Financial Management Essentials You Always Wanted to Know: 5th Edition

1. Introduction to Financial Management

2. Financial Statement Analysis

2.1 Ratio Analysis

2.2 DuPont Framework

2.3 Benchmarking

2.4 Limitation of Financial Ratios

2.5 Common-size Financial Statements

Case Study

Solved Examples

Practice Exercise

Chapter Summary

3. Cost of Capital

3.1 Cost of Debt (kd)

3.2 Cost of Preferred Stock (kp)

3.3 Cost of Retained Earnings (ks)

3.4 Cost of New Common Stock (ke)

3.5 Weighted Average Cost of Capital (WACC)

Solved Examples

Practice Exercise

Chapter Summary

4. Capital Budgeting

4.1 Free Cash Flow

4.2 Timing of Cash Flows

4.3 Estimating Cash Flows over Life of Project

4.4 Payback Period

4.5 Discounted Payback Period

4.6 Net Present Value (NPV)

4.7 Internal Rate of Return (IRR)

4.8 Modified Internal Rate of Return (MIRR)

4.9 Usage of Capital Budgeting Methods

Case Study

Solved Examples

Practice Exercise

Chapter Summary

5. Working Capital Management

5.1 Cash Conversion Cycle

5.2 Current Asset Investment Policies

5.3 Current Asset Financing Approaches

5.4 Short-Term Financing Options

Case Study

Solved Examples

Practice Exercise

Chapter Summary

6. Capital Structure

6.1 Debt

6.2 Optimal Capital Structure

6.3 Capital Structure Theories

Solved Examples

Practice Exercise

Chapter Summary

7. Distribution to Shareholders

7.1 Factors in setting Dividend Distribution Policy

7.2 Residual Dividend Model

7.3 Dividend Payment Procedures

7.4 Dividend Reinvestment Plan (DRIP)

7.5 Stock Splits and Stock Dividends

7.6 Stock Repurchases

Solved Examples

Practice Exercise

Chapter Summary

8. Forecasting Financial Statements

8.1 Step 1 – Forecast Sales

8.2 Step 2 – Forecast Income Statement

8.3 Step 3 – Forecast Balance Sheet – 1st Pass

8.4 Step 4 – Raising Additional Funds Needed (AFN)

8.5 Step 5 – Forecast Balance Sheet – 2nd Pass

8.6 AFN Formula

Case Study

Solved Examples

Practice Exercises

Chapter Summary

9. International Finance

9.1 Exchange rates

9.2 Purchasing Power Parity and Interest Rate Parity

Solved Examples

Practice Exercise

Chapter Summary

Glossary

Kalpesh Ashar is a management consultant and corporate trainer holding an MBA (Dean’s Award Winner) from SPJIMR, one of Asia’s top business schools, and an Engineering degree with honors in Electronics. He has over 24 years of experience in large organizations and start-ups in Asia, USA, and Europe. Kalpesh has worked in several project management roles, like Senior Project Manager, Delivery Manager, and Program Manager. He is passionate about writing on management subjects. His techno-business background gives him a unique position to write on management topics that are easy to understand for non-MBA graduates. His books are authored in a simple to understand manner without unnecessary use of management jargons.

Vibrant Publishers is focused on presenting the best texts for learning about technology and business as well as books for test preparation. Categories include programming, operating systems and other texts focused on IT. In addition, a series of books helps professionals in their own disciplines learn the business skills needed in their professional growth.

Vibrant Publishers has a standardized test preparation series covering the GMAT, GRE and SAT, providing ample study and practice material in a simple and well organized format, helping students get closer to their dream universities.

The Self-Learning Management Series is designed to help students, new managers, career switchers, and entrepreneurs learn essential management lessons and covers every aspect of business, from HR to Finance to Marketing to Operations across any and every industry. Each book includes basic fundamentals, important concepts, and standard and well-known principles as well as practical ways of application of the subject matter.

Very comprehensive and informative. The book covers all of the topics that I normally teach my undergraduate students. In my opinion, this would be a useful tool for a classroom setting. Additionally, the book will assist someone who is considering starting an investment/relations company, or a creative business owner to dig deeper into the world of financial management.
-- Xihui Chen, Assistant Professor of Accounting and Finance, Heriot-Watt University

This book fills an important void for managers responsible for corporations and non-profits. It begins by opening access to finance to people with no experience in finance and moves steadily on to present well-developed business tools for decision making in complex organizations with significant revenues and budgets. I highly recommend this book.
-- Drew Hession-Kunz, Senior Lecturer, Finance Department, Boston College

I think the book would be a good primer or assigned text for those enrolled in a college or AP Finance course, as it introduces financial concepts in basic terms. The illustrations and flow charts are a plus, as they will help students navigate the book and visualize applications of the lessons therein.
-- Carl Lew, School Librarian, The Park School

In your self-learning series, I am using Business Strategy and Financial Management as supplemental textbooks next semester.
-- Jared Reynolds, Associate Dean, Kelley College of Business

The book is well structured and covers the core financial concepts that are essential for any business student to know. The concepts are explained in an easy-to-understand manner, and the examples and content is translated well into end-of-chapter practice problems. I would definitely recommend this book to both finance and non-finance majors.
-- Prateek Sharma, Ph.D. Assistant Professor of Finance at Labovitz School of Business and Economics

As an accountant, I always find it interesting to read books that are geared toward non-accountants. I highly recommend this book to non-accountants in the business world. It will save you time and keep your accountants happy, because you can explain what you need them to do. It is very easy to find what you are looking for without having to read every page of the book. You can just go to the specific topic and learn what you need to know. This is definitely a must-have book for all upper-management personnel.
-- Julia Gibson
Reviewer
Net Galley

Financial Management Essentials is a concise book, exactly what is needed for a short introductory level course or for someone who would like a short course that covers all the essentials. The book has many examples and includes solutions to several probems as well. It is an excellent book to start learning finance in an 'applied' way.
-- Javier Mella, PhD, CFA
Assistant Professor of Finance
Universidad de los Andes

In Essentials of Financial management, Author Kalpesh Ashar, simplifies some of the most complex issues in Financial Management in a down-to-earth manner. In nine chapters from
“Financial Analysis Ratios to International Finance”, every aspect of financial
management is expounded upon in a concise and well-illustrated manner and backed up with
exercises. Readers of this book will be able to decipher the various elements of financial
management that leads to the decision-making process.
-- Dr. Felix Lessambo
Adjunct Associate Professor
Fordham University

It is really helpful to the student community. Most of the content and concepts were explained in more detail and easy to understand to the students. And the kind of examples taken are more recent, real time and relevant to title or topic. The units like Capital Budgeting and Cost of Capital carried detailed explanations. The students are able to understand and calculate more complex problems in the easiest way.
-- Dr. Siva Reddy Podapala, Associate Professor of Finance

It is a well-structured book that covers the fundamental financial concepts that all business students should be familiar with.In the end-of-chapter practice problems, examples and content are well translated into an easily understandable manner. A lot of care has been taken to illustrate and chart the information. It would be my pleasure to recommend this book to you.
-- Dr. Vidhya K.,
Lead counsel at LEAD College of Management

'Vibrant Publishers' Accounting and Finance books are invaluable resources for students and faculty alike. They empower students to deepen their knowledge and understanding, providing a clear path to academic success.'
-- Hem Chandra Bhatt
Assistant Professor,
P. N. G. Govt. P. G. College Ramnagar

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