Gain the understanding of today's financial markets and corporate financial management you need to propel you toward your goals with the contemporary insights and innovative learning tools found in Brigham/Houston's popular FUNDAMENTALS OF FINANCIAL MANAGEMENT, 16E. This longtime market leader offers intriguing insights into the social responsibility of business, the significant effects of recent changes in corporate tax code, the ongoing multiple effects related to the economic impact of the coronavirus pandemic and other emerging issues straight from today's headlines. Clear explanations and real, meaningful examples help you understand the "what" and the "why" of corporate budgeting, financing, working capital decision making, forecasting, valuation and Time Value of Money. Hands-on exercises, cases, Excel® spreadsheet models and interactive MindTap digital activities and learning modules guide you in putting the theory you learn into action.
Part 1: Introduction to Financial Management
Chapter 1 An Overview of Financial Management
Chapter 2 Financial Markets and Institutions
Part 2: Fundamental Concepts in Financial Management
Chapter 3 Financial Statements, Cash Flow, and Taxes
Chapter 4 Analysis of Financial Statements
Web Appendix 4A Common Size and Percent Change Analysis
Chapter 5 Time Value of Money
Web Appendix 5A Continuous Compounding and Discounting
Web Appendix 5B Growing Annuities
Part 3: Financial Assets
Chapter 6 Interest Rates
Chapter 7 Bonds and Their Valuation
Web Appendix 7A Zero Coupon Bonds
Web Appendix 7B Bond Risk and Duration
Web Appendix 7C Bankruptcy and Reorganization
Chapter 8 Risk and Rates of Return
Web Appendix 8A Calculating Beta Coefficients
Chapter 9 Stocks and Their Valuation
Appendix 9A Stock Market Equilibrium
Part 4: Investing in Long-Term Assets: Capital Budgeting
Chapter 10 The Cost of Capital
Web Appendix 10A The Cost of New Common Stock and WACC
Chapter 11 The Basics of Capital Budgeting
Chapter 12 Cash Flow Estimation and Risk Analysis
Web Appendix 12A Tax Depreciation
Web Appendix 12B Refunding Operations
Web Appendix 12C Using the CAPM to Estimate the Risk-Adjusted Cost of Capital
Web Appendix 12D Techniques for Measuring Beta Risk
Chapter 13 Real Options and Other Topics in Capital Budgeting
Part 5: Capital Structure and Dividend Policy
Chapter 14 Capital Structure and Leverage
Web Appendix 14A Degree of Leverage
Chapter 15 Distributions to Shareholders: Dividends and Share Repurchases
Web Appendix 15A The Residual Dividend Model: An Example
Part 6: Working Capital Management, Financial Forecasting, and Multinational Financial Management
Chapter 16 Working Capital Management
Web Appendix 16A Inventory Management
Web Appendix 16B Short-Term Loans and Bank Financing
Chapter 17 Financial Planning and Forecasting
Web Appendix 17B Forecasting Financial Requirements When Financial Ratios Change
Chapter 18 Multinational Financial Management
Part 7: Special Topics in Financial Management
Chapter 19 Derivatives and Risk Management
Web Appendix 19A Valuation of Put Options
Chapter 20 Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles
Chapter 21 Mergers and Acquisitions
Web Appendix 21A Merger Regulation
Web Appendix 21B Holding Companies
Appendix A Solutions to Self-Test Questions and Problems
Appendix B Answers to Selected End-of-Chapter Problems
Appendix C Selected Equations and Tables
Eugene F. Brigham
Dr. Eugene F. Brigham is graduate research professor emeritus at the University of Florida, where he has taught since 1971. He received his M.B.A. and Ph.D. from the University of California-Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin and the University of California-Los Angeles. A former president of the Financial Management Association, he has written many journal articles on the cost of capital, capital structure and other aspects of financial management. He has authored or co-authored 10 textbooks on managerial finance and managerial economics that are used at more than 1,000 universities in the United States and have been translated into 11 languages worldwide. In addition to his academic writing, Dr. Brigham continues to teach, consult and complete research. He has served as a consultant to many corporations and government agencies, including the Federal Reserve Board, the Federal Home Loan Bank Board, the U.S. Office of Telecommunications Policy and the RAND Corp. He has also testified as an expert witness in numerous electric, gas and telephone rate cases at both federal and state levels. Dr. Brigham spends his spare time on the golf course, enjoying time with his family and dogs and tackling outdoor adventure activities, such as biking through Alaska.
Joel F. Houston
Dr. Joel F. Houston is the Eugene F. Brigham Professor of Finance at the University of Florida. He received his M.A. and Ph.D. from the Wharton School at the University of Pennsylvania and his undergraduate degree from Franklin and Marshall College. Prior to his appointment at the University of Florida, Dr. Houston was an economist at the Federal Reserve Bank of Philadelphia. Dr. Houston's research is primarily in the areas of corporate finance and financial institutions. His work has been published in top journals including The Journal of Finance, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Accounting Research and Financial Management. Dr. Houston also currently serves as an associate editor for the Journal of Financial Services Research and the Journal of Financial Economic Policy. Since arriving at the University of Florida in 1987, Dr. Houston has received more than 25 teaching awards and has been actively involved in both undergraduate and graduate education. In addition to co-authoring leading textbooks in financial management, Dr. Houston has participated in management education programs for the PURC/World Bank Program, Southern Company, Exelon Corporation and Volume Services America. He enjoys playing golf and spending time with his wife (Sherry), son (Chris), daughter (Meredith) and grandson (Teddy). He is an avid sports fan who follows the Florida Gators as well as the Pittsburgh Steelers, Pirates and Penguins.
NEW "LEARN IT" MODULES HELP STUDENTS MASTER FUNDAMENTAL TOPICS. These multi-stage, fully algorithmic learning modules in MindTap, provide step-by-step practice. Mini-modules separate instructional narrative into small chunks of information with accompanying videos and practice exercises that offer immediate feedback. Students answer a series of questions at each step to ensure conceptual understanding. These modules can be used with reading assignments or serve as pre-class activities to reinforce foundational knowledge before completing more complex homework or application-oriented problems.
NEW ALGORITHMIC TESTING IN MINDTAP OFFERS MORE THAN 600 TEST BANK QUESTIONS. A wealth of questions provides flexibility and variety in testing with reliable support for online exams or important assignments. Each question provides a complete solution that shows full, step-by-step calculations. In addition, eBook links now appear in "Hints" within end-of-chapter problems so questions can easily be added to exams without the links, if desired.
UPDATED MINDTAP LEARNING PATH IS NOW OPTIMIZED AND STREAMLINED. New "Learn It," "Study It" and "Apply It" sections lead students to group learning activities, video and other interactive assignments and study materials. This reorganization better reflects the intended progression of learning for each chapter unit and ensures consistency with MindTap resources used in other courses the student may be taking. Many activities and homework descriptions now display an estimated completion time to make it easier for you to select assignments.
AUTO-GRADED EXCEL® PROBLEMS IN MINDTAP OFFER VALUABLE HANDS-ON PRACTICE. Selected end-of-chapter problems are now converted to an Excel Online worksheet, giving students hands-on practice working with problems that use Excel formulas and functions. This enhances student knowledge of Excel while demonstrating Excel's importance as a tool in financial management today. In addition, new Comprehensive Excel Case problems encourage deeper analysis, often using "what-if" scenarios to help strengthen your students' decision-making and analytical skills.
REVISED TABLE OF CONTENTS HAS FLIPPED PREVIOUS CHAPTERS 18 AND 19 FOR CONSISTENCY. With the rearranged order, Chapter 18 now covers multinational financial management, while Chapter 19 addresses derivatives and financial management. With this change the first 18 chapters of the Fundamentals and Concise versions of this edition are now identical. The Fundamentals edition includes three additional chapters (Chs. 19-21).
CORPORATE TAX UPDATES ADDRESS RECENT SIGNIFICANT CHANGES. This edition discusses both recent changes in corporate tax code and the impact of those changes in numerous other areas of corporate finance. The authors have carefully updated the many chapters and corresponding problems that these considerable changes affect.
NEW CONTENT DETAILS THE ECONOMIC AND FINANCIAL IMPACTS OF THE CORONAVIRUS PANDEMIC. The latest updates in this edition discuss various issues that have risen as a result of the economic and financial impact of the COVID-19 pandemic.
NEW COURSE PREPAREDNESS TOOLS HELP STUDENTS SUCCEED IN YOUR COURSE. A new "Are You Ready for Corporate Finance?" learning feature offers targeted practice and immediate feedback to refresh your students' knowledge of fundamental topics. In addition, "Preparing for Finance" tutorials ensure students confront and overcome any deficiencies in prerequisite math, accounting, economics and statistics. Tutorials for using various financial calculators and Excel® are also included. These resources are available in MindTap.
MINDTAP FINANCE FOR THIS EDITION CUSTOMIZES LEARNING FOR EACH STUDENT. This digital learning solution powers students from memorization to mastery with content that is specific to this edition of the book and tailored to each student's learning needs. The new optimized learning path offers carefully developed focused content and interactive activities. MindTap resources give you complete control of your course, with the option to customize content to challenge every individual and to build each student's confidence.
UPDATED EXCEL® MODELS PARALLEL AND SUPPORT DISCUSSIONS OF EACH TOPIC. In a continuing effort to help students know and use Excel® to problem-solve, the authors have updated this edition's spreadsheet models to seamlessly support revised discussion of each topic. In addition, in-text graphics quickly show students how many of the problems can be solved using Excel®.
FOCUSED SELF-TEST PROBLEMS ENSURING UNDERSTANDING AS STUDENTS PROGRESS THROUGH EACH CHAPTER. These strategically placed Self-Test Problems appear directly after each major chapter section and enable students to test their comprehension immediately before moving to the next topic -- instead of waiting until the conclusion of the chapter.
"TAKING A CLOSER LOOK" PROBLEMS HAVE STUDENTS EXAMINE AN ACTUAL COMPANY'S FINANCIAL INFORMATION. These hands-on exercises enable students to apply chapter concepts to real-world situations using online resources. This practice gives students a better understanding of how to gather the information needed to perform the applicable analysis.
COMPLETE INSTRUCTOR RESOURCES REDUCE PREPARATION WHILE INCREASING STUDENT SUCCESS. This edition's comprehensive support package is prepared by the text's authors to ensure the highest quality and accuracy. All supplements correspond closely with the book and recent updates to maximize your preparation time and student engagement.
INTERACTIVE EXERCISES HELP STUDENTS VISUALIZE CONCEPTS. "Exploring Finance" features in MindTap use graphical representations, or "applets," to enhance student knowledge. Each applet includes three to five questions that require students to manipulate a graph. In order to answer a series of questions, the student may need to adjust the "slider" for changing information such as number of periods, interest rates or payments. These activities reinforce financial concepts by involving students in an interactive exercise to arrive at the solution.
"QUICK QUESTIONS" BOXES POSE THOUGHT-PROVOKING QUESTIONS AT KEY POINTS IN DISCUSSION. These insightful exercises, found in key chapters throughout the book, present a relevant question and then walk students through the process of finding its solution. The authors designed these questions to parallel the classroom activity in which students progress through an example to make concepts more concrete.
EXPANDED REAL-WORLD EXAMPLES HELP STUDENTS BRIDGE THE GAP BETWEEN CONCEPT AND APPLICATION. This edition is packed with real-life examples, such as a broader discussion of the role of hedge funds and private equity of major firms and a detailed breakdown of the cash conversion cycle components for several leading companies. This edition also reviews a weighted average cost of capital analysis for selected companies and extensive updates of corporate bond ratings, yields and dividend payouts for a range of companies.
REVISED AND IMPROVED POWERPOINT PRESENTATIONS ARE MORE ENGAGING THAN EVER. This edition's accompanying PowerPoint presentations are completely revised to support an engaging classroom environment. All slides present the latest content, updated to reflect all changes and additions to this edition of the text.
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