For the introductory finance course—undergraduate corporate finance or financial management—required at all undergraduate business schools.
Get the picture and develop a fundamental understanding of finance.
Students often miss the big picture, viewing finance as a set of unrelated topics, tools, and techniques. In order to help students see the big picture, this text provides an introduction to financial decision-making that links the concepts to five key principles of finance.
Authors Arthur J. Keown, John D. Martin, and Sheridan Titman have incorporated significant revisions that weave currency, relevance, and real-world issues into the pages of this well-know finance text.
Key Features
- A five-step problem-solving technique is used in fully worked-out examples called Checkpoints. These Checkpoints give students an opportunity to pause and test their comprehension of the key quantitative concepts as they are presented. The fifth step is a worked example, followed by a practice problem (“Check Yourself”) for students to try out a similar problem on their own.
- The feature box “The Business of Life” links important finance concepts to personal finance matters of high interest to students.
- The feature box “Regardless of Your Major” brings in examples from other majors in the business school so that students can see the applicability of finance topics to their own chosen professions.
- The feature box “Finance in a Flat World” highlights international examples of corporate finance concepts.
- “Tools of Financial Analysis” boxes are provided throughout the text that “Name the
- Tool "provide the "Formula," and then tell the student “What It Tells You.”
New to This Edition
- NEW! A Fifth Principle has been added. “Principle 5: Individuals Respond to Incentives.” This principle looks at the power of incentives and the conflict of interest between the firm’s managers and its stockholders. This principle appears repeatedly throughout the book, bringing the student’s attention back to this problem and how it can be solved.
- NEW! “Tools of Financial Analysis.” A new box feature has been introduced that provides the student reader with a quick reference source for the decision tools used in financial analysis. This new box feature appears throughout the book and names the calculation or formula, then displays it, and summarizes what it tells you.
- NEW! Expanded coverage of the ongoing world financial crisis. Chapter 2 provides extensive coverage of the financial crisis that began in 2007, its causes, and where we stand today, linking this discussion to the Principles of Finance.
- NEW! Expanded problem set. Focusing on chapters with high problem usage, the problem sets have been strategically expanded to provide better problem choices to the Professor.
- NEW! Expanded coverage of interest rates and the yield curve. Chapter 9 now contains a new section on “The Shape of the Yield Curve” to help the student better understand how the yield curve is impacted by the inflation premium and maturity-risk premium during times of increasing and decreasing inflation. Much of this discussion uses a graphical approach.
- NEW! Greatly expanded coverage of investment banking. The role and functions of the investment banker are now presented in a much more complete manner, providing the student with an understanding of the role of the investment banker plays in the fund raising process.
- NEW! Expanded use of real-world examples. We provide ticker symbols in parentheses following the names of real companies throughout the text. This makes it possible for students to easily identify when the example deals with an actual company.
Contents
Part 1: Introduction to Financial Management
- Chapter 1: Getting Started - Principles of Finance
- Chapter 2: Firms and the Financial Market
- Chapter 3: Understanding Financial Statements, Taxes, and Cash Flows
- Chapter 4: Financial Analysis - Sizing Up Firm Performance
Part 2: Valuation of Financial Assets
- Chapter 5: Time Value of Money - The Basics
- Chapter 6: The Time Value of Money - Annuities and Other Topics
- Chapter 7: An Introduction to Risk and Return - History of Financial Market Returns
- Chapter 8: Risk and Return - Capital Market Theory
- Chapter 9: Debt Valuation and Interest Rates
- Chapter 10: Stock Valuation
Part 3: Capital Budgeting
- Chapter 11: Investment Decision Criteria
- Chapter 12: Analyzing Project Cash Flows
- Chapter 13: Risk Analysis and Project Evaluation
- Chapter 14: The Cost of Capital
Part 4: Capital Structure & Dividend Policy
- Chapter 15: Capital Structure Policy
- Chapter 16: Dividend Policy
Part 5: Liquidity Management & Special Topics in Finance
- Chapter 17: Financial Forecasting and Planning
- Chapter 18: Working Capital Management
- Chapter 19: International Business Finance
- Chapter 20: Corporate Risk Management
About the Authors
- SHERIDAN TITMAN holds the McAllister Centennial Chair in Financial Services at the University of Texas. He has a B. S. from the University of Colorado and an M.S. and Ph.D. 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, D.C. 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.
- 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-wining 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.
- JOHN MARTIN holds the Carr B. Collins Chair in Finance in the Hankamer School of Business at Baylor University, where he has received multiple best teacher awards in the Baylor Executive MBA program. Prior to moving to Baylor Professor Martin was the Margaret and Eugene McDermott Professor of Finance at the University of Texas at Austin.
Book Details
- Hardcover: 720 pages
- Publisher: Prentice Hall; United States ed of 12th revised ed edition (c2014)
- Language: English
- ISBN-10: 0133423824
- ISBN-13: 978-0133423822
- Product Dimensions: 9.1 x 6.6 x 1.1 inches
- List Price: $261.80