Financial Management: Principles and Applications, Global Edition

Series
Pearson
Author
Sheridan Titman / Arthur J. Keown / John D. Martin  
Publisher
Pearson
Cover
Softcover
Edition
13
Language
English
Total pages
720
Pub.-date
October 2017
ISBN13
9781292222189
ISBN
1292222182
Related Titles



Description

For undergraduate courses in corporate finance and financial management.

 

Develop and begin to apply financial principles

Students often struggle to see how financial concepts relate to their personal lives and prospective careers. Financial Management: Principles and Applications gives students a big picture perspective of finance and how it is important in their personal and professional lives. Utilizing five key principles, the 13th Edition provides an approachable introduction to financial decision-making, weaving in real world issues to demonstrate the practical applications of critical financial concepts.

 

Also available with MyLab Finance

MyLab™ Finance is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

 

Students, if interested in purchasing this title with MyLab Finance, ask your instructor for the correct package ISBN and Course ID. Instructors, contact your Pearson representative for more information.

Features

Tying it all together. Through relevant, contemporary examples, students can easily identify relationships between the following key financial principles:

·    Principle 1: Money has a time value.

·    Principle 2: There is a risk-return tradeoff.

·    Principle 3: Cash flows are the source of value.

·    Principle 4: Market prices reflect information

·    Principle 5: Individuals respond to incentives.

 

Getting the most out of the material. Essential Learning Aids help students understand concepts on a deeper level.

·    Financial Analysis Tools provide quick reference guides for decision-making tools used in financial analysis. Appearing throughout the book, these helpful boxes display names, details, and summaries of calculations and formulas.

·    Concept Checks give students chances to test themselves before moving on with two to five questions. These help clarify topics and make sure concepts are understood at the end of specific sections.

·    A running glossary appears in the margins to define key terms found within each section.

·    Finance in a Flat World boxes demonstrate how each chapter’s content applies to international business, including the ongoing global financial crisis.

·    Regardless of Your Major boxes, found at the beginning of each chapter, incorporate examples from other business school majors to show the wide range of applicability finance has to students and their career paths.

·    The Business of Life boxes link important financial concepts to personal finance matters, helping students see key principles in action.

·    Fundamental equations appear throughout each chapter so students can reference formulas for assignments and problems.

·    Checkpoint Worked Examples allow students to assess their progress and knowledge at specific points throughout the text.

·    Appendixes provide supplemental information on skills such as using a financial calculator and spreadsheet, and reading time value of money tables.

·    UPDATED! Finance for Life feature boxes provide parallel analysis of text discussions using real-world examples to frame key financial management concepts.

·    UPDATED! End-of-chapter problem sets help students evaluate their skills and knowledge with the most current financial management information.

·    UPDATED! Real examples and data incorporate actual companies’ case studies to reflect current conditions of the financial world.


Accessing the latest coverage.
Students are kept up-to-date on the latest in the industry with new and expanded coverage of hot topics.

·    UPDATED! Discussions of major topics increase currency of content, reflecting the most recent changes in financial markets, interest rates, and international business. Reworked content makes the text more accessible to students, especially those with an aversion to mathematics.

·    EXPANDED! Coverage of the impact of exchange rates gives students a deeper look at how changes affect the global market. A new section titled “What a Change in the Exchange Rate Means for Business” examines how exchange rate changes influence the profitability of multinational firms.


Exploring how problems unfold and how solutions develop.
Numbered checkpoints throughout the book present sample problems that model the solution approach in five simple steps.

·    Picture the Problem provides a visual representation of the problem.

·    Decide on a Solution Strategy encourages students to choose the appropriate approach.

·    Solve lays out the problem step by step, presenting the solution.

·    Analyze emphasizes the analysis of the solution, detailing the decision-making process involved.

·    Check Yourself includes a practice problem for new problem types, allowing students to work out calculations for themselves.

 

Also available with MyLab Finance

MyLab™ Finance is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts. 

·    NEW! Excel Projects. Using proven, field-tested technology, new auto-graded Excel Projects allow instructors to seamlessly integrate Excel content into their course without having to manually grade spreadsheets. Students have the opportunity to practice important Finance skills in the program, helping them to master key concepts and gain proficiency with Excel. Students simply download a spreadsheet, work live on a finance problem in Excel, and then upload that file back into MyLab Finance. Here, they receive reports on their work that provide personalized, detailed feedback to pinpoint where they went wrong on any step of the problem. These reports generate within minutes of submission.

·    UPDATED! Lecture Capture Videos. For extra review, Lecture Capture Videos walk students through concepts and problems at each checkpoint throughout the text. Students test their comprehension of key concepts using practice problems at checkpoints, and these videos help clear up any questions they may have, providing direction toward the solutions.

·    Pearson eText keeps students engaged in learning on their own time, while helping them achieve greater conceptual understanding of course material. The worked examples bring learning to life, and algorithmic practice allows students to apply the very concepts they are reading about. Combining resources that illuminate content with accessible self-assessment, MyLab Finance with Pearson eText provides students with a complete digital learning experience—all in one place.

·    Learning Catalytics helps you generate class discussion, customize your lecture, and promote peer-to-peer learning with real-time analytics. As a student response tool, Learning Catalytics uses students’ smartphones, tablets, or laptops to engage them in more interactive tasks and thinking.

o NEW! Upload a full PowerPoint® deck for easy creation of slide questions

o NEW! Team names are no longer case sensitive

o Help your students develop critical thinking skills

o Monitor responses to find out where your students are struggling

o Rely on real-time data to adjust your teaching strategy

o Automatically group students for discussion, teamwork, and peer-to-peer learning

·    Question Help. MyLab Finance homework and practice questions are correlated to the textbook, and generate algorithmically to give students unlimited opportunity for mastery of concepts. If students get stuck, Learning Aids including Help Me Solve This, View an Example, eText Pages, and a Financial Calculator walk them through the problem and identify helpful info in the text, giving them assistance when they need it most.

·    Financial Calculator. Students have access to a fully functional financial calculator inside MyLab Finance and a financial calculator app that they can download to their iPhone®, iPad®, or Android device.

·    Video Series. Conceptual videos on several topics that can be challenging for students to grasp, including Default Risk, Market Efficiency, Diversification, Mutual Fund Performance, and more are available for instructors to assign in the assignment manager, or for student self-study in the multimedia library.

·    Reporting Dashboard. View, analyze, and report learning outcomes clearly and easily, and get the information you need to keep your students on track throughout the course, with the new Reporting Dashboard. Available via the MyLab Finance Gradebook and fully mobile-ready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, visual manner.

·    Personalized Learning. Not every student learns the same way or at the same rate. With the growing need for acceleration through many courses, it's more important than ever to meet students where they learn. Personalized learning in MyLab Finance gives you the flexibility to incorporate the approach that best suits of your course and your students.

o The Study Plan acts as a tutor, providing personalized recommendations for each of your students based on his or her ability to master the learning objectives in your course. This allows students to focus their study time by pinpointing the precise areas they need to review, and allowing them to use customized practice and learning aids--such as videos, eText, tutorials, and more--to get them back on track. Using the report available in the Gradebook, you can then tailor course lectures to prioritize the content where students need the most support–offering you better insight into classroom and individual performance.

o Dynamic Study Modules help students study effectively on their own by continuously assessing their activity and performance in real time. Here's how it works: students complete a set of questions with a unique answer format that also asks them to indicate their confidence level. Questions repeat until the student can answer them all correctly and confidently. Once completed, Dynamic Study Modules explain the concept using materials from the text. These are available as graded assignments prior to class, and accessible on smartphones, tablets, and computers. NEW! Instructors can now remove questions from Dynamic Study Modules to better fit their course.

·    Learning Management System (LMS) Integration. Access assignments, rosters, and resources, and synchronize grades with your LMS Gradebook. For students, single sign-on provides access to all the personalized learning resources that make studying more efficient and effective.

·    Worked Out Solutions. Sometimes students need more than just the correct answer to understand their mistakes; they need to understand how to get to that correct answer. Worked Out Solutions will now be available to students when they are reviewing their submitted and graded homework. The Worked Out Solutions provide step-by-step explanations on how to solve the problem using the exact numbers and data that was presented to the student in the problem. Instructors will also have access to the Worked Out Solutions in preview and review mode.

·    UPDATED! HTML5 Player. In addition to matching the Flash player’s support of Accessibility requirements, the HTML5 player has a new “Show Work” feature to allow students to enter text either from a keyboard or stylus and to draw freehand on different backgrounds, such as a coordinate graph, with multiple fonts and colors. Students can also continue to upload images such as phone-photos of handwritten work. Printing enhancements include:

o a more pen-and-paper-friendly layout of exercises

o the ability for instructors to choose whether to print the header; to include an honor statement; and to print with answers in line, after each question, or on a separate sheet

New to this Edition

About the book

 

Getting the most out of the material. Essential Learning Aids help students understand concepts on a deeper level.

·    Finance for Life feature boxes provide parallel analysis of text discussions using real-world examples to frame key financial management concepts.

·    End-of-chapter problem sets help students evaluate their skills and knowledge with the most current and globally relevant financial management information.

·    Real examples and data incorporate actual companies’ case studies to reflect current conditions of the financial world.

 

Accessing the latest coverage. Students are kept up-to-date on the latest in the industry with new and expanded coverage of hot topics.

·    Discussions of major topics increase currency of content, reflecting the most recent changes in financial markets, interest rates, and international business. Reworked content makes the text more accessible to students, especially those with an aversion to mathematics.

·    Coverage of the impact of exchange rates gives students a deeper look at how changes affect the global market. A new section titled “What a Change in the Exchange Rate Means for Business” examines how exchange rate changes influence the profitability of multinational firms.

 

Also available with MyLab Finance

MyLab™ Finance is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts. 

·    Excel Projects. Using proven, field-tested technology, new auto-graded Excel Projects allow instructors to seamlessly integrate Excel content into their course without having to manually grade spreadsheets. Students have the opportunity to practice important Finance skills in the program, helping them to master key concepts and gain proficiency with Excel. Students simply download a spreadsheet, work live on a finance problem in Excel, and then upload that file back into MyLab Finance. Here, they receive reports on their work that provide personalized, detailed feedback to pinpoint where they went wrong on any step of the problem. These reports generate within minutes of submission.

·    Lecture Capture Videos. For extra review, Lecture Capture Videos walk students through concepts and problems at each checkpoint throughout the text. Students test their comprehension of key concepts using practice problems at checkpoints, and these videos help clear up any questions they may have, providing direction toward the solutions.

·    Learning Catalytics helps you generate class discussion, customize your lecture, and promote peer-to-peer learning with real-time analytics. As a student response tool, Learning Catalytics uses students’ smartphones, tablets, or laptops to engage them in more interactive tasks and thinking.

o NEW! Upload a full PowerPoint® deck for easy creation of slide questions

o NEW! Team names are no longer case sensitive

o Help your students develop critical thinking skills

o Monitor responses to find out where your students are struggling

o Rely on real-time data to adjust your teaching strategy

o Automatically group students for discussion, teamwork, and peer-to-peer learning

·    Personalized Learning. Not every student learns the same way or at the same rate. With the growing need for acceleration through many courses, it's more important than ever to meet students where they learn. Personalized learning in MyLab Finance gives you the flexibility to incorporate the approach that best suits of your course and your students.

o Dynamic Study Modules help students study effectively on their own by continuously assessing their activity and performance in real time. Here's how it works: students complete a set of questions with a unique answer format that also asks them to indicate their confidence level. Questions repeat until the student can answer them all correctly and confidently. Once completed, Dynamic Study Modules explain the concept using materials from the text. These are available as graded assignments prior to class, and accessible on smartphones, tablets, and computers. NEW! Instructors can now remove questions from Dynamic Study Modules to better fit their course.

·    HTML5 Player. In addition to matching the Flash player’s support of Accessibility requirements, the HTML5 player has a new “Show Work” feature to allow students to enter text either from a keyboard or stylus and to draw freehand on different backgrounds, such as a coordinate graph, with multiple fonts and colors. Students can also continue to upload images such as phone-photos of handwritten work. Printing enhancements include:

o a more pen-and-paper-friendly layout of exercises

o the ability for instructors to choose whether to print the header; to include an honor statement; and to print with answers in line, after each question, or on a separate sheet

Table of Contents

Part 1: Introduction to Financial Management

1. Getting Started—Principles of Finance

2. Firms and the Financial Markets

3. Understanding Financial Statements

4. Financial Analysis—Sizing Up Firm Performance

 

Part 2: Valuation of Financial Assets

5. The Time Value of Money—The Basics

6. The Time Value of Money—Annuities and Other Topics

7. An Introduction to Risk and Return—History of Financial Market Returns

8. Risk and Return—Capital Market Theory

9. Debt Valuation and Interest Rates

10. Stock Valuation

 

Part 3: Capital Budgeting

11. Investment Decision Criteria

12. Analyzing Project Cash Flows

13. Risk Analysis and Project Evaluation

14. The Cost of Capital

 

Part 4: Capital Structure and Dividend Policy

15. Capital Structure Policy

16. Dividend and Share Repurchase Policy

 

Part 5: Liquidity Management and Special Topics in Finance

17. Financial Forecasting and Planning

18. Working-Capital Management

19. International Business Finance

20. Corporate Risk Management

Author

SHERIDAN TITMAN holds the McAllister Centennial Chair in Financial Services at the University of Texas. He has a BS from the University of Colorado and an MS and PhD from Carnegie Mellon University. Prior to joining the faculty at the University of Texas, Professor Titman was a Professor at UCLA, the Hong Kong University of Science and Technology, and Boston College, and spent the 1988-1989 academic year in Washington, DC as the special assistant to the Assistant Secretary of the Treasury for Economic Policy. In addition, he has consulted for a variety of financial institutions and corporations. He has served on the editorial boards of the leading academic finance and real estate journals, was an editor of the Review of Financial Studies, and was the founding editor of the International Review of Finance. Titman has served as both Presidents and Vice Presidents of the American Finance Association and the Western Finance Association and has served as a director of the American Finance Association, the Asia Pacific Finance Association, the Western Finance Association, and the Financial Management Association. He has published more than 50 articles in both academic and professional journals and has co-authored two additional books, Financial Markets and Corporate Strategy, and Valuation. He has received a number of awards for his research excellence and is a Fellow of the Financial Management Association and a Research Associate of the National Bureau of Economic Research.

Sheridan and Meg live with their three sons and dog (Mango) in Austin, Texas.

 

ARTHUR J. KEOWN is the R. B. Pamplin Professor of Finance and Finance Department Head at Virginia Polytechnic Institute and State University. He received his bachelor's degree from Ohio Wesleyan University, his MBA from the University of Michigan  and his doctorate from Indiana University. An award-winning teacher, he is a member of the Academy of Teaching Excellence at Virginia Tech, and he has received five certificates of Teaching Excellence, the W.E. Wine Award for Teaching Excellence, and the Alumni Teaching Excellence Award. In 1999, he received the Outstanding Faculty Award from the State of Virginia. Professor Keown is widely published in academic journals. His work has appeared in the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Journal of Financial Research, Journal of Banking and Finance, Financial Management, Journal of Portfolio Management, and many others. Two of his books are widely used in college finance classes all over the country—Foundations of Finance: The Logic and Practice of Financial Management and Personal Finance, Turning Money into Wealth. Professor Keown is a Fellow of Decision Sciences Institute and head of the Finance Department. In addition, he has served as the co-editor of both the Journal of Financial Research and the Financial Management Association's Survey and Synthesis Series. He was recently inducted into Ohio Wesleyan's Hall of Fame for wrestling. His daughter and son are both married and live in Madison, Wisconsin, and Dubai, while he and his wife live in Blacksburg, Virginia, where he collects original art from Mad Magazine.