Finance

Introduction to Finance is a college-level, introductory textbook that covers the complex and fascinating subject of Finance. Boundless works with subject matter experts to select the best open educational resources available on the web, review the content for quality, and create introductory, college-level textbooks designed to meet the study needs of university students.


This textbook covers:

 

Introduction to the Field and Goals of Financial Management -- Introducing Finance, Goals of Financial Management, Trends and Issues in Finance, Ethics, an Overview, Business Organization Types, Corporate Governance, Agency and Conflicts of Interest, Asset Classes, Financial Markets

 

Financial Statements, Taxes, and Cash Flow -- Introducing Financial Statements, The Income Statement, The Balance Sheet, Tax Considerations, The Statement of Cash Flows, Other Statements

 

Analyzing Financial Statements -- Standardizing Financial Statements, Ratio Analysis Overview, Profitability Ratios, Asset Management Ratios. Liquidity Ratios, Debt Management Ratios, Market Value Ratios, The DuPont Equation, ROE, ROA, and Growth, Using Financial Ratios for Analysis, Considering Inflation's Distortionary Effects, Other Distortions

 

Forecasting Financial Statements -- Role of Financial Forecasting in Planning, Overview of Forecasting, Forecasting the Income Statement, Forecasting the Balance Sheet, Building a Cash Budget, Analyzing the Forecasts

 

The Time Value of Money -- Introduction to the Time Value of Money, Future Value, Single Amount, Present Value, Single Amount, Annuities, Valuing Multiple Cash Flows, Additional Detail on Present and Future Values, Yield

 

Bond Valuation -- The Basics of Interest Rates,Additional Topics in Interest Rates, Key Characteristics of Bonds, Understanding Bonds,Advantages and Disadvantages of Bonds,Types of Bonds, Bond Markets, Valuing Bonds, Bond Risk

 

Stock Valuation -- What is Stock, Types of Stock, Rules and Rights of Common and Preferred Stock, Stock Markets, Stock Valuation, Valuing the Corporation

 

Introduction to Risk and Return -- Understanding Return, Portfolio Considerations, Impact of News of Expected Returns, Risk, Implications Across Portfolios, Diversification, Understanding the Security Market Line

 

Security Market Efficiency and Returns -- The Security Markets, Understanding Returns, Market Efficiency, Market Regulation

 

Introduction to the Cost of Capital -- The Concept of the Cost of Capital, Valuing Different Costs, Calculation Approaches, The WACC

 

Capital Budgeting -- Introduction to Capital Budgeting, Payback Method, Internal Rate of Return, Net Present Value, Cash Flow Analysis and Other Factors

 

The Role of Risk in Capital Budgeting -- 

Relationship Between Risk and Capital Budgeting, Assessing Stand-Alone Risk,  Risk and Return, Scenario and Simulation Assessments, Factors Impacting Capital Budgeting, Other Considerations in Capital Budgeting

 

Capital Structure -- Capital Structure Considerations, Understanding the Bankruptcy Process, Introducing Capital Structure, Thinking About Operating Leverage, Thinking About Financial Leverage

 

Obtaining Capital: Methods of Long-Term Financing -- Types of Financing, Venture Capital Detail, Leasing, Role of Investment Banks in Financing, Distributing Stock, Comparing Public and Private Financing

 

Dividends -- What are Dividends, Dividend Policy, Setting the Dividend, Cash Dividend Alternatives

 

Options and Corporate Finance -- Convertible Securities, Options, Warrants, Derivatives, Managing Risk with Derivatives

 

Introduction to Working Capital -- Working C