Synopsis
The objective of Corporate Financial Management, 4th Edition is to introduce students to those principles essential to the understanding of financial problems and the policies that financial managers use to contend with these problems. To achieve this objective, the text stresses practical application in a user-friendly format. This textbook is suitable for both undergraduate- and graduate-level core courses in finance: financial management and corporate finance. We have written the text in a clear, concise, and practical manner.
Students will be exposed to all of the key tools and techniques of financial management and corporate finance without a complex treatment of theoretical financial concepts. Students find different ways to master a subject, but we believe that the case-study approach is the most effective. Although this text is not a casebook, we have included 12 short cases designed to illustrate a series of real-life, current, and decision-oriented financial problems. These cases should be particularly useful for those instructors who wish to use this text for the two-semester sequence on financial management and corporate finance. The case-study approach allows instructors to use a hands-on orientation. They can use these cases for student presentations, homework assignments, or classroom discussions. These cases should enable students to strengthen their practical understanding of financial concepts and techniques. Without the added expense of a separate casebook, students can apply what they have learned in practical settings.
The text focuses on investment and financing decisions, with an emphasis on providing the student with a real-world, practical understanding of concepts. Throughout the fifth edition of Corporate Financial Management, we have incorporated numerous examples to illustrate problem-solving, especially in present value analysis. The text illustrates problem-solving of all relevant concepts mathematically with equations and by financial calculator, using the Texas Instruments BA II Plus. Step-by-step financial calculator instructions are provided for all relevant problems.
The text s structure was carefully designed to ensure a smooth transition from accounting to financial management. A number of the text's earlier chapters include a thorough review of accounting principles, finance terminology, and financial statements.
Instructors who want students to possess practical, job-oriented skills in finance will find that Corporate Financial Management speaks to their needs. Corporate recruiters often criticize business schools for turning out graduates who cannot contribute immediately. At the core of this criticism is the belief that while students are educated in various theories, little emphasis is placed on developing practical skills. For that reason, we were especially careful to ensure that such criticisms would not apply to those who have adopted a book that aims at developing students' skills in finance. In fact, we expect that many students will keep this book as a useful reference after they complete their course.
This text has seven parts. Part 1 (Chapters 1 and 2) discusses the primary goal of a firm an the operating environment of financial management. Part 2 (Chapters 3 through 5) explains key concepts and tools of financial planning and control. Part 3 (Chapters 6 though 8) covers management of working capital. Part 4 (Chapters 9 through 14) covers the time value of money and long-term investment decisions. Part 5 (Chapters 15 through 19) analyzes various sources of long-term financing. Part 6 (Chapters 20 and 21) examines topics of special interest, such as mergers and global finance. Part 7 discusses 12 cases in finance.
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