SOLUTIONS MANUAL.doc

SOLUTIONS MANUAL FINANCIAL MANAGEMENT PRINCIPLES AND APPLICATIONS VOLUME II

2012 Edition

MA. ELENITA BALATBAT CABRERA BBA, MBA, CPA, CMA

Table of Contents Unit VII Chapter

Unit VIII Chapter

Unit IX Chapter

Unit X Chapter

Assets Risks Concept and Pricing 21

FINANCIAL RISK MANAGEMENT

21-1 – 21-5

22

ESTIMATING RISK AND RETURN ON ASSETS

22-1 – 22-12

23

CAPITAL ASSET PRICING MODEL AND MODERN PORTFOLIO THEORY

23-1 – 23-11

Capital Structure Issues 24

ASSESSING LONG-TERM DEBT, EQUITY AND CAPITAL STRUCTURE

24-1 – 24-9

25

SOURCES OF LONG-TERM FINANCING

25-1 – 25-10

26

SHARING FIRM WEALTH: DIVIDENDS, SHARE REPURCHASES AND OTHER PAYOUTS

26-1 – 26-20

Long-term Investment Decisions 27

CALCULATING THE COST OF CAPITAL

27-1 – 27-4

28

BASICS OF CAPITAL BUDGETING

28-1 – 28-6

29

SCREENING AND SELECTING CAPITAL INVESTMENT PROPOSALS

29-1 – 29-10

Other Contemporary Issues in Finance 30

MERGERS AND ACQUISITIONS; DIVESTITURES

301-1 – 30-3

31

INTERNATIONAL ASPECTS OF CORPORATE FINANCE

31-1 – 31-7