## Description

Solution Manual for Fundamentals of Financial Management 15th Edition by Eugene F. Brigham

Table of Contents

Part 1: Introduction to Financial Management

Chapter 1: An Overview of Financial Management

Putting Things in Perspective

1-1 What Is Finance?

1-2 Jobs in Finance

1-3 Forms of Business Organization

1-4 The Main Financial Goal: Creating Value for Investors

1-5 Stockholder-Manager Conflicts

1-6 Stockholder-Debtholder Conflicts

1-7 Balancing Shareholder Interests and the Interests of Society

1-8 Business Ethics

Tying It All Together

Self-Test Questions and Problems

Questions

Chapter 2: Financial Markets and Institutions

Putting Things in Perspective

2-1 The Capital Allocation Process

2-2 Financial Markets

2-3 Financial Institutions

2-4 The Stock Market

2-5 The Market for Common Stock

2-6 Stock Markets and Returns

2-7 Stock Market Efficiency

Tying It All Together

Self-Test Questions and Problems

Questions

Integrated Case

Part 2: Fundamental Concepts in Financial Management

Chapter 3: Financial Statements, Cash Flow, and Taxes

Putting Things in Perspective

3-1 Financial Statements and Reports

3-2 The Balance Sheet

3-3 The Income Statement

3-4 Statement of Cash Flows

3-5 Statement of Stockholders’ Equity

3-6 Uses and Limitations of Financial Statements

3-7 Free Cash Flow

3-8 MVA and EVA

3-9 Income Taxes

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Chapter 4: Analysis of Financial Statements

Putting Things in Perspective

4-1 Ratio Analysis

4-2 Liquidity Ratios

4-3 Asset Management Ratios

4-4 Debt Management Ratios

4-5 Profitability Ratios

4-6 Market Value Ratios

4-7 Tying the Ratios Together: The DuPont Equation

4-8 Potential Misuses of ROE

4-9 Using Financial Ratios to Assess Performance

4-10 Uses and Limitations of Ratios

4-11 Looking beyond the Numbers

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Chapter 5: Time Value of Money

Putting Things in Perspective

5-1 Time Lines

5-2 Future Values

5-3 Present Values

5-4 Finding the Interest Rate, I

5-5 Finding the Number of Years, N

5-6 Annuities

5-7 Future Value of an Ordinary Annuity

5-8 Future Value of an Annuity Due

5-9 Present Value of an Ordinary Annuity

5-10 Finding Annuity Payments, Periods, and Interest Rates

5-11 Perpetuities

5-12 Uneven Cash Flows

5-13 Future Value of an Uneven Cash Flow Stream

5-14 Solving for I with Uneven Cash Flows

5-15 Semiannual and Other Compounding Periods

5-16 Comparing Interest Rates

5-17 Fractional Time Periods

5-18 Amortized Loans

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Part 3: Financial Assets

Chapter 6: Interest Rates

Putting Things in Perspective

6-1 The Cost of Money

6-2 Interest Rate Levels

6-3 The Determinants of Market Interest Rates

6-4 The Term Structure of Interest Rates

6-5 What Determines the Shape of the Yield Curve?

6-6 Using the Yield Curve to Estimate Future Interest Rates

6-7 Macroeconomic Factors That Influence Interest Rate Levels

6-8 Interest Rates and Business Decisions

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Chapter 7: Bonds and Their Valuation

Putting Things in Perspective

7-1 Who Issues Bonds?

7-2 Key Characteristics of Bonds

7-3 Bond Valuation

7-4 Bond Yields

7-5 Changes in Bond Values over Time

7-6 Bonds with Semiannual Coupons

7-7 Assessing a Bond’s Riskiness

7-8 Default Risk

7-9 Bond Markets

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Chapter 8: Risk and Rates of Return

Putting Things in Perspective

8-1 The Risk-Return Trade-Off

8-2 Stand-Alone Risk

8-3 Risk in a Portfolio Context: The CAPM

8-4 The Relationship between Risk and Rates of Return

8-5 Some Concerns about Beta and the CAPM

8-6 Some Concluding Thoughts: Implications for Corporate Managers and Investors

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Chapter 9: Stocks and Their Valuation

Putting Things in Perspective

9-1 Legal Rights and Privileges of Common Stockholders

9-2 Types of Common Stock

9-3 Stock Price versus Intrinsic Value

9-4 The Discounted Dividend Model

9-5 Constant Growth Stocks

9-6 Valuing Nonconstant Growth Stocks

9-7 Enterprise-Based Approach to Valuation

9-8 Preferred Stock

Tying It All Together

Self–Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Appendix 9A: Stock Market Equilibrium

Part 4: Investing in Long-Term Assets: Capital Budgeting

Chapter 10: The Cost of Capital

Putting Things in Perspective

10-1 An Overview of the Weighted Average Cost of Capital (WACC)

10-2 Basic Definitions

10-3 Cost of Debt, rd(1-T)

10-4 Cost of Preferred Stock, rp

10-6 Cost of New Common Stock, re

10-7 Composite, or Weighted Average, Cost of Capital, WACC

10-8 Factors That Affect the WACC

10-9 Adjusting the Cost of Capital for Risk

10-10 Some Other Problems with Cost of Capital Estimates

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Chapter 11: The Basics of Capital Budgeting

Putting Things in Perspective

11-1 An Overview of Capital Budgeting

11-2 Net Present Value (NPV)

11-3 Internal Rate of Return (IRR)

11-4 Multiple Internal Rates of Return

11-5 Reinvestment Rate Assumptions

11-6 Modified Internal Rate of Return (MIRR)

11-7 NPV Profiles

11-8 Payback Period

11-9 Conclusions on Capital Budgeting Methods

11-10 Decision Criteria Used in Practice

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Chapter 12: Cash Flow Estimation and Risk Analysis

Putting Things in Perspective

12-1 Conceptual Issues in Cash Flow Estimation

12-2 Analysis of an Expansion Project

12-3 Replacement Analysis

12-4 Risk Analysis in Capital Budgeting

12-5 Measuring Stand-Alone Risk

12-6 Within-Firm and Beta Risk

12-7 Unequal Project Lives

Tying It All Together

Self-Test Questions and Problems?

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Appendix 12A: Tax Depreciation

Chapter 13: Real Options and Other Topics in Capital Budgeting

Putting Things in Perspective

13-1 Introduction to Real Options

13-2 Growth (Expansion) Options

13-3 Abandonment/Shutdown Options

13-4 Investment Timing Options

13-5 Flexibility Options

13-6 The Optimal Capital Budget

13-7 The Post-Audit

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problems

Integrated Case

Part 5: Capital Structure and Dividend Policy

Chapter 14: Capital Structure and Leverage

Putting Things in Perspective

14-1 Book, Market, or “Target” Weights?

14-2 Business and Financial Risk

14-3 Determining the Optimal Capital Structure

14-4 Capital Structure Theory

14-5 Checklist for Capital Structure Decisions

14-6 Variations in Capital Structures

Putting Things in Perspective

Tying It All Together

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Chapter 15: Distributions to Shareholders: Dividends and Share Repurchases

Putting Things in Perspective

15-1 Dividends versus Capital Gains: What Do Investors Prefer?

15-2 Other Dividend Policy Issues

15-3 Establishing the Dividend Policy in Practice

15-4 Dividend Reinvestment Plans

15-5 Summary of Factors Influencing Dividend Policy

15-6 Stock Dividends and Stock Splits

15-7 Stock Repurchases

Tying It All Together

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Taking a Closer Look

Part 6: Working Capital Management and Financial Forecasting

Chapter 16: Working Capital Management

Putting Things in Perspective

16-1 Background on Working Capital

16-2 Current Assets Investment Policies

16-3 Current Assets Financing Policies

16-4 The Cash Conversion Cycle

16-5 The Cash Budget

16-6 Cash and Marketable Securities

16-7 Inventories

16-8 Accounts Receivable

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