Short-Term Financial Management: Text and Cases

This text is an attempt to bring together two important ingredients. First, an understanding of institutional background is essential to appreciate short-term finance problems. Second, we bring in established financial concepts and show how shareholder wealth maximization can be modeled under the constraints imposed by institutions, ethics, resources, etc.

This text covers the rapidly growing field of short-term financial management. Also known as "working capital management" or "treasury management," the field is an area of corporate finance that's essential for prospective bankers and for finance majors preparing to work in a corporate treasurer's department or corporate controller's department. Two aspects of coverage and framework distinguish this book from other texts for the course: First, important institutional background, including the banking system, the payment system, and the regulatory environment, which influences and even creates many of the problems in short-term finance. Second, a consistent valuation framework, which enables students to structure and solve short- term finance problems in terms of present value techniques. This edition reflects new banking regulations, describes global aspects of short- term finance problems, and contains model solved problems after all analytical chapters, as well as new and additional cases--eliminating the need for cases outside the text.