Solutions Manual with Test

Solutions Manual with Test Bank For Principles of Managerial Finance, 15e Scott Smart Chad Zutter (All Chapters, 100% Original Verified, A+ Grade) All Chapters Solutions Manual Supplement files download link at the end of this file.Part 1: Solutions Manual: Pages 1-428 Part 2: Test Bank: Pages 429

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1 2 19 29 31 55 79 109 111 133 149 151 185 207 209 231 259 283 285 315 333 335 353 371 373 393 Contents PART 1 Intro duction to Managerial Finance

• The Role of Managerial Finance
• The Fin

ancial Market Environment PART 2 Fin ancial Tools

• Financial Statements and Ratio Analysis
• Long-

and Short-Term Finan cial Planning

• Time Valu

e of Money PART 3 Valuation of Securities 6 Interest Rates and Bond Valuation

• Stock Valuation

PART 4 Risk an d the Required Rate of Return 8 Risk and Return

• The Cost

of Capital PART

• Long-Term Investment Decisions

10 Capital Budgeting Techniques 1

• Capital Budgeting Cash Flows

12 Risk Refinements in Capital Budgeting PART 6 Long-Term Financial Decisions 13 Leverag e and Capital Structure 14 Payout Policy PART 7 Short-Term Financial Decisions 15 Work ing Capital and Current Assets Management 16 Current Liabilities Management PART 8 Special Topics in Managerial Finance 17 Hybrid and Derivative Securities 1

• Mergers, LBOs, Divestitures, and Business Failure

1

• International Managerial Finance

411

Part 1: Solutions Manual 2 / 4

© 2019 Pearson Education, Inc.Part 1 Introduction to Managerial Finance Chapters in This Part Chapter 1 The Role of Managerial Finance Chapter 2 The Financial Market Environment

Integrative Case 1: Merit Enterprise Corp.

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Chapter 1 The Role of Managerial Finance 2 © 2019 Pearson Education, Inc.Chapter 1 The Role of Managerial Finance

„ Instructor’s Resources Chapter Overview This chapter introduces the field of finance through building-block terms and concepts. The discussion starts by defining “firm” and stressing its principal goal—maximizing shareholder wealth. The importance of focusing on shareholders rather than stakeholders broadly and stock price rather than current profits is explained. The managerial-finance function is then described and differentiated from economics and accounting, with special attention to the role ethics play in a financial manager’s efforts to maximize the firm’s stock price. Next, the three basic legal forms of business organization (sole proprietorship, partnership, and corporation) are discussed and the strengths and weaknesses of each form noted. The chapter concludes with an exploration of the agency problem—the conflict arising when the managers and owners of the firm are not the same people—and the private- and public-sector tools available to focus managerial attention on shareholder wealth.This chapter and the ones to follow stress the important role finance vocabulary, concepts, and tools will play in the professional and personal lives of students—even those choosing other majors, such as accounting, economics information systems, management, marketing, or operations. Whenever possible, personal-finance applications are provided to motivate and illustrate topics. This pedagogical approach should inspire students to master chapter content quickly and easily.NOTE: After this text went to press, Congress passed the Tax Cuts and Job Act of 2017, which dramatically changed both corporate and personal tax rates. The first printing of this text did not reflect these tax changes, but subsequent print runs do. For tax-related problems, we provide solutions under both the old and the new tax law. Of particular relevance to this chapter, the corporate tax rate is now a flat 21%. Individuals still face a progressive rate schedule, so there is still value in explaining the progressive nature of the old corporate structure as well as the difference between marginal and average tax rates (which are essentially the same under a flat-rate structure). The change in the corporate tax code—in particular the introduction of a lower, flatter rate—can serve as a useful discussion point throughout this text. For example, instructors may wish to discuss the impact of a lower tax rate on the NPV of investments or a firm’s optimal capital structure.„ Suggested Answer to Opener-in-Review Students learned the stock price of Brookdale Senior Living tumbled 36% in 2016 to $12.35 per share, prompting Land and Buildings (a prominent stockholder) to urge the firm sell its real-estate holdings, distribute the anticipated net sales proceeds ($21 cash) to shareholders, and then focus on managing its senior living facilities. Students were asked whether the proposal would make Brookdale’s shareholders better off if the expected cash proceeds were realized, but stock price dipped to $5 per share.

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