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Fundamentals of Financial Management
When Fundamentals of Financial Management was first published more than 20 years ago. our intent was to write an introductory finance text that students could truly understand. Today. 20 years later. Fundamentals has become the leading undergraduate finance text. Our goal with the eighth edition has been to produce a book and ancillary package that holds its position and sets yet another new standard for finance textbooks.
As teachers and authors. we have always tried to incorporate current innovations in the fields of finance. education. and publishing into Fundamentals and its related ancillaries. The eighth edition's new look and new ancillary items provide the most complete and integrated teaching system available. Of course. our commitment to quality. accuracy. and student accessibility remains as strong as ever.
Finance is an exciting. challenging. and ever-changing discipline. In developing and improving Fundamentals. we strive to convey the excitement and ever-changing nature of finance. and most students do quickly realize its importance and relevance. More often than not. students are pleased and surprised to discover that finance is more interesting and exciting than they had anticipated Nevertheless. finance remains a difficult subject for many students. and we kept this in mind as we developed the text and supporting materials. Without sacrificing rigor. we try to explain each topic clearly and completely. However. an introductory finance course should be more than just a series of topics ? to fully understand the basic financial concepts. students must understand how the various topics fit together.
With this in mind. we begin Fundamentals with a discussion of financial ob-jectives. and we show how both managers and investors use accounting statements to assess how well firms are meeting those objectives. We also describe early on the financial environment. the fundamental trade-off between risk and return. and the time value of money. We build on these basic concepts to develop the principles of security valuation and to explain how prices and rates are established in the stock and bond markets. Subsequent chapters explain how financial tools and techniques can be used to help firms maximize value by improving decisions relating to capital budgeting. capital structure. and working capital management. The final part of the book deals with a number of related
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