Chad J. Zutter is a finance professor and the Dean’s Excellence Faculty Fellow at the Katz Graduate School of Business at the University of Pittsburgh. His research has a practical, applied focus and has been the subject of feature stories in, among other prominent outlets, The Economist and CFO Magazine. His papers have been cited in arguments before the US Supreme Court and in consultation with companies such as Google and Intel. 

Dr. Zutter won the Jensen Prize for the best paper published in the Journal of Financial Economics and also won a best paper award from the Journal of Corporate Finance. Dr. Zutter has won teaching awards at Indiana University and the University of Pittsburgh. He received his BBA from the University of Texas at Arlington and his PhD from Indiana University in Bloomington, Indiana. Prior to his career in academics, Dr. Zutter was a submariner in the US Navy. Professor Zutter and his wife have four children and live in Pittsburgh, PA. 

Scott B. Smart is a finance professor and the Whirlpool Finance Faculty Fellow at the Kelley School of Business at Indiana University. His research focuses primarily on applied corporate finance topics and has been published in journals such as the Journal of Finance, the Journal of Financial Economics, the Journal of Corporate Finance, Financial Management and others. His articles have been cited by business publications including The Wall Street Journal, The Economist, and Business Week. 

Dr. Smart has won several teaching, been listed multiple times as a top business school teacher by Business Week, and held Visiting Professor positions at the University of Otago and Stanford University. He has served as a mergers and acquisitions consultant to Intel, as Chairman of the Board of the Indiana University Credit Union, and on many other nonprofit boards such as Habitat for Humanity. In his spare time he enjoys outdoor pursuits such as hiking and fly fishing.

Contents ix

About the Authors xxv

Preface xxvii

Acknowledgments xl

PART I: INTRODUCTION TO MANAGERIAL FINANCE

1. The Role of Managerial Finance 

2. The Financial Market Environment 

PART II: FINANCIAL TOOLS 

3. Financial Statements and Ratio Analysis 

4. Long- and Short-Term Financial Planning 

5. Time Value of Money 

PART III: VALUATION OF SECURITIES 

6. Interest Rates and Bond Valuation 

7. Stock Valuation 

PART IV: RISK AND THE REQUIRED RATE OF RETURN 

8. Risk and Return 

9. The Cost of Capital 

PART V: LONG-TERM INVESTMENT DECISIONS 

10. Capital Budgeting Techniques 

11. Capital Budgeting Cash Flows and Risk Refinements 

PART VI: LONG-TERM FINANCIAL DECISIONS 

12. Leverage and Capital Structure 

13. Payout Policy 

PART VII: SHORT-TERM FINANCIAL DECISIONS 

14. Working Capital and Current Assets Management 

15. Current Liabilities Management 

Appendix A-1

Glossary G-1

Index I-1

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