Part 1: Fundamental Concepts and Basic Tools of Finance
Chapter 1: Financial Management
Chapter 2: Financial Statements
Chapter 3: The Time Value of Money (Part 1)
Chapter 4: The Time Value of Money (Part 2)
Chapter 5: Interest Rates Part 2: Valuing Stocks and Bonds and Understanding Risk and Return
Chapter 6: Bonds and Bond Valuation
Chapter 7: Stocks and Stock Valuation
Chapter 8: Risk and Return Part 3: Capital Budgeting
Chapter 9: Capital Budgeting Decision Models
Chapter 10: Cash Flow Estimation
Chapter 11: The Cost of Capital Part 4: Financial Planning and Evaluating Performance
Chapter 12: Forecasting and Short-Term Financial Planning
Chapter 13: Working Capital Management
Chapter 14: Financial Ratios and Firm Performance Part 5: Other Selected Finance Topics
Chapter 15: Raising Capital
Chapter 16: Capital Structure
Chapter 17: Dividends, Dividend Policy, and Stock Splits
Chapter 18: International Financial Management
Appendix 1: Future Value Interest Factors
Appendix 2: Present Value Interest Factors
Appendix 3: Future Value Interest Factors of an Annuity
Appendix 4: Present Value Interest Factors of an Annuity
Appendix 5: Answers to Prepping for Exam Questions
NEW! The material on the financial statements in Chapter 2 has been strengthened, adding a connection between the Statement of Cash Flows and other financial statements.
NEW! A discussion has been added on yield curves in Chapter 5 to help students understand the maturity premium on a macroeconomic scale.
New advanced spreadsheet problems are featured at the end of each chapter for more flexibility in assigning problems for individuals or teams.
Updated material and additional insights based on the feedback of students, reviewers, and adopters has been added to this edition.
For students taking an undergraduate corporate finance or financial management course.
You've got the know-how. We've got the how-to.
Brooks uses a tools-based approach that presents the key concepts of finance (or “tools”) early on in the text, followed by an application of those concepts to various finance problems. By introducing key finance concepts with personal and business-related finance examples, this text helps students understand how the tools of finance can help them in any career or business situation.
This edition features strengthened material on financial statements, a discussion on yield curves, new and advanced spreadsheet problems, and updated material.A Tools-first Approach to Success.
Brooks’ tools-first approach enables students to develop time value of money (TVM) concepts, rates of return, and interest rates early on in the course. By presenting these tools early on, students develop confidence as they begin to grapple financial questions of increasing complexity. Overall, this approach gives students a cumulative mastery of the tools of finance from the beginning of the text so they can be successful throughout their finance courses.Personal Finance Experience.
Brooks often begins a finance concept with a personal example before moving to a corporate example. The idea behind presenting personal finance examples first is to show that the same concepts in simple, personal finance problems are also in more complicated corporate finance problems. For example, lottery tickets motivate the discussion of annuity streams, and choosing a personal investment portfolio is shown to be similar to choosing the projects of a corporation. Three-pronged Approach to Problem Solving.
Brooks uses a three-pronged approach to problem solving in many of this text’s worked examples. By systematically using all three methods—calculator, excel, and formulas—together in the early chapters, this text shows students that there are three paths to help them get to the same solution.Tear-out Summary Cards
for each chapter provide portable reviews for the student. These summary cards are great resources for exam prep and include key equations, notation from the chapter, calculator keys, and excel variables.“Putting Finance to Work”
demonstrates the relevance of finance to careers in many fields, such as insurance, accounting, real estate, information technology, law, and others. These career snapshots take the discussed finance topics and show how they have meaning to various disciplines.Finance Follies
offer up some fascinating stories of “finance gone bad,” such as the financial implosion of 2008, Bernie Madoff, Big Dig budgetary overruns, over-exuberant investing in the Dutch Tulip Mania and tech bubble, cooking the books at Enron, and more. Mini-Cases
at the end of each chapter show how the chapter concepts are relevant to all kinds of business situations and firms. All cases have a series of questions for the student to answer.
Focus on Finance.
The placement of financial statement analysis later in the book (Chapter 14) reinforces the idea that the class is about finance and not about accounting. However, financial statements and the basic concept of cash flow identity are introduced in Chapter 2 as a review for those who need it.