Business finance
Type
Book
Authors
ISBN 13
9789712380082
Category
ENTREP
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Publication Year
2017
Publisher
REX Book Store, Philippines
Pages
vi, 147 pages
Subject
General management
Abstract
Business Finance provides students with basic concepts on corporate finance, investment management, and personal finance. It also provides an extensive discussion on financial statement analysis and how to evaluate the company’s quality of earnings. This work text includes exercises and cases that depicts the Philippine setting. Based on publicly available information, listed Philippine Companies were used for some exercises and illustrations.
Chapter 1: Introduction to Financial Management. This chapter introduces the Students with the overriding objective of managers in managing a company. It also gives an overview of the financial system which includes the players and the different financial instruments that are available in the market. This chapter also discusses organizational chart and highlights the roles of a Vice President for Finance.
Chapter 2: Review of Financial Statement Preparation, Analysis, and Interpretation. This chapter describes the information that can be found from the different financial statements. It also emphasizes the importance of the notes to financial statements in analyzing a company and includes a brief review of the different steps followed in preparing financial statements. The main feature of this chapter is financial statement analysis where the different tools for analyzing a company are discussed. These tools include the different financial ratios, vertical and horizontal analysis, and how to evaluate the quality of earnings of a company. The last section of this chapter discusses the limitations of financial statement analysis.
Chapter 3: Planning and Working Capital Management. The first part of this chapter is about planning: its importance and the different steps followed in planning. It also discusses how different types of budgets are prepared such as the sales budget and the production budget. Using the financial statement method, it also explains how projected financial statements are prepared. The second part is about working capital management. It describes the different working capital financing policies and their implications on the profitability and default risk of a company. The management of the different working capital accounts such as cash, accounts receivable, and inventories is likewise discussed in this chapter.
Chapter 4: Sources and Uses of Short-term and Long-term Funds. This chapter describes the different sources of short-term and long-term funds and the more appropriate uses for these different sources. It also discusses the advantages and disadvantages of debt financing and equity financing as well as the requirements of Some ofthese funding sources. This chapter also explains the reasons why equity financing is more expensive than debt financing. The obligations of a borrower to its creditors are also explained in this chapter. The general requirements for a bank loan and the basic processes followed for a loan application and its approval are described in the appendices.
Chapter 5: Basic Long-term Financial Concepts. This chapter covers the mathematics of finance with focus on the time value of money. The concept of interest is explained particularly the difference between simple and compound interest. Future and present value computations are discussed using different cash flow patterns. Basic time value of money applications are illustrated including loan amortization examples, effective interest rate calculations, and the net present value method in assessing the financial feasibility of projects.
Chapter 6: Introduction to Investments. This chapter introduces students to different types of investments such as bank deposits, bonds, stocks and mutual funds. The advantages and disadvantages of each alternative investment are also discussed. Basic risk and risk-return measures are also highlighted in this chapter.
Chapter 7: Managing Personal Finance. This chapter offers the basic guidelines and principles on how to save and invest personal funds. The importance of financial planning to an individual is emphasized in this chapter. It also provides illustrative examples on how the basic concepts in investing learned in the previous chapter can be applied to managing personal funds.
Chapter 1: Introduction to Financial Management. This chapter introduces the Students with the overriding objective of managers in managing a company. It also gives an overview of the financial system which includes the players and the different financial instruments that are available in the market. This chapter also discusses organizational chart and highlights the roles of a Vice President for Finance.
Chapter 2: Review of Financial Statement Preparation, Analysis, and Interpretation. This chapter describes the information that can be found from the different financial statements. It also emphasizes the importance of the notes to financial statements in analyzing a company and includes a brief review of the different steps followed in preparing financial statements. The main feature of this chapter is financial statement analysis where the different tools for analyzing a company are discussed. These tools include the different financial ratios, vertical and horizontal analysis, and how to evaluate the quality of earnings of a company. The last section of this chapter discusses the limitations of financial statement analysis.
Chapter 3: Planning and Working Capital Management. The first part of this chapter is about planning: its importance and the different steps followed in planning. It also discusses how different types of budgets are prepared such as the sales budget and the production budget. Using the financial statement method, it also explains how projected financial statements are prepared. The second part is about working capital management. It describes the different working capital financing policies and their implications on the profitability and default risk of a company. The management of the different working capital accounts such as cash, accounts receivable, and inventories is likewise discussed in this chapter.
Chapter 4: Sources and Uses of Short-term and Long-term Funds. This chapter describes the different sources of short-term and long-term funds and the more appropriate uses for these different sources. It also discusses the advantages and disadvantages of debt financing and equity financing as well as the requirements of Some ofthese funding sources. This chapter also explains the reasons why equity financing is more expensive than debt financing. The obligations of a borrower to its creditors are also explained in this chapter. The general requirements for a bank loan and the basic processes followed for a loan application and its approval are described in the appendices.
Chapter 5: Basic Long-term Financial Concepts. This chapter covers the mathematics of finance with focus on the time value of money. The concept of interest is explained particularly the difference between simple and compound interest. Future and present value computations are discussed using different cash flow patterns. Basic time value of money applications are illustrated including loan amortization examples, effective interest rate calculations, and the net present value method in assessing the financial feasibility of projects.
Chapter 6: Introduction to Investments. This chapter introduces students to different types of investments such as bank deposits, bonds, stocks and mutual funds. The advantages and disadvantages of each alternative investment are also discussed. Basic risk and risk-return measures are also highlighted in this chapter.
Chapter 7: Managing Personal Finance. This chapter offers the basic guidelines and principles on how to save and invest personal funds. The importance of financial planning to an individual is emphasized in this chapter. It also provides illustrative examples on how the basic concepts in investing learned in the previous chapter can be applied to managing personal funds.
Description
Illustration ; Newsprint ; 26 cm
Includes appendices and index
Includes appendices and index
Number of Copies
3
