(eBook PDF) Financial Management for Decision
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decision-makers-9th-edition/
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,FINANCIAL
MANAGEMENT
FOR DECISION MAKERS
NINTH EDITION
Peter Atrill
, Investment appraisal and strategic planning 180
The investment appraisal process 181
Investment decisions and human behaviour 187
Summary 188
Key terms 189
References 190
Further reading 190
Critical review questions 190
Exercises 191
5 Making capital investment decisions: further issues 199
Introduction 199
Learning outcomes 199
Investment decisions when funds are limited 200
Comparing projects with unequal lives 205
The ability to delay 208
The problem of inflation 208
The problem of risk 210
Sensitivity analysis 211
Scenario analysis 219
Risk preferences of investors 220
Risk-adjusted discount rate 223
Expected net present value (ENPV) 225
Event tree diagrams 228
Risk and the standard deviation 232
The standard deviation and the normal distribution 236
The expected value–standard deviation rule 237
Simulations 237
Measuring probabilities 240
Portfolio effects and risk reduction 241
Summary 249
Key terms 251
Further reading 251
Critical review questions 252
Exercises 252
6 Financing a business 1: sources of finance 257
Introduction 257
Learning outcomes 257
Sources of finance 258
External sources of finance 258
External sources of long-term finance 259
Attitudes towards the level of borrowing 272
External sources of short-term finance 282
Long-term versus short-term borrowing 287
Internal sources of finance 288
Internal sources of long-term finance 289
CONTENTS vii
, Internal sources of short-term finance 290
Summary 296
Key terms 297
Further reading 298
Critical review questions 298
Exercises 299
7 Financing a business 2: raising long-term finance 305
Introduction 305
Learning outcomes 305
The Stock Exchange 306
Stock market efficiency 311
Are the stock markets really efficient? 316
Share issues 322
Long-term finance for the smaller business 330
Business angels 337
Government assistance 339
The Alternative Investment Market (AIM) 340
Summary 346
Key terms 347
References 347
Further reading 348
Critical review questions 348
Exercises 348
8 The cost of capital and the capital structure decision 353
Introduction 353
Learning outcomes 353
Cost of capital 354
Weighted average cost of capital (WACC) 371
Specific or average cost of capital? 375
Limitations of the WACC approach 376
Cost of capital – some evidence 377
The capital structure debate 378
Gearing and signalling 388
Summary 390
Key terms 391
References 392
Further reading 392
Critical review questions 392
Exercises 393
9 Making distributions to shareholders 399
Introduction 399
Learning outcomes 399
viii CONTENTS
Makers 9th edition install download
https://ebookluna.com/product/ebook-pdf-financial-management-for-
decision-makers-9th-edition/
Download more ebook instantly today - Get yours now at ebookluna.com
,FINANCIAL
MANAGEMENT
FOR DECISION MAKERS
NINTH EDITION
Peter Atrill
, Investment appraisal and strategic planning 180
The investment appraisal process 181
Investment decisions and human behaviour 187
Summary 188
Key terms 189
References 190
Further reading 190
Critical review questions 190
Exercises 191
5 Making capital investment decisions: further issues 199
Introduction 199
Learning outcomes 199
Investment decisions when funds are limited 200
Comparing projects with unequal lives 205
The ability to delay 208
The problem of inflation 208
The problem of risk 210
Sensitivity analysis 211
Scenario analysis 219
Risk preferences of investors 220
Risk-adjusted discount rate 223
Expected net present value (ENPV) 225
Event tree diagrams 228
Risk and the standard deviation 232
The standard deviation and the normal distribution 236
The expected value–standard deviation rule 237
Simulations 237
Measuring probabilities 240
Portfolio effects and risk reduction 241
Summary 249
Key terms 251
Further reading 251
Critical review questions 252
Exercises 252
6 Financing a business 1: sources of finance 257
Introduction 257
Learning outcomes 257
Sources of finance 258
External sources of finance 258
External sources of long-term finance 259
Attitudes towards the level of borrowing 272
External sources of short-term finance 282
Long-term versus short-term borrowing 287
Internal sources of finance 288
Internal sources of long-term finance 289
CONTENTS vii
, Internal sources of short-term finance 290
Summary 296
Key terms 297
Further reading 298
Critical review questions 298
Exercises 299
7 Financing a business 2: raising long-term finance 305
Introduction 305
Learning outcomes 305
The Stock Exchange 306
Stock market efficiency 311
Are the stock markets really efficient? 316
Share issues 322
Long-term finance for the smaller business 330
Business angels 337
Government assistance 339
The Alternative Investment Market (AIM) 340
Summary 346
Key terms 347
References 347
Further reading 348
Critical review questions 348
Exercises 348
8 The cost of capital and the capital structure decision 353
Introduction 353
Learning outcomes 353
Cost of capital 354
Weighted average cost of capital (WACC) 371
Specific or average cost of capital? 375
Limitations of the WACC approach 376
Cost of capital – some evidence 377
The capital structure debate 378
Gearing and signalling 388
Summary 390
Key terms 391
References 392
Further reading 392
Critical review questions 392
Exercises 393
9 Making distributions to shareholders 399
Introduction 399
Learning outcomes 399
viii CONTENTS
