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Guide to Financial Analysis
This book focuses upon the analytical techniques that are useful in the financial decision-making process. Recently. significant advances in the use of such tools have been made. Unfortunately. the literature dealing with newer developments in financial tools is often of limited use to the professional person who may have been trained in an earlier period. This material is either scattered in numerous journal articles. or directed toward the student of academic finance rather than the profes-sional. The objective of this book is to eliminate the void.
The subject matter includes more than the new developments in finance. Many analytical techniques that have long been popular among financial analysts are still important and will be thoroughly discussed.
For example. ratio analysis and break-even analysis have endured the test of time. These forms of analyses provide needed information for the decision maker and are relatively simple to apply.
While the book is directed toward the professional business man-ager. it can also be of benefit in college courses which are concerned with practical decision making in business finance. Despite the fact that the prerequisite training for understanding the material is minimal. some knowledge of elementary accounting is helpful. Prior training in finance or economics or in mathematics beyond the elementary concepts of algebra is not necessary. Analytical procedures which draw on these fields will be thoroughly explained in the text.
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