Foundations of Finance: The Logic and Practice of Financial Management

by Keown, Arthur J.; Martin, John D.; Petty, J. William; Scott, David F., Jr.

• ISBN13: 9780130423313
• ISBN10: 0130423319
• Edition: 3rd
• Format: Hardcover
• Copyright: 2001-03-01
• Publisher: Prentice Hall

Summary

This introduction to finance provides a conceptual understanding of the financial decision-making process — rather than just an introduction to the tools and techniques of finance — and focuses on the interrelationships among the topics covered. It explores the “big picture” and actual practice — i.e., financial decision making rooted in current financial theory and in the current state of world economic conditions. Chapter topics include financial markets and interest rates; understanding financial statements and cash flows; evaluating a firm's financial performance; financial forecasting, planning, and budgeting; the time value of money; valuation and characteristics of bonds and stocks; the meaning and measurement of risk and return; the cost of capital; dividend policy and internal financing; working-capital management; liquid asset management; and international business finance. For financial managers and others involved in corporate financial decisions — and for individuals interested in an education in finance, and the logic that drives it.

Table of Contents

About the Authors	xvi
Preface	xxvii
An Introduction to the Foundations of Financial Management---The Ties That Bind	1	(30)
The Financial Markets and Interest Rates	31	(44)
Understanding Financial Statements and Cash Flows	75	(32)
Evaluating a Firm's Financial Performance	107	(32)
Financial Forecasting, Planning, and Budgeting	139	(28)
The Time Value of Money	167	(34)
Valuation and Characteristics of Bonds	201	(28)
Valuation and Characteristics of Stock	229	(24)
The Meaning and Measurement of Risk and Return	253	(36)
Capital-Budgeting Techniques and Practice	289	(38)
Cash Flows and Other Topics in Capital Budgeting	327	(34)
Cost of Capital	361	(38)
Determining the Financing Mix	399	(52)
Dividend Policy and Internal Financing	451	(34)
Introduction to Working-Capital Management	485	(26)
Liquid Asset Management	511	(46)
International Business Finance	557	(556)
Appendixes	1	(1)
Appendix A: Using a Calculator	1	(1)
Appendix B: Compound Sum of $1	1	(1)
Appendix C: Present Value of $1	1	(1)
Appendix D: Sum of an Annuity of $1 for n Periods	1	(1)
Appendix E: Present Value of an Annuity of $1 for n Periods	1	(1)
Appendix F: Check Figures for Selected End-of-Chapter Study Problems	1	(1)
Glossary	1	(1)
Index	1