Description
The fourth edition of Essentials of Financial Management continues to provide students with a focused understanding of today's corporate finance and financial management. This market-leading text offers a unique balance of clear concepts, contemporary theory, and practical applications in order to help students understand the concepts and reasons behind corporate budgeting, financing, working capital decision making, forecasting, valuation, and the time value of money. It has been updated to include discussions of several major events such as the European debt crisis, the continued weakness in the economy, the dramatic run-up in the U.S. stock market between 2011 and 2014, and growing unrest around the world.
Features
Learning Tools Ensure Student Understanding. Self-test Problems for students appear immediately after each major section of the chapter and enable students to test their comprehension before moving ahead. In addition, integrated spreadsheet models guide students in developing effective techniques for financial problem solving.
Author-Written Supplements Provide Consistency. Prepared by the authors to ensure consistency, the seamless, integrated package includes an Instructor’s Manual, Test Bank, as well as resources such as Web Appendices, Excel Spreadsheet Models, and a Glossary.
Balance of Theory and Practice Keeps Students Engaged and Focused. Introduces important financial theories using a practically focused presentation. Students immediately see the impact and importance of financial theories and trends at work through recent real financial and business world examples, practical problem sets, and integrated mini-cases.
New to this Edition
Taking a Closer Look: the old Thomson One problems have been revised so that they can now be used with general Internet financial websites.
Real-world data in tables have been expanded and updated, and New Internet problems have been added in Chapters 9, 18, 19, 20, and 21.
New examples added where recent events help illustrate the key concepts covered in the text, and significant changes to many opening vignettes.
Changes in 2014 tax rates and laws in the US, and their impacts, are discussed throughout the text, especially in the capital structure and dividend chapters.
Quick Questions: Additional Quick Questions are included in Chapters 3, 4, 7, and 8.
Table of Contents PART I. Introduction to Financial Management.
1 An Overview of Financial Management.
2 Financial Markets and Institutions.
PART II. Fundamental Concepts in Financial Management and Financial Forecasting.
3 Financial Statements, Cash Flow, and Taxes.
4 Analysis of Financial Statements.
5 Time Value of Money.
6 Financial Planning and Forecasting.
PART III. Financial Assets.
7 Interest Rates.
8 Risk and Rates of Return.
9 Bonds and Their Valuation.
10 Stocks and Their Valuation.
PART IV. Investing in Long-Term Assets: Capital Budgeting.
11 The Cost of Capital.
12 The Basics of Capital Budgeting.
13 Cash Flow Estimation and Risk Analysis.
14 Real Options and Other Topics in Capital Budgeting.
PART V. Capital Structure, Dividend Policy, and Working Capital Management.
15 Capital Structure and Leverage.
16 Distributions to Shareholders: Dividends and Share Repurchases.
17 Working Capital Management. PART VI Special Topics in Financial Management.
18 Derivatives and Risk Management.
19 Multinational Financial Management.
20 Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles.
21 Mergers and Acquisitions.
App. A. Solutions to Self-Test Questions and Problems.
App. B. Answers to Selected End-of-Chapter Problems.
App. C. Selected Equations and Tables.
App. D. Frequently Used Symbols/Abbreviations.
App. E. Present and Future Values Table.