Includes index.

Contents: Financial management and value creation: an overview -- Understanding balance sheets and income statements -- Appendix 2.1: Specimen financial statements -- Financial diagnosis and management: Assessing liquidity efficiency -- Appendix 3.1: Financing strategies -- Appendix 3.2: Polo Ralph Lauren's liquidity and operational efficiency -- Measuring cash flows -- Appendix 4.1: Obtaining the net operating cash flow from balance sheet and income statement accounts -- Appendix 4.2: Polo Ralph Lauren's cash flows -- Diagnosing profitability, risk and growth -- Appendix 5.1: Factors affecting a firms operating profitability -- Appendix 5.2: The Relationship between a firm's role aftertax roic -- Appendix 5.3 Polo Ralph Lauren's profitability -- Investment decision : Using the net present value rule to make value-creating investment decisions -- Appendix 6.1: Calculation of the present value of an annuity and the constant annual-equivalent cash flow of a project's cash-flow stream -- Alternatives to the net present value rule -- Identifying and estimating a project's cash flows -- Financing decisions: Raising capital and valuing securities -- Appendix 9.1: The Bond valuation formula -- Appendix 9.2: The Valuation formula for the constant growth dividend model -- Estimating the cost of capital -- Designing a capital structure -- Business decisions: Valuing and acquiring a business -- Appendix 12.1: The Dividend discount model approach to the valuation of a firm's equity -- Making value-creating decisions in an international environment -- Appendix 13.1: Translating financial statements with the monetary / nonmonetary method and the current method -- The Parity relations -- Managing for value creation -- Appendix 14.1: Adjusting book values to estimate the amount of invested equity capital and operating profit -- Estimating market value added (MVA) when future cash flows are expected to grow at a constant rate in perpetuity -- Glossary -- Answers to review problems.