Basic Financial Management

This is the new Australian edition of the successful US finance text Basic Financial Management . The Australian author team has thoroughly revised and rewritten this popular text to reflect the Australian financial environment. The material has been class-tested with students to ensure clarity and accuracy. The text is aimed at students taking their first business finance course, so the emphasis has been on the accessibility of the text. A development editor has worked with the authors to improve the pedagogical features and enhance student learning. New features like the learning objectives have been added to the Australian text. An introductory paragraph explicitly states the coverage of each chapter and specific student learning outcomes are listed in point form. A new design makes extensive use of the second colour to highlight special features in the text. This book introduces students to the principles of finance that are relevant to Australia. Unlike most comparable texts at the basic level, the book has been extensively rewritten to embrace the effects of the dividend imputation system. The authors introduce at an early stage a comprehensive chapter on the tax system. This is reinforced through subsequent chapters that build-up the implications of the imputation system for returns to investors, investment decisions, financing decisions and dividend decisions. Contemporary material is used to show the difference between companies that are well integrated with the imputation system and those companies that use the classical tax system. The taxation implications for non-company business entities are also examined in the text. As well as the systematic introduction to the implications of the imputation system throughout the book, all other chapters that require an Australian orientation have been extensively rewritten, with new chapters on long-term financing that emphasize the greater reliance on institutional finance in Australia (Ch 18-20), derivatives and financial risk (Ch 21), small and medium enterprises (Ch 22) and international financial management (Ch 23). While there have been significant changes to the content the authors have ensured that the readability and user-friendly style of the original text have been retained and enhanced by some new features. All concepts are explained fully and clearly in the text and are well supported with illustrative material and examples.

This book provides an introduction to financial decision making that is rooted both in current financial theory and world economic conditions. The text presents ten basic principles (or axioms) of finance in the opening chapter and weaves these concepts throughout the book. The student is presented with a cohesive, interrelated subject from which future, as yet unknown problems can be approached. The authors' goal is to provide a cohesive and enduring understanding of the basic tools and fundamental principles upon which finance is based.