Financial+Analysis+for+Managers

toc =Midterm Study Materials=

Chapter 2 - Time Value of Money
[|FM12e-SG-Ch2TVOM.pdf]

Chapter 5 - Bonds
[|FM12e-SG-Ch5Bonds.pdf]

**Chapter 6 - Capital Asset Pricing Model**
[|FM12e-SG-Ch6CAPM.pdf]

Chapter 7 - Portfolio Theory
[|FM12e-SG-Ch7Portfolio.pdf]

Chapter 8 - Stock Valuation
[|FM12e-SG-Ch8Stocks.pdf]

=Modifying Accounting Data for Managerial Decisions=

Operating CAs = Cash + AR + Inventories

Operating CLs = Accounts Payable + Accruals

NOWC = Operating CAs – Operating CLs

Operating Capital = NOWC + Net Fixed Assets

NOPAT = EBIT (1-T)

Free Cash Flow = Operating Cash Flow – Gross Investment in OC = NOPAT + Depreciation – [Net Investment in OC + Depreciation]

= NOPAT – Net Investment in OC = EBIT (1-T) – Operating Capitalt – Operating Capitalt-1

ROIC = NOPAT/Operating Capital

EVA = NOPAT – WACC*Operating Capital

MVA =MV of Firm – BV of Firm = = =Articles=

Associated Press. “Apple Earnings: A Big Beat as iPad, iPhone Sales Soar.” //Wall Street Journal//, July 19, 2011.

———. “Apples Shares Soar Past $400 After Strong Earnings Report.” //Wall Street Journal//, July 19, 2011.

Conway, Brendan, and Chris Dieterich. “Heavy Bets on Clorox Options Before Icahn Bid.” //Wall Street Journal//, July 15, 2011. http://online.wsj.com/‌article/‌SB10001424052702304223804576448452300327230.html.

Das, Anupreeta, and Geoffrey A. Fowler. “Groupon to Gauge Limits of IPO Mania.” //Wall Street Journal//, June 3, 2011.

Efrati, Amir, and Kellie Geressy-Nilsen. “Cash-Rich Google Sells First Bonds.” //Wall Street Journal Online//, May 17, 2011. Factiva (WSJO000020110516e75h00b49).

Holmes, Elizabeth, and Joann S. Lublin. “Penney Picks Boss From Apple --- Tech Giant’s Retail Chief Tapped to Remake Venerable Chain.” //Wall Street Journal//, June 15, 2011.

Levisohn, Ben. “History’s Debt Lesson --- The ‘Safe-Haven’ Investment Isn’t Always So Safe.” //Wall Street Journal//, September 20, 2010.

//MarketBeat// (blog). http://blogs.wsj.com/‌marketbeat/‌.

Murphy, Maxwell. “How Ackman’s Pershing Square Stalked J.C. Penney.” //Dow Jones Business News//, October 8, 2010. Factiva (DJON000020101008e6a80006m).

Whitehouse, Mark. “WSJ: Fed’s Low Interest Rates Crack Retirees’ Nest Eggs.” //Wall Street Journal//, April 3, 2011.

Zeng, Min. “Data Set Off Fresh Push Into Bonds --- Worries About Recovery Again Push Yields Lower; Waiting on the Jobs Report.” //Wall Street Journal//, June 1, 2011.

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