Managerial finance : principles and practice / Steven E. Bolten

Includes bibliographical references and index.

Part One. Organizations and the financial officer -- Part two. Capital budgeting -- Part Three. The cost of capital -- Part Four. Working capital management -- Part Five. Short-Term sources of funds -- Part Six. Other topics in financial management.

MANAGERIAL FINANCE has been described as that blend of art and science through which firms make the important decisions of what to invest in, how to finance it, and how to combine the two in order to maximize some appropriate objective." "What to invest in" covers every item on the asset side of the balance sheet, from short-term cash to long-term capital projects lasting upwards of decades. In the aggregate, the resource allocation of the nation's private sector depends on these decisions, as does the operating integrity and success of the individual firm. "How to finance that investment" covers every item on the liability side of the balance sheet, from short-term accounts payable to long-term equity capital with an infinite life expectancy. Again, in the aggregate, the nation's financial system depends on these decisions, as does the financial integrity of the individual firm. "How to combine the investment and financing decisions in order to maximize some corporate objective" requires the individual's participation in many areas, from subjective soul-searching to defining a corporate identity and objective to communicating with stockholders, the public, and the governmental authorities; from daily supervision and control of the firm's operations to contemplation and implementation of large policy issues; and, finally, integrating the separate considerations and decisions into a unified whole.