Foundations of Finance

Foundations of Finance retains its foundational approach to the key concepts of finance, bolstered by real-world vignettes, cases, and problem exercises.

This course focuses on valuation and opens every chapter with a vignette based on financial decisions faced by contemporary, real-world companies and firms. Students will be well equipped to effectively deal with financial problems in an ever-changing financial environment.

PART I: THE SCOPE AND ENVIRONMENT OF FINANCIAL MANAGEMENT

1. An Introduction to the Foundations of Financial Management

2. The Financial Markets and Interest Rates

3. Understanding Financial Statements and Cash Flows

4. Evaluating a Firm’s Financial Performance

PART II: THE VALUATION OF FINANCIAL ASSETS

5. The Time Value of Money

6. The Meaning and Measurement of Risk and Return

7. The Valuation and Characteristics of Bonds

8. The Valuation and Characteristics of Stock

9. The Cost of Capital

PART III: INVESTMENT IN LONG-TERM ASSETS

10. Capital-Budgeting Techniques and Practice

11. Cash Flows and Other Topics in Capital Budgeting

PART IV: CAPITAL STRUCTURE AND DIVIDEND POLICY

12. Determining the Financing Mix

13. Dividend Policy and Internal Financing

PART V: WORKING-CAPITAL MANAGEMENT AND INTERNATIONAL BUSINESS FINANCE

14. Short-Term Financial Planning

15. Working-Capital Management

16. International Business Finance

17. Cash, Receivables, and Inventory Management