The role of finance and the financial manager -- The operating environment of the firm -- Financial statements, depreciation, and the cash flow -- The analysis of financial statements -- The time value of money -- Risk and return -- Valuation -- Capitol budgeting and cash flow principles -- Capitol budgeting techniques: certainty, risk, and some refinements -- The cost of capital -- Leverage and capital structure -- Long-term debt and investment banking -- Common stock and dividend policy -- Preferred stock, leasing, convertibles, warrants, and options -- Financial planning -- Net working capital and short-tern financing -- Cash and marketable securities -- Accounts receivable and inventory -- Mergers, LBOs, divestitures, and failure -- International managerial finance -- Appendixes: A. Financial tables -- B. Instructions for using the PMF disk -- C. Using computers and spreadsheets in managerial finance -- D. Key equations and disk routines -- E. Solutions to self-test problems -- F. Answers to selected end-of-chapter problems.