Financial Management Essentials You Always Wanted To Know: 4th Edition

Description

Financial Management Essentials You Always Wanted To Know: 4th Edition provides new managers and leaders with the foundational concepts of financial management. Having deep knowledge of law, engineering, and other professional disciplines doesn’t prepare someone for the key role finance plays in business. This book provides an overview of core financial concepts such as:

• Analysis of financial statements
• Cost of Capital
• Creating a capital budget
• Managing working capital
• Stocks and dividends
• Forecasting

Each chapter provides clear examples of financial management practice and includes practice exercises to help train the reader in the usage of these critical tools. This edition also includes Chapter Summaries and Solutions to Practice Exercises.

About the Series

Financial Management Essentials You Always Wanted To Know: 4th Edition is part of the Self-Learning Management Series that helps working professionals moving into management roles. This Self Learning Management Series intends to give a jump start to working professionals, whose job roles demand to have the knowledge imparted in a B-school but haven’t got a chance to visit one. This series is designed to address every aspect of business from HR to Finance to Marketing to Operations, be it any industry. Each book includes basic fundamentals, important concepts, standard and well-known principles as well as practical ways of application of the subject matter. The distinctiveness of the series lies in that all the relevant information is bundled in a compact form that is very easy to interpret.

About the Author

Kalpesh Ashar is a management consultant and corporate trainer holding an MBA (Dean’s Award Winner) from SPJIMR, one of Asia’s top business schools, and an Engineering degree with honours in Electronics. He has over 21 years of experience in large organizations and start-ups in Asia, USA, and Europe.

Kalpesh has worked in several project management roles, like Senior Project Manager, Delivery Manager, and Program Manager. He is passionate about writing on management subjects. His techno-business background gives him a unique position to write on management topics that are easy to understand for non-MBA graduates. His books are authored in a simple to understand manner without unnecessary use of management jargons.

About Vibrant Publishers

Vibrant Publishers is focused on presenting the best texts for learning about technology and business as well as books for test preparation. Categories include programming, operating systems and other texts focused on IT. In addition, a series of books helps professionals in their own disciplines learn the business skills needed in their professional growth.

Vibrant Publishers has a standardized test preparation series covering the GMAT, GRE and SAT, providing ample study and practice material in a simple and well organized format, helping students get closer to their dream universities.

Table of Contents
1. Introduction to Financial Management
2. Financial Statement Analysis
Ratio Analysis
DuPont Framework
Benchmarking
Limitation of Financial Ratios
Common-size Financial Statements
Solved Examples
Practice Exercise
Chapter Summary
3. Cost of Capital
Cost of Debt (ka)
Cost of Preferred Stock (kp)
Cost of Retained Earnings (ks)
Cost of New Common Stock (ke)
Weighted Average Cost of Capital (WACC)
Solved Examples
Practice Exercise
Chapter Summary
4. Capital Budgeting
Free Cash Flow
Timing of Cash Flow
Estimating Cash Flows over Life of Project
Payback Period
Discounted Payback Period
Net Present Value (NPV)
Internal Rate of Return (IRR)
Modified Internal Rate of Return (MIRR)
Usage of Capital Budgeting Methods
Solved Examples
Practice Exercise
Chapter Summary
5. Working Capital Management
Cash Conversion Cycle
Current Asset Investment Policies
Current Asset Financing Approaches
Short-Term Financing Options
Solved Examples
Practice Exercise
Chapter Summary
6. Capital Structure
Debt
Optimal Capital Structure
Capital Structure Theories
Solved Examples
Practice Exercise
Chapter Summary
7. Distribution to Shareholders
Factors in setting Dividend Distribution Policy
Residual Dividend Model
Dividend Payment Procedures
Dividend Reinvestment Plan (DRIP)
Stock Splits and Stock Dividends
Stock Repurchases
Solved Examples
Practice Exercise
Chapter Summary
8. Forecasting Financial Statements
Step 1 – Forecast Sales
Step 2 – Forecast Income Statement
Step 3 – Forecast Balance Sheet – 1st Pass
Step 4 – Raising Additional Funds Needed (AFN)
Step 5 – Forecast Balance Sheet – 2nd Pass
AFN Formula
Solved Examples
Practice Exercise
Chapter Summary
Glossary