Organize Your Financial Ratios Analysis with

PALMS

Elisa Rinastiti Muresan, PhD

(The author is an Assistant Professor of Finance at the School of Business,
Long Island University at 1 University Plaza, Brooklyn, New York, NY11201.
Tel. +1 – 718 – 488 1150, Fax. +1 – 718 – 488 1125,
Email: elisa.muresan@liu.edu)

Professor Philip Wolitzer, CPA

(The author is a Professor Emeritus of Accounting at the School of Business,
Long Island University at 1 University Plaza, Brooklyn, New York, NY11201.
Tel. +1 – 718 – 488 1152, Fax. +1 – 718 – 488 1125,
Email: PWolitzer@NYSSCPA.org)

1
 Organize Your Financial Ratios Analysis with P A L M S

Abstract:

Financial ratios are useful measures to provide a snapshot of a company’s

financial position. There are so many of them, making it difficult to decide and
memorize which one(s) would be the most appropriate to be used for getting the
overall financial picture about a company. Additionally, the interpretation of the
calculated ratios plays an important role in determining the quality of the financial
analysis of the company. This article presents a mnemonic formula, which is
intuitively appealing, original, and innovative; serving as an aid for identifying
the five most useful categories of financial ratios to obtain the overall picture of a
company’s financial position, the PALMS (Profitability, Asset utilization, Long-
term solvency, Market value, and Short-term solvency ratios). Not only is
PALMS easy to remember, it is also flexible to use and systematically intuitive to
interpret. PALMS help analysts to better organize their process of analyzing a
company’s financial position to arrive at a comprehensive and accurate
conclusion about the company.

2
Introduction:

Financial ratios are employed to assess a company’s financial position relative to its industry or

peer1. The gauge of a financial ratio is the company’s accounting information2, which can be

found in the company’s main financial statements such as Income Statement and Balance Sheet.

Accordingly, in order to use3 a financial ratio, one needs a relatively decent knowledge of basic

mathematical and accounting concepts. The importance of financial ratios analysis is

unquestionable. For example, in regulating companies to file for their 10-K, the U.S. Securities

Exchange and Commission requires them to show their ratio of earnings to fixed charges4. In

analyzing the probability of default of a credit issuer, Standard and Poor’s, Moody’s, and

FitchIBCA use several types of financial ratios of the rated companies5. Even the most

commonly-used financial databases such as Dun and Bradstreet6, Compustat7, Mergent Online8,

and Datastream9 provide financial ratios data to aid researchers conduct a company’s

fundamental analysis. Therefore it is not surprising that in (introductory) corporate finance

textbooks, there will always be a section (sometimes even a chapter) dedicated on the discussion

of using (calculating and interpreting) financial ratios to analyze the financial position of a

1
Comparison to the industry is usually considered sufficient using up to four digits SIC level; and comparison to the
peer usually depends on the amount of a firm's total assets, market capitalization, and stockholders’ equity.
2
The ‘main’ accounting report consists of Income Statement, Balance Sheet, Cash Flows Statement, and Statement
of Equity holders. If needed, more explanations on the company’s financial position may be obtained in the
Management Discussions and Analysis, and the Notes to Financial Statement.
3
The word ‘use’ here refers to the process of calculating and interpreting the financial ratios.
4
See the www.sec.gov/divisions/corpfin/forms/regsk.htm, Subpart 229.500, Item 503: Summary Information, Risk
Factors and Ratio of Earnings to Fixed Charges.
5
See “Corporate Ratings Criteria” of Standard and Poor’s at www.standardandpoors.com/ratings; also see “Guide to
Moody’s Ratings, Rating Process, and Rating Practices” at www.moodys.com/moodys/cust/ratingdefinitions; and
“Corporate Rating Methodology” of FitchRatings at www.fitchibca.com.
6
See https://www.dnb.com/product/contract/ratiosP.htm.
7
See http://www.compustat.com/www/.
8
See http://www.mergentonline.com.
9
See http://www.datastream.net.

3
company (see Table 1 for the list of commonly-used textbooks taught in introductory corporate

finance classes in the US, which discuss financial ratios analysis in their chapters).

Why are financial ratios so popular? Firstly, perhaps because they are intuitively easy to

calculate, simply define a set of accounting figures as the numerator and divide it with a set of

other accounting figures as the denominator10. Secondly, they are also relatively straightforward

to interpret because they refer directly to certain accounting figures11. Financial ratios, however,

have a few major drawbacks. Firstly, they depend on accounting figures, which can sometimes

be unreliable12. Secondly, there are so many types of them that make it uneasy to decide which

would be the most useful financial ratios to be employed. Thirdly there has been no method

designed so far, that will enable one to conduct a systematically and methodically comprehensive

analysis of the overall financial performance of a company. Nonetheless, each time a financial

analyst has to justify his/her analysis, he/she usually provides several figures of ratios, which

represent certain categories of a company’s financial position attempting to answer the five key

conditions of the company: (a) its profitability, (b) its ability to manage its assets effectively, (c)

its potential to stay alive and healthy as long as possible through efficacy management of its

sources of funding, (d) its competency to do better than its peer in the market, and (d) its

efficiency in managing its day-to-day activities.

10
The official definition of a Financial Ratio as defined by the U.S. Government Small Business Association can be
found at http://www.sba.gov/test/wbc/docs/finance/fs_ratio1.html.
11
The U.S. Securities and Exchange Commission defines ‘General Standard’ financial ratios as ratios or statistical
measures that are calculated using financial information that is reported in accordance with the GAAP (see the Final
Rule of the Conditions for Use of Non-GAAP Financial Measures by the U.S. SEC in 17 CFR Parts 228, 229, 244
and 249, at http://www.sec.gov/rules/final/33-8176.htm).
12
Lanez J.A. and Callao S. (2000) find important differences in the situation of companies (liquidity, solvency,
indebtedness and profitability) under different accounting principles. McLeay S. and Trigueiros D. (2002) show that
the multiplicative character of the financial variables from which financial ratios are constructed is a necessary
condition of valid ratio usage, not just an assumption supported by evidence. Kaminski K.A., Wetzel T.S., and Guan
L. (2004) find that misclassification of financial ratios for fraud firms ranged from 58 – 98%, indicating limited
ability of financial ratios to predict fraudulent accounting information.

4
The P A L M S:

This article proposes the mnemonic method of “PALMS for Financial Ratios” to assess a

company’s financial position comprehensively, giving no opportunities to overlook any

important financial indicators. This method simply and conveniently uses the interface of a

normal palm with its five fingers stretched out representing the five key categories of all

financial ratios. Exhibit 1 shows the graphical illustration of this method in which P stands for

Profitability, A is the Assets Utilization, L denotes the Long-term solvency, M refers to the

company’s Market value, and S represents the Short-term solvency of the company. This method

is also intuitively systematic compared to its aliases (see Exhibit 2) that have been used variably

in the mix-and-match manner.

More specifically, the intuitive process of analysis in PALMS follows the flow of recording the

influential financial transactions that a company does throughout one financial period (see

Exhibit 3). Exhibit 3 illustrates a top-down approach that an investor would intuitively follow in

order to systematically analyze a company starting from the end result of the company’s

activities: profit. Profit results from smart management of assets and activities throughout a

financial period. In order to acquire the assets that the company needs to produce profits, some

funding is needed. A well-thought management of these sources of funding is also essential to

support the company’s longevity in business. For example, if a company uses too much leverage

and takes up too much debts, it may end up having to pay the interest and principal of the debts

extensively, resulting in reduced profit from its business activities. This in turn will not satisfy its

owners, the share/equity/stock-holders, whose perceptions play a crucial role in the company’s

future expectation. On the other hand, debts are less costly than equities and easier to obtain.

5
Therefore, it is essential that a company makes the most appropriate decision to use debts or

equities as their source of funding. Lastly, but not less important, is the analysis of a company’s

ability to manage its short-term ordeals, managing its current assets and liabilities during a one-

period of financial activities.

The first letter in PALMS, P, signifies the first question of a company’s profit-making capability

(profitability). In this category, the three main financial ratios are the Profit Margin, Return on

Assets (ROA), and Return on Equity (ROE) Ratios (see Exhibit 4). Different types of profits

may be used as the numerators in the calculation process of the Profit Margin Ratio (Gross

Margin, Operating Income and Net Income), allowing different users to satisfy their need of

information. For example, a debtor may be more interested in assessing a company’s ‘operating’

rather than ‘net’ income. This is because debtors are entitled to their interest payments, which are

deducted from the company’s operating rather than net income. On the other hand, stockholders

are probably more interested in the company’s net rather than operating income because they are

only entitled to the company’s income after a deduction of all payment obligations.

The second letter in PALMS, A, refers to the direct sources that companies use/produce in order

to make profits: assets. Assets may be broken down into two main classifications, current and

fixed or other; whose determination of efficiencies may be gauged based on their ratios to the

company’s sales or total assets. Although not limited, especially for industrial companies, the

types of current assets that typically should be placed under scrutiny are Inventories and Account

Receivables. This is because if a company has too much inventory relative to its ability to sell, it

means the company may have taken on unnecessary storage, production, and selling costs

6
affecting its level of profit. Additionally, it may also reflect the company’s weakness in planning

its production level. The amount of account receivables turnover also reflects the company’s

policy in asset management. This is because if the company is unable to obtain cash from its

credit sales relatively quickly, it may end up having to run its business without obtaining any

cash flows to support its current and near-future production.

The L letter in PALMS addresses the sources of funding that a company obtains to buy assets,

which produce its goods and services. Because these types of assets are used for more than one

year period, they should be funded by long-term obligations. The use of short-term financing can

result in a company having to file for a bankruptcy because the long-term assets would not have

produced sufficient income to pay off the short-term obligations. Therefore, the main inputs in

this category of ratio are long-term liabilities and equities. A ‘good’ balance of debts and equities

is required from a company because debts involve paying interest rate expenses every year and

paying back the whole principal at the end of the debt term. Moreover, if a company fails to meet

the debts indentures, debt-holders have the rights to force a company into bankruptcy. Another

form of long-term liabilities may also take form as a large sum of fixed expenses over a long-

term period such as the cost of leasing and other rent expenses that are in fixed operating

expenses. If a company fails to produce enough revenue to cover these long-term expenses, it

also indicates poor asset-liability management and is harmful for the company’s future.

Market Value Ratio (represented by M in the PALMS) describes most closely the performance

of a company's common stock in the stock market. There are two main financial ratios in this

category: The P/E (Price to Earnings) and B/M (Book to Market Value) Ratios. The P/E Ratio is

7
normally used to determine whether a stock is 'expensive' or 'cheap'13. This indicates that a

company's common stock is priced based on the company’s ability to grow (generate) earnings.

Therefore, the logic is that the lower the stock price of a company compares to the ability of the

company generating earnings (as represented by the current earnings report14), the more

undervalued (cheaper) the stock is. The B/M Ratio assesses the difference of perception between

the market and the company’s management on the ‘real’ value of a company. This means, when

a company sells its stocks, the selling price of these stocks were recorded in the company’s

balance sheet, being established as the book value of the company. The market perception is

represented by the current price of the company’s common stock. If the B/M ratio is low, it

indicates that the value of the company may be higher than what the market currently thinks.

Therefore stocks with low B/M ratio are usually considered undervalued and worth buying.

Finally, the S in the PALMS, provides a picture of a company’s ability to manage its current

asset using its current liabilities. In other words, it is expected that a company holds enough

assets that can be quickly converted into cash, to pay its short-term (less than one-year) liabilities

such as credit purchases and interest expenses. If a company has current assets which are too low

compared to its current liabilities, it may mean that in an emergency event, the company may not

be able to make the necessary payments. The Quick and Cash Ratios refer more specifically to

the amount of cash that a company has to possess in order to pay off its current liabilities.

Furthermore, the level of balance between current assets and current liabilities may also be worth

looking at through the Net Working Capital ratio.

13
The term 'expensive' and 'cheap' are suggested in introductory business courses to provide an easier way of
understanding the concept.
14
Earnings here should be calculated from the Net Income minus all preferred preferences. This is because P/E ratio
is used to assess a company's common stock and common stockholders are only entitled to the 'extra' income after
all other preferred outflows have been delivered.

8
Caveats on Consistency and Comparability:

Consistency and comparability are two of the basic concepts of GAAP. Financial ratios are the

result of a relationship between two or more items in a company’s financial statement. Therefore,

it is important to maintain consistency in calculating the financial ratios. If consistency is

neglected, the results of the financial ratios have no real significance and there can be no valid

comparability between periods of the same entity or as between two like entities.

Comparability falls apart when either the numerator or denominator in the financial ratios is

incorrectly calculated. For instance, if accounts receivable contains amounts for receivables

which are not due within 12 months, the numerator for current assets is overstated. Also, if a

bank loan due in 9 months is improperly classified as a long-term liability, current liabilities will

be understated. Similar misclassifications can occur within the components of any ratios,

rendering the result as misleading or useless.

Additionally, comparability also refers to the importance of choosing the appropriate benchmark,

because a benchmark supplies reference points that assess the performance of a company against

its competitors as well as being compared to the expectation of investors and analysts. Good

benchmarks and good ratios allow management to change direction and really manage a

company for optimum results. Unfortunately, possible manipulation by top management requires

good analysis to detect deception. Off balance sheet method, window dressing, related party

transactions, premature or false revenue recognition, are a few of the items that can alter

(modify) the ratios mentioned above. Thus, if these practices are present, assessing the financial

position of one company against its competitive benchmark will not truly reflect reality.

9
The issue of good analysis to detect deception of top management has become more important,

especially after the Sarbanes-Oxley Act of 2002. The act encourages effective corporate

governance that puts a great deal of emphasis on the independent directors to act more

responsibly. This means, not following the CEO or CFO blindly, but to use their background,

experience, and business acumen to ask a lot of questions and really direct their company to

future ongoing success.

Conclusion:

The use of ratios has become a common technique to measure the performance of our day-to-day

lives. Financial ratios provide an assessment of a company’s financial position relative to its

industry or peer. This is because ratios are basically a comparison of two or more items.

Although the calculation process is simple, there are so many of them, that sometimes it can lead

to potential confusion in their practical usage. This article introduces the PALMS method to help

analysts better organize the process of their analysis of a company’s financial position. More

specifically, PALMS allows its users to conduct the analysis in a systematic and intuitive

manner. Additionally, by using PALMS, users will hopefully be better able to understand a

company’s financial stance without missing any important information about the company.

Lastly, even though financial ratios may be easily abused due to its simplicity and sources of

accounting data, they are able to provide a platform of benchmarking, which can be a good

method of control and a springboard for inquiring into variances for firms to evaluate themselves

and see where they stand in the business world.

10
Table 1

Discussion on Financial Ratios Analysis in Corporate Finance Textbooks

(in Alphabetical order of the first author)

Discussion on Financial Ratios

Author Edition Title of Textbook Publisher
Analysis
Block and Hirt 11th, Foundations of McGraw-Hill Part II: Financial Analysis and
2005 Financial Management Irwin Planning;
Chapter 3: Financial Analysis
Bodie and Merton 2000 Finance Prentice Hall Part I: Finance and The Financial
System;
Chapter 3: How to Interpret and
Forecast Financial Statements
Brigham and 3rd, Fundamentals of South- Part I: Introduction to Financial
Houston 2000 Financial Management Western, Management;
Thomson Chapter 3: Analysis of Financial
Learning Statements
Brealey and Myers 7th, Principles of Corporate McGraw-Hill Part IX: Financial Planning and Short-
2003 Finance Irwin term Management; Chapter 29:
Financial Analysis and Planning
Brealey, Myers, 4th, Fundamentals of McGraw-Hill Part VI: Financial Planning; Chapter
and Marcus 2004 Corporate Finance Irwin 17: Financial Statement Analysis

Damodaran 2nd, Corporate Finance: Wiley Part I: Introduction to Corporate

2001 Theory and Practice Finance;
Chapter 4: Understanding Financial
Statements
Eakins 2nd, Finance: Investments, Addison Part III: Foundations of Corporate
2004 Institutions, and Wesley Finance;
Management - Update Chapter 14: Financial Statement and
Ratio Analysis
Emery, Finnerty, 2nd, Corporate Financial Prentice Hall Part I: Foundations;
and Stowe 2004 Management Chapter 3: Accounting, Cash Flows,
and Taxes
Gallagher and 3rd, Financial Management: Prentice Hall Part II: Essential Concepts in Finance;
Andrew 2003 Principles & Practice Chapter 5: Analysis of Financial
Statements
Gitman 10th, Principles of Addison Part I: Introduction to Managerial
2003 Managerial Finance Wesley Finance;
Chapter 2: Financial Statements and
Analysis
Gitman and 2001 Introduction to Finance Addison Part II: Financial Tools for Firms and
Madura Wesley Investors;
Chapter 8: Financial Statements and
Analysis
Keown, Martin, 10th, Financial Management: Prentice Hall Part I: The Scope and Environment of
Petty, and Scott Jr. 2005 Principles and Financial Management;
Applications Chapter 3: Evaluating a Firm's
Financial Performance

11
Keown, Martin, 4th, Foundations of Prentice Hall Part I: The Scope and Environment of
Petty, and Scott Jr. 2003 Finance: The Logic and Financial Management;
Practice of Financial Chapter 4: Evaluating a Firm's
Management Financial Performance
Ross, Westerfield, 7th, Corporate Finance McGraw-Hill Chapter 2: Financial Planning and
and Jaffe 2005 Irwin Growth
Ross, Westerfield, 4th, Essentials of Corporate McGraw-Hill Part II: Understanding Financial
and Jordan 2004 Finance Irwin Statements and Cash Flow;
Chapter 3: Working with Financial
Statements
Ross, Westerfield, 6th, Fundamentals of McGraw-Hill Part II: Financial Statements and
and Jordan 2003 Corporate Finance Irwin Long-Term Financial Planning;
Chapter 3: Working with Financial
Statements
Van Horne 12th, Financial Management Prentice Hall Part IV: Tools of Financial Analysis
2002 and Policy and Control;
Chapter 12: Financial Ratio Analysis
Van Horne and 11th, Fundamentals of Prentice Hall Part III: Tools of Financial Analysis
Wachowicz Jr. 2001 Financial Management and Planning;
Chapter 6: Financial Statement
Analysis
Werner and Stoner 2002 Fundamentals of Authors Part I: About Finance and Money;
Financial Managing Academic Chapter 2: Data for Financial Decision
Press Making
Werner and Stoner 2001 Modern Financial Authors Part I: Introduction;
Managing: Continuity Academic Chapter 4: Data for Financial Decision
& Change Press Making

12
Exhibit 1

PALMS for Financial Ratios

LONG-TERM SOLVENCY

MARKET VALUE
ASSET UTILIZATION

S
H
PROFITABILITY O
R
T

T
E
R
M

S
O
L
V
E
N
C
Y

13
Exhibit 2

Aliases of the PALMS

The Big Five in PALMS Aliases

Profitability Ratios
Operational / Efficiency / Managerial Decision /
Asset Utilization Ratios Activity / Turnover Ratios

Long-term Solvency Leverage / Debt Management Ratios

Ratios

Market Value Ratios Return to Investors Ratios

Short-term Solvency Working Capital / Liquidity Ratios

Ratios

14
Exhibit 3

The Fundamental Process of Analyzing A Company’s Business Activities

1
Profit
4

11
Investors 2
watching for Assets
the company’s
market value

3
Sources of
Funding

Day-to-day 5
Activities

15
Exhibit 4

The List of Financial Ratios that Are Commonly-Used in Financial Analysis (not exhaustive)

P rofitability Ratios

Net Income
Profit Margin (1) =
Sales

Net Operating Income

Profit Margin (2) =
Sales

Gross Margin
Profit Margin (3) =
Sales

Net Income
ROA =
Total Assets

Net Income
ROE P1 =
Total Equity

A sset utilizations Ratios A1

Costs of Goods Sold

Inventory Turnover A2 =
Average Inventory

365 Days
Day's of Sales of Inventory A3 =
Inventory Turnover

Credit Sales
Receivable Turnover A4 =
Average Accounts Receivable
P1
It is very common to include the very long-term debts (over 30-year maturity) as part of the denominator.
A1
Financial ratios in this category are also commonly used to assess a firm's liquidity.
A2
An average of quarterly or monthly end-of-the-month inventory data should provide a more accurate picture than
the one-off end-of-the-year inventory data.
A3
A more realistic consideration should take into account that the actual operating days of a firm during a one-year
period is approximately 250 days.
A4
An average of quarterly or monthly end-of-the-month accounts receivables data should provide a more accurate
condition than the one-off end-of-the-year accounts receivables data.

16
 365 Days
Average Collection Period A5 =
Receivable Turnover

Sales
Net Working Capital Turnover =
Net Working Capital

Sales
Fixed Asset Turnover =
Net Fixed Assets

Sales
Total Asset Turnover =
Total Assets

L ong-term Solvency Ratios

Total Liabilities
Total Debt Ratio =
Total Assets

Long - term Debt

Debt to Equity Ratio / Leverage =
Total Equity

TotalAssets
Equity / Financial Leverage Multiplier =
TotalEquity

Long - term Debt

Long-term Debt Ratio =
Long - term Debt + Total Equity

Net Operating Income

Times Interest Earned Ratio =
Interest

Net Operating Income + Depreciation

Cash Coverage Ratio =
Interest

Net Operating Income

Fixed Charges Coverage Ratio =
Rent + Operating Leases

A5
It should be considered that 250 days may be a more accurate numerator.

17
M arket Value Ratios

Price Per Share

Price to Earnings Ratio M1 =
Earnings Per Share

Fully-diluted Earnings per share =

Net Income - Preferred Preferences

Number of Shares of Common Stocks Outstanding including maximumdilution of commonshares
Market Value Per Share
Book-to-Market Ratio =
Book Value Per Share

Total Equity - Preferred Preferences

Book Value per share =
Number of Shares of Common Stocks Outstanding

Dividend Paid Per Common Stock

Dividend Yield =
Market Price of Common Stock

S hort-term Solvency Ratios

Current Assets
Current Ratio =
Current Liabilities

Current Assets - Inventory

Quick Ratio =
Current Liabilities

Cash + Cash Equivalent

Cash Ratio =
Current Liabilities

Net Workin g Capital

Net Working Capital to Total Assets =
Total Assets

Current Assets
Interval Measure =
Average Daily Operating Costs

M1
P/E Ratio is commonly used for assessing common stocks. Therefore, the price per share should be the price of
the common stock.

18
BIBLIOGRAPHY

Block, S.B. and Hirt, G. (2005). Foundations of Financial Management, 11th Edition, McGraw-
Hill Irwin.
Bodie, Z. and Merton, R.C. (2000), Finance, Prentice Hall.
Brigham, E.F. and Houston, J.F. (2000). Fundamentals of Financial Management, 3rd Edition,
South-Western, Thomson Learning.
Brealey, R.A. and Myers, S.C. (2003). Principles of Corporate Finance, 7th Edition, McGraw-
Hill Irwin.
Brealey, R.A., Myers, S.C., and Marcus, A.J. (2004). Fundamentals of Corporate Finance, 4th
Edition ,McGraw-Hill Irwin.
Damodaran, A. (2001). Corporate Finance: Theory and Practice, 2nd Edition, Wiley.
Eakins, S. (2004). Finance: Investments, Institutions, and Management – Update, 2nd Edition,
Addison Wesley.
Emery, D.R., Finnerty, J.D., and Stowe, J.D. (2004). Corporate Financial Management, 2nd
Edition, Prentice Hall.
Gallagher, T.J. and Andrew, J.D. (2003). Financial Management: Principles & Practice, 3rd
Edition, Prentice Hall.
Gitman, L.J. (2003). Principles of Managerial Finance, 10th Edition, Addison Wesley.
Gitman, L.J. and Madura, J. (2001). Introduction to Finance, Addison Wesley.
Kaminski K.A.; Wetzel T.S.; Guan L. (2004). Can financial ratios detect fraudulent financial
reporting? Managerial Auditing Journal 19 (1), 15-28.
Keown, A.J., Martin, J.D., Petty, J.W., and Scott Jr., D.F. (2005). Financial Management:
Principles and Applications, 10th Edition, Prentice Hall.
Keown, A.J., Martin, J.D., Petty, J.W., and Scott Jr., D.F. (2003). Foundations of Finance: The
Logic and Practice of Financial Management, 4th Edition, Prentice Hall.
Lanez J.A.; Callao S. (2000). The effect of accounting diversity on international financial
analysis: empirical evidence. The International Journal of Accounting 35 (1), 65-83.
McLeay S.; Trigueiros D. (2002). Proportionate Growth and the Theoretical Foundations of
Financial Ratios. Abacus 38 (3), 297-316.
Ross, S.A., Westerfield, R.W., and Jaffe, J. (2005). Corporate Finance, 7th Edition, McGraw-
Hill Irwin.

19
Ross, S.A., Westerfield, R.W., and Jordan, B.D. (2004). Essentials of Corporate Finance, 4th
Edition, McGraw-Hill Irwin.
Ross, S.A., Westerfield, R.W., and Jordan, B.D. (2003). Fundamentals of Corporate Finance, 6th
Edition, McGraw-Hill Irwin.
Van Horne, J.C. (2002). Financial Management and Policy, 12th Edition, Prentice Hall.
Van Horne, J.C. and Wachowicz Jr., J.M. (2001). Fundamentals of Financial Management, 11th
Edition, Prentice Hall.
Werner, F.M. and Stoner, J.A.F. (2002). Fundamentals of Financial Managing, Authors
Academic Press.
Werner, F.M. and Stoner, J.A.F. (2001). Modern Financial Managing: Continuity & Change,
Authors Academic Press.

20