The rights of James C. Van Horne and John M. Wachowicz, Jr. to be identified as authors of this
work has been asserted by them in accordance with the Copyright, Designs and Patents Act
1988.
ISBN: 978-0-273-71364-7
All rights reserved. is hereby given for the material in this publication to be reproduced for OHP
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, Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition, Instructor’s Manual
Contents
Chapters Pages
1. The Role of Financial Management 9
2. The Business, Tax, and Financial Environments 12
3. The Time Value of Money* 19
4. The Valuation of Long-term Securities* 32
5. Risk and Return* 41
6. Financial Statement Analysis* 49
7. Funds Analysis, Cash-flow Analysis, and Financial Planning* 61
8. Overview of Working-capital Management 82
9. Cash and Marketable Securities Management 88
10. Accounts Receivable and Inventory Management 93
11. Short-term Financing 105
12. Capital Budgeting and Estimating Cash Flows 112
13. Capital Budgeting Techniques 120
14. Risk and Managerial (Real) Options in Capital Budgeting 134
(some sections may be omitted in an abbreviated course)
15. Required Returns and the Cost of Capital 144
16. Operating and Financial Leverage (may be omitted in an abbreviated course) 157
17. Capital Structure Determination 174
18. Dividend Policy 184
19. The Capital Market 195
20. Long-term Debt, Preferred Stock, and Common Stock 201
21. Term Loans and Leases (may be omitted in an abbreviated course) 213
22. Convertibles, Exchangeables, and Warrants 225
23. Mergers and Other Forms of Corporate Restructuring 234
24. International Financial Management 251
*Note: Some instructors prefer to cover Chapters 6 and 7 before going into Chapters 3-5. These
chapters have been written so that this can be done without any problem.
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