Description
top
Taking the ten principles of finance one step further!
Financial Management 5e provides students with an overview of financial management suited to the first course in finance. The focus of the text is on the big picture, providing an introduction to financial decision making grounded in current financial theory and the current state of world economic conditions. Attention is paid to both valuation and capital markets, as well as their influence on corporate financial decisions. The ten basic principles of finance are introduced in the first chapter and woven throughout the text, to give students a solid foundation from which to build their knowledge of finance.
New To This Edition
top
MyFinanceLab is a fully integrated homework and tutorial system that solves one of the biggest teaching problems in finance courses: the best way to learn finance is by solving problems, but lecturers may not have time to grade complex, multi-step problems. With algorithmically generated exercises that mirror the end-of-chapter problems, partial-credit grading, and an easy-to-use online gradebook, MyFinanceLab revolutionises homework and practice.
Three new chapters on Options and Futures, International Business Finance, and Mergers and Acquisitions give broader and deeper coverage for the first unit in finance.
Individual case studies at the end of each chapter tie the theories covered in the chapter back to a business scenario and encourage students to think critically.
Back to the principles - reiterates the ten founding principles of finance in the context of coverage in each chapter.
FYI
(For Your Information) - provides extra insights and interesting information on finance issues and concepts where relevant throughout each chapter.
Finance at Work highlights real life applications of the principles just discussed, so that students can understand the relevance of textbook subject matter.
Concept Check - checks student comprehension of the section they have just read.
These were introduced due to reviewer feedback.
Web Works provide useful internet links and questions to make finance topics relevant and engaging.
One step further gives more detail on topics for those students that want to go beyond the 'basics'.
New and significantly increased number of end-of-chapter questions, as well as MyFinanceLab icons throughout the text to encourage students to look for more practice questions there.
Solutions to self-test questions now available on MyFinanceLab rather than in the textbook.
Features and Benefits
top
Learning objectives, outlined at the beginning of each chapter and referenced throughout with summaries at the end of each chapter, give students an excellent revision tool.
Finance at work - boxed feature of contemporary real-world media extracts highlighting the relevance of finance to the business world.
International spotlight - boxed feature with examples of international finance highlighting the continued globalisation of world markets.
Web Works provide useful internet links and questions to make finance topics relevant and engaging.
In-margin glossary gives students definitions for important financial terminology adjacent to the first appearance of the term in the chapter.
End-of-chapter problems and questions give students the opportunity to review and revise their knowledge of theory and practice by solving problems. Extra problems and solutions to the problems in the text can be found in MyFinanceLab.
Table of Contents
top
PART 1: SCOPE AND ENVIRONMENT OF FINANCIAL MANAGEMENT
Chapter 1: The role of financial management
Chapter 2: The tax environment
Chapter 3: The financial markets
Chapter 4: The time value of money
PART 2: FINANCIAL PLANNING AND ANALYSIS AND WORKING-CAPITAL MANAGEMENT
Chapter 5: Evaluating a firm's financial performance
Chapter 6: Financial forecasting, planning and budgeting
Chapter 7: Working-capital management and short-term financing
Chapter 8: Current asset management
PART 3: VALUATION AND MANAGEMENT OF LONG-TERM INVESTMENTS
Chapter 9: Risk and rates of return
Appendix: Measuring a share's return and risk using a calculator
Chapter 10: Valuation of bonds and shares
Appendix: The relationship between value and earnings
Chapter 11: Capital budgeting: concepts and methods
Chapter 12: Capital budgeting: cash-flow identification issues and project ranking conflicts
Chapter 13: Risk in capital budgeting
Chapter 14: Cost of capital
PART 4: FINANCIAL STRUCTURE AND DIVIDEND POLICY
Chapter 15: Analysis and impact of leverage
Chapter 16: Planning the firm's financing mix
Chapter 17: Dividend policy and internal financing
PART 5: LONG-TERM FINANCING
Chapter 18: Long-term debt finance
Appendix: Introduction to lease finance
Chapter 19: Shares and convertible securities
PART 6: SPECIAL TOPICS IN FINANCE
Chapter 20: International business finance
Chapter 21: Managing risk with financial derivatives
Chapter 22: Mergers and acquisitions
APPENDIXES
Appendix A: Compound sum of $1
Appendix B: Present value of $1
Appendix C: Sum of an annuity of $1 for n periods
Appendix D: Present value of an annuity of $1 for n periods
Instructor Resources:
Solutions manual
PowerPoint slides
Computerised test bank
About the Authors
top
Dr Michael Burrow is a senior lecturer in the School of International Business at the University of South Australia. His areas of special interest include international financial management and corporate finance.
Peter Martin is a financial consultant and former Head of School of Economics and Finance at the University of South Australia. His areas of expertise include interest risk management, leasing and asset/liability management.
Dr Hoa Nguyen is a lecturer in the School of Accounting, Economics and Finance at Deakin University. Her areas of interest are Financial Derivatives, Risk Management and Interest Rate and Foreign Currency Hedging.
