraged LeasesWeb Extension 20-A Calling Convertible IssuesWeb Extension 21-A Secured Short-Term FinancingWeb Extension 25-A Multiple Discriminant AnalysisWeb Extension 26-A Projecting Consistent Debt and Interest ExpensesWeb Extension 28-A The Tabular ApproachWeb Extension 28-B Derivation of Annuity FormulasWeb Extension 28-C Continuous Compounding