Description

A practical introduction to understanding the Financial Management of companies in today’s rapidly changing business world.

Maintaining its dedication to the financial decision-making process and the analysis of value creation, this new 13th edition develops a more international scope and introduces new topics into the debate.

Current discussions on corporate governance, ethical dilemmas, globalization of finance, strategic alliances and the growth of outsourcing have been added with examples and boxed features to aid understanding and provide a more global perspective of financial management

This book is particularly well-suited to introductory courses in financial management, for a professional qualification and as a reference for practitioners. On the reading list for Association of Chartered Certified Accountants (ACCA) Qualification Paper (F9) Financial Management. Suggested reading for Certified Management Accountant (CMA) examination.

 

Features

• Covers the 3 key areas of financial management decisions: investment, financing and asset management
• New! Additional coverage of short term financing and overdrafts, Corporate Social Responsibility and binomial real options.
• New! Expanded Chapter 9 Cash and Marketable Securities Management
• New! Coverage of Islamic Finance

For Lecturers

• New for this edition, Powerpoint slides for each chapter integrating and demonstrating how excel can be used to help solve calculations.
• Extensive Instructor’s manual including answers to questions, solutions to problems and solutions to self-correction problems.
• Testbank of additional question material

For students

• Multiple choice, true/false and essay questions to test your understanding PowerPoint presentations for each chapter to remind you of key concepts 
• An online glossary to explain key terms and flash cards to test your knowledge of key terms and definitions in each chapter
• Excel templates for end of chapter problems to help you model a spread sheet approach to solving the problem

 

New to this Edition

• Chapter 1 - Expanded coverage of Corporate Social Responsibility including the concept of sustainability.
• Chapter 6 – The discussion of financial statement analysis includes the push for convergence of accounting standards around the world
• Chapter 9 – Cash and marketable securities management material expanded and updated

• Chapter 24 - The updated chapter on International Financial Management includes discussion of Islamic Sukuk Bonds.

Table of Contents

PART ONE: INTRODUCTION TO FINANCIAL MANAGEMENT
1. The Role of Financial Management
2. The Business, Tax and Financial Environments
PART TWO: VALUATION
3. The Time Value of Money
4. The Valuation of Long-Term Securities
5. Risk and Return
Appendix A: Measuring Portfolio Risk
Appendix B: Arbitrage Pricing Theory
PART THREE: TOOLS OF FINANCIAL ANALYSIS AND PLANNING
6. Financial Statement Analysis
Appendix: Deferred Taxes and Financial Analysis
7. Funds Analysis, Cash-Flow Analysis, and Financial Planning
Appendix: Sustainable Growth Modeling
PART FOUR: WORKING CAPITAL MANAGEMENT
8. Overview of Working Capital Management
9. Cash and Marketable Securities Management
10. Accounts Receivable and Inventory Management
11. Short-Term Financing
PART FIVE: INVESTMENT IN CAPITAL ASSETS
12. Capital Budgeting and Estimating Cash Flows
13. Capital Budgeting Techniques
Appendix A: Multiple Internal Rates of Return
Appendix B: Replacement Chain Analysis
14. Risk and Managerial Options in Capital Budgeting
PART SIX: THE COST OF CAPITAL, CAPITAL STRUCTURE, AND DIVIDEND POLICY
15. Required Returns and the Cost of Capital
Appendix A: Adjusting the Beta for Financial Leverage
Appendix B: Adjusted Present Value
16. Operating and Financial Leverage
17. Capital Structure Determination
18. Dividend Policy
PART SEVEN: INTERMEDIATE AND LONG-TERM FINANCING
19. The Capital Market
20. Long-Term Debt, Preferred Stock, and Common Stock
Appendix: Refunding A Bond Issue
21. Term Loans and Leases
Appendix: Accounting Treatment of Leases
PART EIGHT: SPECIAL AREAS OF FINANCIAL MANAGEMENT
22. Convertibles, Exchangeables, and Warrants
Appendix: Option Pricing
23. Mergers and Other Forms of Corporate Restructuring
Appendix: Remedies for a Failing Company
24. International Financial Management

Back Cover

Fundamentals of Financial Management: Cover Blurb

Do you want to understand how financial decisions impact the value of a company? If you are new to financial management or studying for a professional qualification, this user friendly textbook makes the challenges facing today’s rapidly changing business world easier to understand.

Now in its 13th edition, Fundamentals of Financial Management maintains its dedication to the financial decision-making process and the analysis of value creation, but develops a more international scope and introduces new topics into the debate. Current discussions on corporate governance, ethical dilemmas, globalization of finance, strategic alliances and the growth of outsourcing have been added with examples and boxed features to aid understanding and provide a more global perspective of financial management.

What’s New?

• Chapter 1 - Expanded coverage of Corporate Social Responsibility including the concept of Sustainability
• Chapter 6 – The discussion of financial statement analysis includes the push for convergence of accounting standards around the world
• Chapter 9 – Cash and marketable securities management material expanded and updated
• Chapter 24 - The updated chapter on International Financial Management includes discussion of Islamic sukuk bonds.

Ideal for introductory courses in financial management, for a professional qualification and as a reference for practitioners.

On the reading list for Association of Chartered Certified Accountants (ACCA) Qualification Paper (F9) Financial Management.

Suggested reading for Certified Management Accountant ( CMA) examination.

Translated into over 10 languages and received 1st place among business academic texts in Pearson’s top 50 best seller’s translation list.

Visit www.pearsoned.co.uk/wachowicz to access free student recourses including: 

• Self-test multiple choice, true/false and essay questions.
• Link to author’s award-winning website for even more online testing material, along with exercises and regularly updated links to additional support material.
• Online glossary to explain key terms.
• Excel templates for spread-sheet approach to end-of-chapter problem solving.
• New for this edition! Link to PowerPoint slides on key chapters and learn how to use Excel to solve problems.

Quotations:

“The book provides the reader with information about the current “hot-topics” in finance and has a clear emphasis on the basic principles of financial management without repetition. Furthermore, as simple language is used, the book can be easily understood by students that are not native speakers of English.”

   --Axel-Adam Muller, Lancaster

“..a useful text either as preparation for a second year course, or as a text for a first

   year financial management course that provides a “first sweep” of the major

   financial management topics. Not many texts cover this ground well.”

   -- Brian Wright,  Exeter

“This is the best book I have found so far”

   --Jean Bellemans, Free University of Brussels

Authors:

James C. Van Horne, Professor of Banking and Finance at Stanford University. Also the author of Financial Management and Policy, a Pearson Education text.

John Wachowicz, Jr., Professor of Finance at The University of Tennessee.

Author

James C. Van Horne,Professor of Banking and Finance at Stanford University. Also the author of Financial Management and Policy, a Pearson Education text.

John Wachowicz, Jr.,Professor of Finance at The University of Tennessee.