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I N S T R U C T O R S M A N U A L

F U N D A M E N T A L S

O F

F I N A N C I A L

M A N A G E M E N TC O N C I S E T H I R D E D I T I O N

EUGENE F. BRIGHAMUniversity of Florida

JOEL F. HOUSTONUniversity of Florida

H a r c o u r t C o l l e g e P u b l i ! e r

Fort Worth Philadelphia San Diego New York Orlando Austin San AntonioToronto Montreal London Sydney Tokyo

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Copyright !""! #y $ar%ourt& 'n%(

All rights reser)ed( No part o* this produ%t +ay #e reprodu%ed or trans+itted in any *or+ or #yany +eans e,%ept as pro)ided in the $ar%ourt end-user li%ense agree+ent *ound in the read+e*ile(

.e/uests *or per+ission to +ake %opies o* any part o* the work should #e +ailed to the *ollowingaddress0 Per+issions Depart+ent& $ar%ourt& 'n%(& 1!22 Sea $ar#or Dri)e& Orlando& Florida3!442-1222(

Portions o* this work were pu#lished in pre)ious editions(

Printed in the 5nited States o* A+eri%a

'S6N "-"3-"3!782-1

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CONTENTS OF THE INSTRUCTORS MANUAL

Preface

Alternative Formats for the Introductory Course vContents of the Instructors Manual v

Integrated Cases and Lecture Presentation Software v

Blueprints vi

lectronic Slide Show vii

!verhead "ransparencies viii

Spreadsheet Models viii

#orld #ide #e$ Site i%

Finance &ews#ire i%

Study 'uide i%

"est Ban( i%

"echnology Supplement %

Instructors )esource C*+)!M %i

!rdering Ancillary Materials %i

Conclusion %ii

Course Sylla$us %iii

Course Schedule %viii

"ransparency Pic(+up List %%

Chapter , An !verview of Financial Management ,+,

Chapter - Financial Statements. Cash Flow. and "a%es -+,

Chapter / Analysis of Financial Statements /+,

Chapter 0 Financial Planning and Forecasting 0+,

Chapter 1 "he Financial nvironment2 Mar(ets. Institutions.

and Interest )ates 1+,

Chapter 3 )is( and )ates of )eturn 3+,

Chapter 4 "ime 5alue of Money 4+,

Chapter 6 Bonds and "heir 5aluation 6+,

Chapter 7 Stoc(s and "heir 5aluation 7+,

Chapter ,8 "he Cost of Capital ,8+,

Chapter ,, "he Basics of Capital Budgeting ,,+,

iii

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Chapter ,- Cash Flow stimation and )is( Analysis ,-+,

Chapter ,/ Capital Structure and Leverage ,/+,

Chapter ,0 *istri$utions to Shareholders2 *ividends and

Share )epurchases ,0+,

Chapter ,1 #or(ing Capital Management ,1+,

Chapter ,3 Multinational Financial Management ,3+,

iv

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PREFACE

"his preface e%plains how we have used Fundamentals: Concise Third Edition.

and it then descri$es the instructional aids contained in the Instructors

Manualor availa$le separately from 9arcourt College Pu$lishers:

Alternative Formats for the Introductory Course

"here is no one $est way to teach the introductory finance class++the optimal

course structure varies with students $ac(grounds. instructors interests.

num$er of credit hours. and position of the course in the overall curriculum:

Further. since these factors change over time. most of us vary our approaches

from year to year: Still. you may find it useful to learn how Concisehas

$een used at Florida and elsewhere:

Concisewas designed for use in the introductory undergraduate finance course:

"his course is typically taught in one term: At Florida. we re;uire a one+

semester. 0+credit hour course that has appro%imately 16 fifty+minute class

periods: !ur sylla$us is provided later in this manual:

Contents of the Instructor9s Manual

"his Instructors Manual contains Learning !$ed the Instructors Manual$y chapter for your convenience:

Integrated Cases and Lecture Presentation Software

!ne of the most important pedagogic aids in Conciseis the set of ?Integrated

Cases@ provided with the end+of+chapter pro$lems: In past editions of

Concise. these cases were called ?Integrative Pro$lems.@ $ut since they are

actually mini cases. we changed the names: #hatever they are called. the

integrated cases have $een e%tremely well received $y instructors and students

ali(e: "hey provide an e%cellent vehicle for covering the (ey elements of

each chapter in a coherent. systematic. and interesting manner: "hey are

e;ually effective in small. discussion+oriented classes or in larger lecture+

$ased classes:

"he cases are coordinated with the opening vignettes whose purpose is tomotivate students to focus on the chapter: For e%ample. each vignette

provides $ac(ground material on a company and provides a lead+in to the

chapter: "he case then covers the (ey elements of the chapter. and its

solution is set up in a lecture format. with more detail than our normal end+

of+chapter pro$lem solutions:

v

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Since the cases are highly structured. one might thin( that they seriously

reduce instructors fle%i$ility: 9owever. this is less true than you would

imagine. $ecause the cases are written in a manner that ma(es it easy to

delete sections. to add new material. and to provide alternative andor

supplemental e%amples:

"he cases are good lecture vehicles for three reasons: First. they reduceinstructors preparation time++we spent a tremendous amount of time producing

carefully structured ?lecture pro$lems@ so that instructors will not have to:

Second. students li(e lectures $ased on the cases $ecause this ensures that

the lecture is consistent with the te%t. and that the two reinforce one

another: "hird. the case+oriented lectures are useful for $oth prepared and

unprepared students. and that is helpful for instructors whose students dont

always read the material $efore class:

Since our surveys indicate that more and more instructors are $asing their

lectures on the integrated cases. we developed a set of electronic slides

Lecture Presentation Software that can $e used in lieu of the transparency

masters: *r: Larry #ol(en of "e%as A D M Eniversity $rought this idea to our

attention and helped in the initial development of the electronic slides:Both transparencies and the $lac($oard can $e used effectively. $ut all of the

instructors who participated in de$ugging the slide show concluded that it

dominates the older technologies: lectronic slides are easier to use than

transparencies and far easier than the $lac($oard. crisper. more colorful.

and more complete. and they capture the attention of students $rought up in

the "5 generation:

#e originally thought the slides would $e too infle%i$le. $ut that was not the

case++it is e%tremely easy to $rea( away from the slides and use the

$lac($oard to clarify e%amples. to ma(e additional points. and the li(e: All

in all. the electronic slides really are a great addition to our ancillary

pac(age. and all instructors would $e well advised to get a set. insert the

C*+)!M. and run a ;uic( slide show to get an idea of

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Blueprints

Students often have trou$le getting good notes in class $ecause they must

choose $etween writing things down versus listening and thin(ing a$out what is

$eing said: !ur Blueprintssupplement solves this pro$lem $y providing an

efficient vehicle for students to get good notes. and it can $e reproducedlocally and purchased $y students at a relatively low cost:

Its purpose is to guide students through the chapter material: Since the

integrated cases systematically cover the (ey points in the chapters. and

since the e%amples in those cases are well designed to e%plain $oth logical

relationships and calculations. we use them as the $asis for $oth Blueprints

and our lectures:

As ones lectures move away from the $lac($oard. it $ecomes increasingly

important to provide students with a ?hard copy@ of the lecture materials++

otherwise. they cannot (eep up. their class notes will $e incomplete. and

$ecause they are trying to get notes. they cannot pay attention to the points

we are ma(ing: #ith this in mind. we have continually modified Blueprintstoma%imi>e its $enefit to students:

!riginally. Blueprints contained the lecture case and partially completed

solutions that the students completed during the course of the lecture: It

wor(ed well. and we got favora$le feed$ac( from our students and from other

instructors who used it in their classes: 9owever. a few years ago when we

went to the slide show format. we concluded that students would $e $est served

with a completely revamped version of Blueprints: ach chapter of Blueprints

$egins with the case itself. followed $y copies of the slides. three+to+a+page

on the left side and with space for notes on the right side: "hen. at the end

of each chapter. we include several e%am+type pro$lems that we cover in class

if we have time or else let students wor( on their own: &ow students can

watch and listen to the lecture. yet still end up with a good set of notes:

Blueprints offers several other advantages: First. it gives us more

fle%i$ility to present alternative e%amples. to discuss current events. and

the li(e. $ecause if we do not cover everything in the case hence chapter.

the students will still have a complete set of notes: Second. we use our copy

as our lecture notes: #e ma(e notes of what we plan to say a$out the slides

in the space to the right of the slides. or on attached post+it sheets: "his

helps us. and it also helps our students++they can always relate the e%amples

we give to the $asic slide. hence the slides and our e%amples $oth reinforce

one another and (eep us and the students on trac(:

Electronic Slide Show

As mentioned earlier. a set of electronic slides has $een developed:

Previously. we used the Integrated Cases. transparencies. and a $lac( $oard as

a complete lecture system. and with good results: But

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advances influencing the way we learn and teach: "hus. along with Larry

#ol(en. we created a computeri>ed ?slide show@ lecture presentation that

matches the Integrated Case solutions: In addition. Christopher Bu>>ard has

made improvements to the slidesadding even more current data and pictures to

them: "he slides are developed in ?layers.@ which ma(es them more effective

than static slides and more similar to a $lac($oard presentation. $ut neater:

For e%ample. we can create a slide that $egins with an e;uation that shows howhistorical rates of return are calculated. then $rings in illustrative data.

then plots the data on a graph. and then uses the graph to e%plain the concept

of a $eta coefficient: Color coding is used to differentiate the stoc( and

mar(et returns. which helps (eep things clear and in focus:

!n simpler slides. one can clic( down a list. much li(e moving the piece of

ta$let paper used to conceal parts of a transparency until you want people to

see it: But clic(ing is easier. static electricity is never a pro$lem. and

things are always in alignment and never upside down or $ac(wardsG

"he slide show is availa$le in Microsoft PowerPointH: Any instructors with

access to Microsoft PowerPoint will have the a$ility to customi>e the Lecture

Presentation Software:

verhead !ransparencies

Because this te%t is a ?concise@ version of Fundamentals of Financial

Management no new overhead transparencies were developed: Instead. we have

prepared a pic(+up list of Fundamentalstransparencies that can $e used to

cover the material in each Concisechapter: #here material has $een revised

or added in Concise. we suggest the use of relevant slides from Concises

electronic slide show: "he electronic slides may $e printed and

transparencies developed: "he transparency pic(+up list appears at the end of

the preface after the sylla$us and course schedule information:

Spreadsheet Models

Spreadsheet programs such as Microsoft Excelare ideally suited for analy>ing

many financial issues. and a (nowledge of spreadsheets is rapidly $ecoming

essential for people in $usiness: "herefore. we ?moderni>ed@ the $oo( $y

indicating how spreadsheets are used to deal with the issues discussed in the

te%t:

#e developed a spreadsheet model for each chapter in the $oo( e%cept Chapter

,: "hese models show e%actly how the decisions dealt with in the chapter can

$e analy>ed with an Excelspreadsheet: "herefore. our models include a good$it of e%planation and serve $oth as an Exceltutorial and as a template for

analy>ing whatever financial issues are covered in the particular chapter:

"he models are contained on the instructors resource C*+)!M and on the C*+)!M

that accompanies each te%t$oo(: "hey are also accessi$le from the 9arcourt

College we$ site: "he models are not necessary for going through the $oo( and

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learning the essential financial concepts: 9owever. if a student wants to

learn how these concepts are implemented in the real world. and thus get a leg

up in the

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!est Ban&

"he Test Banthat accompanies Conciseis availa$le , in $ound+$oo( form.

- as self+contained computer software the standard computeri>ed test $an(.

and / as Microsoft Word files: At Florida. the faculty prefer the

Microsoft Wordformat $ecause we and our secretaries are very familiar withthat software. and it is very easy for us and them to ma(e any desired

changes in individual ;uestions. to add new ;uestions. and. of course. to

e%tract ;uestions from the file when we construct a specific e%am:

"he Test Ban contains over ,.-88 individual multiple+choice ;uestions and

pro$lems: "he ;uestions and pro$lems are all machine gradea$le. and we have

used them often enough so that most of the am$iguities that fre;uently plague

o$ed versions of the test $an( allow users to select test ;uestions

and pro$lems from the $an(. add or modify them as necessary. and then print

the final product: "he Microsoft Wordversion uses an endnote format thatma(es it very easy to create and reorder e%ams since , the ;uestions and

pro$lems selected are automatically renum$ered as you create an e%am. and -

the solutions to the pro$lems selected are also ?pulled out.@ renum$ered. and

made availa$le for review and printing:

#e personally resisted using multiple+choice tests for years. $ut due to our

own growing class si>es and pressure from adopters. we decided to assem$le

the $est possi$le set of o$

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"herefore. we decided to write a ,8+ to ,1+page set of instructions that would

tell our students what they needed for the course: ventually. we produced

similar instructions for the five leading calculators / 9Ps. a "I. and a

SharpJ those instructions are contained in the Technolog! Supplement:

#e also decided to ma(e availa$le spreadsheet tutorials that students can use

to learn the $asics of spreadsheet modeling: Although the spreadsheettutorials are $ased on Excel. the command structure of other spreadsheet

software pac(ages is sufficiently similar to permit the tutorials to $e used

with whatever software is availa$le to students: "hese tutorials provide

students with an introduction to spreadsheet modeling and its usefulness in

financial management decision ma(ing: "hen. students can learn on their own

the s(ills necessary to create andor use spreadsheet models:

In addition to the calculator and spreadsheet tutorials. weve added a

#o$er#ointtutorial: "his tutorial covers all the $asics. and it will aid

$oth students who must ma(e presentations with #o$er#ointand instructors who

want to ma(e slides for their lectures:

Instructor's (esource C)*(M

"his innovative instructors resource system includes electronic versions of

the Instructors Manual. Word Test Ban. chapter spreadsheet models. solutions

to the end+of+chapter spreadsheet pro$lems. and #o$er#ointpresentations: It

is laid out so as to ma%imi>e accessi$ility and minimi>e search time:

rdering Ancillary Materials

Ancillary materials may $e ordered $y adopters through their local 9arcourt

College sales representative or directly from the national sales office2

9arcourt College Sales *epartment

-88 Academic #ay

"roy. M! 3//47

688 -/4+-331

"he Stud! "uide. which is purchased $y students from $oo(stores. can $e

ordered through your local $oo(store:

9arcourt College Pu$lishers will provide complimentary supplements or

supplement pac(ages to those adopters ;ualified under our adoption policy:

Please contact your sales representative to learn how you may ;ualify: If as

an adopter or potential user you receive supplements you do not need. pleasereturn them to your sales representative or send them to2

Attn2 )eturns *epartment

"roy #arehouse

031 South Lincoln *rive

"roy. M! 3//47

%i

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%ii

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Conclusion

#e have tried to ma(e this Instructors Manualas clear and error+free as

possi$leJ however. there are almost certainly some mista(es and unclear

sections: Any suggestions for improving the manual will $e greatly

appreciated: Address your correspondence to Koel 9ouston at the address

$elow:

ugene F: Brigham

Koel F: 9ouston

P:!: Bo% ,,4,36

*epartment of Finance. Insurance. and )eal state

#arrington College of Business

Eniversity of Florida

'ainesville. Florida /-3,,+4,36

April -88,

%iii

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SYLLABUS FOR FINANCE 3403

Finance 3403

Course Outline

Fall 2001

Instructor: Koel F: 9ouston/// BES

/7-+4103

!ffice 9ours2 M # ,82/8 A:M: + ,,2/8 A:M:. and $y

appointment:

Course Pre-requisite: AC' -8-, or an approved e;uivalent:

Required materials:

:F: Brigham and K: 9ouston. Fundamentals of Financial

Management: Concise Third Edition:

Course Pac(et for FI& /08/2 Includes the sylla$us. a calculator

tutorial. detailed solutions to some of the end+of+chapter

;uestions. and past e%ams:

Blueprints2 A Pro$lem &ote$oo(2 Includes a hard copy of the

computer slides presented in class as well as some sample e%am+

type ;uestions:

Calculator

ou must have a financial calculator to get through the course:

Many of the e%am pro$lems involve comple% arithmetic and financial

calculations++and a financial calculator is necessary to solve

them:

I recommend either the 9P+,8B or the 9P+,4B: "he ,8B does

everything needed in the course: I will use one in class and

e%plain how to wor( various pro$lems with it. so you can follow

lectures most easily if you use a ,8B: Moreover. the "As will all

(now how to help you with a ,8B. $ut you might have trou$le

getting help with another calculator: "he 9P+,4B does more and

costs more: Some argue that the ,4B is easier to use once you get

used to it: Also. some students argue that the ,4B is $etter to

have in some of the upper level Finance classes: Again. however.

everything in this class can $e done with a ,8B:

As you will soon see. the a$ility to use a financial calculator is

critical to success in the class: ou are responsi$le forlearning how to operate your financial calculator++and it is

crucial that you are familiar with your calculator $y the time we

$egin Chapter 4: Calculator tutorials for $oth the ,8B and ,4B are

included in the Course Pac(et:

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Ma(e sure that you $ring your calculator and your Blueprints to

class: Students may not share calculators on e%ams: Please $e

sure to chec( your $atteries $efore e%ams:

Optional materials:

Study 'uide for Fundamentals of Financial Management2 Concise

"hird dition: "his wor($oo( contains learning o$

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you (eep up with the assigned reading. and ma(e an effort to

wor( the relevant pro$lems:

/: "here are a num$er of learning aids offered in addition to the

regularly scheduled lectures and review sessions: ou should

utili>e those that may contri$ute to your understanding of the

material:

a "here are several teaching assistants associated with this

course: "he "As will hold office hours in Bryan ,-1A:

"he "A schedule will vary from wee( to wee( and will $e

posted , outside the Finance office. /-, BES. -

outside Bryan ,-1A. and / on the class we$ page: "he

"As (now the material ;uite well and they are more than

willing to help you. so you should use them: ou should

study the te%t. your notes. and the pro$lems. and then as(

the "As for help in clearing up any ;uestions you might

have:

"he head "A has also esta$lished an e+mail address for thecourse2 FI#3403$C%IP&C'(&)F*&+,): Students may use this

forum to as( administrative ;uestions a$out the course. or

to provide any comments they have a$out the class: "his

forum is not appropriate for answering long and detailed

;uestions a$out the course material++for those ;uestions

you should see the "As in person:

ou may thin( that your ;uestions are ?too dum$ to as(.@

$ut they arentG Finance covers some tough material. and

most students have trou$le with at least some of it: "he

"As have all gone through it recently. and they (now what

you are up against: "hey are also really nice people who

want very much to help you. so use themG

$ "apes of the lectures will $e maintained on file in the

Media Center for one wee( following the original

presentation: "apes can also $e purchased from Eniversity

Boo( and Supply:

0: "here is also a home page for Finance /08/ on the #orld #ide

#e$: "he address is

http2www:c$a:ufl:educlassesfin/08/inde%:html: "he class

we$ page will include the course outline. office hours

schedules. class e%amples. and e%am solutions: As time goes

$y. the resources availa$le on the class we$ page will e%pand.so it is worth chec(ing it from time to time:

+aminations: "here will $e three e%ams. two during the semester and one

during the final e%am wee(: "he e%am schedule is as follows2

First .idterm: /uesda" ep& 2 :00-:00 P&.&

econd .idterm: .onda" Oct& 2 :00-:00 P&.&

http://www.cba.ufl.edu/classes/fin3403/index.htmlhttp://www.cba.ufl.edu/classes/fin3403/index.html

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Final +am: /uesda" ,ec& 11 1:00-3:00 P&.&

%am locations will $e announced in class. and posted at Bryan

,-1. the FI&/086 notice $oard outside BES /-,. and on the class

we$ page:

our grade in the course will $e determined $ased on yourperformance on the three e%aminations: ach e%amination will

count as one+third of your final course grade:

"o determine your final grade in the course. we will first

calculate your total score as follows2

"otal Score ,st %am Score N -nd %am Score N Final %am

Score: our total score has a ma%imum of 38 points:

"o calculate the ?cutoffs@ for each course grade. we calculate

a weighted average of the lowest scores for each grade: So.

for e%ample. to determine the cutoff for an A2

Lowest A Lowest A. ,st %am N Lowest A. -nd %am N Lowest

A. Final %am:

Li(ewise. the lowest C grade would $e a weighted average of the

lowest C grades from each of the e%ams:

"herefore. if the curve was set such that you needed ,4 or

higher to get an A on the first e%am. ,3 or higher to get an A

on the second e%am. and ,4 or higher to get an A on the final.

the cutoff for an A in the course would $e 18 ,4 N ,3 N ,4:

In this hypothetical e%ample. if your total score is 18 points

or higher you would earn an A in the class: !$viously. the

actual cutoff for an A will depend on the curves set for the

individual e%aminations:

Please reco!ni5e t6at t6e si5e o7 t6is class ma8es it necessar"

7or t6e cuto77s to be 7irm i&e& t6ere 9ill be no roundin! up

re!ardless o7 6o9 close "ou are to t6e 6i!6er !rade&

/6ere 9ill be #O ma8eup eams& If you have a valid e%cuse for

missing either of the first two e%ams. your final grade will $e

$ased on your performance on the other two e%aminations++each

of these e%aminations will count as 18 percent of your final

grade: If you miss the final with a valid e%cuse. you must ma(e

it up the following term: If you do not have a valid e%cusefor missing an e%am. it will count as a >ero:

In order to $e e%cused from an e%am. the student must contact

mebe7ore t6e eam: If you cannot reach me. leave a message

with the department secretaries at /7-+8,1/: In most cases I

will re;uire students to provide me with additional

documentation to

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e%am: Please note that a simple note indicating that you were

seen at the health center the day of the e%am does notin and

of itself provide sufficient documentation: %cuses will $e

granted if the student is una$le to ta(e the e%am$ecause of

serious illness or in

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COURSE SCHEDULEFALL 2001

/6is sc6edule is etremel" tentatie and subject to c6an!e& (n" ariations

9ill be announced in class&

Aug -- IntroductionChapter ,2 An !verview of Financial Management

Aug -/ Chapter ,2 An !verview of Financial Management

Aug -4 Chapter -2 Financial Statements

Aug -6 Chapter -2 Financial Statements

Aug -7 Chapter /2 Analysis of Financial Statements

Aug /8 Chapter /2 Analysis of Financial Statements

ep 3 *('OR ,( ;#O C*(ation Schedule

liminate "4+-, through "4+-/ since this discussion has $een eliminated from

Integrated Case

Concise Chapter ,:

"6+, Bond 5aluation2 "erminology

"6+- 'eneral 5aluation Model"6+/ Bond 5aluation Model

"6+0 Bond 5aluation with Interest )ate Changes

"6+1 Bond 5alues over "ime

"6+3 ield to Maturity "M

"6+4 Current ield. Capital 'ains ield. and "otal )eturn

"6+6 Interest )ate Price )is( for ,8 Coupon Bonds with *ifferent

Maturities

"6+7 5aluation of Semiannual Coupon Bonds

"6+,8 %ample of Semiannual Coupon Bond 5aluation

"6+,, A) Illustration with Bonds

"6+,- ield to Call "C

"6+,/ "C versus "M

"6+,0 Bond )atings++!ne Measure of *efault )is(

"6+,1 Factors Affecting *efault )is( and Bond )atings

"6+,3 Ban(ruptcy and )eorgani>ation "erminology

"6+,4 Payment Priority in Li;uidation

Concise Chapter -:

"7+, Legal )ights and Privileges of Common Stoc(holders

"7+- *ifferent Approaches for 5aluing Common Stoc(

"7+/ 'eneral Stoc( 5aluation Model

"7+0 Constant 'rowth Stoc( 5aluation Model

"7+1 Constant 'rowth Stoc( 5aluation %ample

"7+3 Constant 'rowth *ividends and Present 5alue of *ividends

"7+4 *ividend and Capital 'ains ields"7+6 Tero 'rowth and Supernormal 'rowth

"7+7 Supernormal 'rowth Continued

"7+,8 &onconstant 'rowth2 Tero 'rowth. "hen Constant 'rowth

"7+,, *eclining 'rowth

"7+,- Free Cash Flow Method

"7+,/ "he fficient Mar(ets 9ypothesis M9

"7+,0 Preferred Stoc( 5aluation

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Concise Chapter %.:

",8+, Basic *efinitions

",8+- Cost of *e$t. (d, + "

",8+/ Cost of Preferred Stoc(. (p",8+0 Cost of )etained arnings. (s

",8+1 Cost of &ewly Issued Common Stoc(. (e",8+3 #eighted Average Cost of Capital. #ACC

",8+4 )is( and the Cost of Capital

",8+6 *ivisional Cost of Capital

",8+7 Procedures for *etermining Pro

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",0+,, Factors to Consider #hen sta$lishing Firms "arget Capital

Structure

",0+,- "a%es. Ban(ruptcy Costs. and 5alue of the Firm "rade+off

"heory

Concise Chapter %(: /Corresponds to FFM- Chapter %)0

",1+, *ividend Policy "heories",1+- *ividend Policy 9ypotheses

",1+/ )esidual *ividend Model Page ,

",1+0 )esidual *ividend Model2 An %ample Page -

",1+1 Summary of Factors Influencing *ividend Policy

",1+3 Advantages and *isadvantages of )esidual *ividend Policy

",1+4 *ividend )einvestment Plans *)IPs

",1+6 Steps for Setting *ividend Policy

",1+7 Stoc( )epurchases

",1+,8 Advantages and *isadvantages of )epurchases

",1+,, Stoc( *ividend vs: Stoc( Splits

Concise Chapter %): /Corresponds to FFM- Chapters %* and %+0

",3+, Selected )atios. SQI. Inc: e%cept SQI *S! should $e 01:3/ on a/31+day $asis

S,1+3. S,1+4 Cash conversion Cycle CCC

S,1+6 )ationale for 9olding Cash

",3+0 Cash Budget2 Purpose. "iming. and *ata )e;uired

",3+1 SQIs Cash Budget

",3+3 !ther Items for Inclusion in Cash Budget

",3+4 Categories of Inventory Costs

",3+6 lements of Credit Policy

",4+, #or(ing Capital Financing Policies

",4+- Moderate Financing Policy

",4+/ Conservative Financing Policy

",4+0 Short "erm Credit

S,1+/0++S,1+08 "rade Credit

liminate ",4+3 through ",4+,,

S,1+0, Commercial Paper

Concise Chapter %*: /Corresponds to FFM- Chapter %-0

",7+, Introduction to Multinational Financial Management

",7+- Multinational versus *omestic Financial Management

",7+/ Currency %change )ates

",7+0 Currency %change )ate Illustration

",7+1 uropean Monetary Enion Add 'reece to mem$er nations2