List of figures |
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List of tables |
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Preface |
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xv | |
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1 | (6) |
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4 | (1) |
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5 | (2) |
Part I Financial institutions |
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7 | (78) |
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2 Financial institutions and markets |
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9 | (49) |
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2.1 Theory: Interaction between lenders and borrowers |
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10 | (11) |
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2.2 Banks as institutions |
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21 | (30) |
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51 | (4) |
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55 | (1) |
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55 | (1) |
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56 | (2) |
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3 Financial understanding of accounting concepts |
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58 | (27) |
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3.1 Understanding the balance sheet |
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61 | (5) |
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66 | (3) |
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3.3 Comparing cash and accrual accounting |
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69 | (1) |
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3.4 Statement of cash flows |
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70 | (3) |
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3.5 Statement of change in owner's equity |
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73 | (1) |
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3.6 Accounting issues for the farm firm |
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74 | (6) |
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3.7 Pro forma - what could be |
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80 | (1) |
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81 | (1) |
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82 | (1) |
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82 | (3) |
Part II Deterministic analysis |
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85 | (62) |
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4 Ratio analysis and the DuPont system |
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87 | (23) |
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4.1 Return on owner's equity |
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88 | (3) |
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4.2 The DuPont identity of return on equity |
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91 | (6) |
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97 | (1) |
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4.4 Asset management ratios |
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98 | (4) |
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102 | (1) |
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103 | (1) |
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104 | (1) |
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4.8 Common sized financial statements |
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105 | (3) |
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108 | (1) |
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109 | (1) |
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109 | (1) |
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109 | (1) |
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110 | (37) |
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5.1 The mathematics of the time value of money |
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111 | (5) |
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5.2 Net present value - the basic mechanics |
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116 | (4) |
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120 | (3) |
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5.4 Advanced topics in present value analysis |
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123 | (16) |
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5.5 Other methods of investment analysis |
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139 | (4) |
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143 | (1) |
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144 | (1) |
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144 | (3) |
Part III Risk in investment |
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147 | (48) |
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6 Valuing investment under risk and uncertainty |
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149 | (22) |
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6.1 The expected utility hypothesis |
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150 | (5) |
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6.2 Diversification of risk - portfolio analysis |
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155 | (3) |
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6.3 Market valuation of risk |
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158 | (9) |
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167 | (1) |
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168 | (1) |
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169 | (2) |
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171 | (20) |
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7.1 Cost and benefits of debt |
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171 | (6) |
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177 | (6) |
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7.3 A numeric example - commercial Nebraska farms |
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183 | (4) |
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187 | (1) |
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187 | (3) |
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190 | (1) |
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191 | (4) |
Appendix A Capital structure of agriculture |
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195 | (17) |
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A.1 Boundaries of the firm - Coase's theorem |
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197 | (2) |
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A.2 Institutional organization of the firm |
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199 | (8) |
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207 | (5) |
Appendix B A mathematical model of the financial market |
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212 | (4) |
Appendix C Agricultural credit and monetary policy |
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216 | (23) |
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C.1 History of money and banking in the United States |
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216 | (20) |
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C.2 Agricultural banks and monetary policy |
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236 | (3) |
Appendix D Present value formulas and phobias |
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239 | (4) |
Appendix E Cash versus market value balance sheets |
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243 | (20) |
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E.1 Predictive use of financial statements in making a loan |
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244 | (4) |
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E.2 Informational differences between historical and market values |
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248 | (10) |
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258 | (5) |
Appendix F Specialized topics in present value analysis |
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263 | (8) |
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F.1 Present value - to include or exclude financing flows? |
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263 | (2) |
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F.2 Present value models and the price of farmland |
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265 | (2) |
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F.3 Stochastic net present value |
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267 | (4) |
Glossary |
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271 | (6) |
Notes |
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277 | (2) |
References |
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279 | (4) |
Author index |
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283 | (2) |
Subject index |
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285 | |