Introduction to Corporate Finance

xviii

15-4e What Type of Information is Being Communicated? 553

15-4f Dividend Payments as Solutions to Agency Problems 554

15-5 Payout Policy: Key Lessons 555

Summary 555 | Key terms 556 | Self-test problems 556 | Questions 557 | Problems 558

■ MINI CASE Dividend Policy 563

■ Online Study Tools 563

Smart Video

Scott Lee, Texas A&M University | p.

Andy Bryant, Executive Vice President of

Finance and Enterprise Systems, Chief

Financial Officer, Intel Corp. | p.

John Graham, Duke University | p.

Cynthia Lucchese, Chief Financial Officer,

Hillenbrand Industries | p.

Frank Popoff, Chairman of the Board

(retired), Dow Chemical | p.

Kenneth Eades, University of

Virginia | p.

SMART concepts | p.

Real-world case study: Restructuring finances to end litigation 564

PART V

SPECIAL TOPICS 567

CHAPTER 16 FINANCIAL PLANNING 568

■ WHAT COMPANIES DO: David Jones Takes Steps to Unlock Long-Term

Value and Growth Potential 568

16-1 Overview of the Planning Process 570

■ FINANCE IN PRACTICE: How Companies Adjust Financial Plans

When a Global Recession Hits 570

16-1a Successful Long-Term Planning 571

16-1b The Role of Finance in Long-Term Planning 571

16-2 Planning for Growth 572

16-2a Sustainable Growth 572

16-2b Pro Forma Financial Statements 577

16-3 Planning and Control 582

16-3a Short-Term Financing Strategies 582

16-3b The Cash Budget 585

■ FINANCE IN PRACTICE: Can I Make Ends Meet? 590

Summary 591 | Important equations 592 | Key terms 592 | Self-test problems 592 |

Questions 594 | Problems 595

■ MINI CASE Financial Planning 600

■ Online Study Tools 600

Smart Video

Jackie Sturm, Vice President of Finance, Intel

Corp. | p.

John Eck, President of Broadcast and

Network Operations, NBC | p.

Daniel Carter, Vice President of Finance,

BevMo! | p.

Beth Acton, Vice President and Treasurer

of Ford Motor Co. (former) | p.

SMART concepts | p.

SMART solutions | p.

SMART solutions | p.

Contents