Organization of the Book (2)
Posted on November 20, 2008 - Filed Under Finance
In Part IV (Basic Financial Analysis Concepts), the focus moves from accounting to financial management. Chapter 9 covers time value analysis, which provides techniques for valuing future cash flows, and Chapter 10 presents financial risk and required return—two of the most important concepts in financial decision making.
Part V (Long-Term Financing) turns to the capital acquisition process. Businesses need capital, or funds, to purchase assets, and in Chapters 11 and 12 the two primary types of financing—long-term debt and equity—are examined. These chapters not only provide descriptive information about securities and the markets in which they are traded but also discuss security valuation. Chapter 13 provides the framework for analyzing the appropriate mix of capital financing and assessing its cost to the business.
In Part VI (Capital Investment Decisions), the vital topic of how businesses analyze new capital investment opportunities (or capital budgeting) is considered. Because major capital projects take years to plan and execute, and because these decisions generally are not easily reversed and will affect operations for many years, their impact on the future of an organization is profound. Chapter 14 focuses on basic concepts, while Chapter 15 discusses risk assessment and incorporation.
Part VII contains three chapters. In Chapter 16, the management of short-term assets is reviewed, including cash, receivables, and inventories as well as how such assets are financed. The techniques used to analyze a business’s financial and operating condition are discussed in Chapter 17. Health services managers must be able to assess the current financial condition of their organizations. Even more important, managers must be able to monitor and control current operations and to assess ways in which alternative courses of action will affect the organization’s future financial condition. Finally, Chapter 18 covers two unrelated topics: lease financing and business valuation.
Taken From : HEALTHCARE FINANCE
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