Financial Management: Theory & Practice / Edition 13

by Eugene F. Brigham, Michael C. Ehrhardt

Overview

Empowering you for success, Brigham/Ehrhardt s FINANCIAL MANAGEMENT: THEORY AND PRACTICE, 16th edition, equips you with a solid understanding of key theoretical concepts along with practical tools to make effective financial decisions. It emphasizes corporate valuation and its relevance to financial decisions to ensure you see the details as well as the big picture. Chapters connect concepts, value and tools—usually within a fully integrated Excel model that can be applied to situations you may face on the job. Topics expand from fundamentals to strategic finance, linking recent events to the role of finance in business and your personal life. The MindTap Finance digital learning solution is also available. With its relevant and engaging presentation, numerous examples and emphasis on Excel applications, this text provides a comprehensive resource for your academic and business career.

Product Details

ISBN-13:	9781439078099
Publisher:	Cengage Learning
Publication date:	03/03/2010
Series:	Available Titles CengageNOW Series
Edition description:	(with Thomson ONE - Business School Edition 1-Year Printed Access Card)
Pages:	1184
Sales rank:	810,522
Product dimensions:	10.44(w) x 11.08(h) x 1.59(d)

About the Author

Dr. Eugene F. Brigham is a 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.


Dr. Michael C. Ehrhardt is a professor emeritus at the University of Tennessee. He received a B.S. in civil engineering and a B.A. in economics at Swarthmore College. After earning an M.S. in industrial management from the Georgia Institute of Technology, he worked several years as an engineer. He returned to Georgia Tech and graduated with an M.S. in operations research and Ph.D. in finance. Dr. Ehrhardt has taught extensively at the undergraduate, master's and doctoral levels in the areas of investments, corporate finance and capital markets. He has directed and served on numerous dissertation committees. Dr. Ehrhardt consults in the areas of corporate valuation, value-based compensation plans and the cost of capital. His honors include the Allen G. Keally Outstanding Teacher Award, the Tennessee Organization of M.B.A. Students Outstanding Faculty Award, the College of Business Administration Research & Teaching Award and the John B. Ross Outstanding Teaching Award in the College of Business. An author and co-author of several leading books addressing various areas of finance, Dr. Ehrhardt s interests include corporate valuation and asset pricing models, including pricing models for interest-rate sensitive instruments. His work has been published in numerous journals, including The Journal of Finance, Journal of Financial and Quantitative Analysis, Financial Management, The Financial Review, The Journal of Financial Research and The Journal of Banking and Finance.

Table of Contents

PART 1 THE COMPANY AND ITS ENVIRONMENT CHAPTER 1 An Overview of Financial Management and the Financial Environment Web Extension 1A: An Overview of Derivatives CHAPTER 2 Financial Statements, Cash Flow, and Taxes Web Extension 2A: The Federal Income Tax System for Individuals CHAPTER 3 Analysis of Financial Statements PART 2 FIXED INCOME SECURITIES CHAPTER 4 Time Value of Money Web Extension 4A: Derivation of Annuity Formulas Web Extension 4B: Continuous Compounding CHAPTER 5 Bond, Bond Valuation, and Interest Rates Web Extension 5A: A Closer Look at Zero Coupon and Other OID Bonds Web Extension 5B: A Closer Look at TIPS: Treasury Inflation-Protected Securities Web Extension 5C: A Closer Look at Bond Risk: Duration Web Extension 5D: The Pure Expectations Theory and Estimation of Forward Rates PART 3 STOCKS AND OPTIONS CHAPTER 6 Risk and Return Web Extension 6A: Continuous Probability Distributions Web Extension 6B: Estimating Beta with a Financial Calculator CHAPTER 7 Corporate Valuation and Stock Valuation Web Extension 7A: Derivation of Valuation Equations CHAPTER 8 Financial Options and Applications in Corporate Finance PART 4 PROJECTS AND THEIR VALUATION CHAPTER 9 The Cost of Capital Web Extension 9A: The Cost of Equity in the Nonconstant Dividend Growth Model with Repurchases CHAPTER 10 The Basics of Capital Budgeting: Evaluating Cash Flows Web Extension 10A: The Accounting Rate of Return (ARR) CHAPTER 11 Cash Flow Estimation and Risk Analysis Web Extension 11A: Certainty Equivalents and Risk- Adjusted Discount Rates PART 5 CORPORATE VALUATION AND GOVERNANCE CHAPTER 12 Corporate Valuation and Financial Planning CHAPTER 13 Corporate Governance PART 6 CASH DISTRIBUTIONS AND CAPITAL STRUCTURE CHAPTER 14 Distributions to Shareholders: Dividends and Repurchases CHAPTER 15 Capital Structure Decisions Web Extension 15A: Degree of Leverage Web Extension 15B: Capital Structure Theory: Arbitrage Proofs of the Modigliani-Miller Theorems PART 7 MANAGING GLOBAL OPERATIONS CHAPTER 16 Supply Chains and Working Capital Management Web Extension 16A: Secured Short-Term Financing CHAPTER 17 Multinational Financial Management PART 8 TACTICAL FINANCING DECISIONS CHAPTER 18 Public and Private Financing: Initial Offerings, Seasoned Offerings, and Investment Banks Web Extension 18A: Rights Offerings CHAPTER 19 Lease Financing Web Extension 19A: Leasing Feedback Web Extension 19B: Percentage Cost Analysis Web Extension 19C: Leveraged Leases CHAPTER 20 Hybrid Financing: Preferred Stock, Warrants, and Convertibles Web Extension 20A: Calling Convertible Issues PART 9 STRATEGIC FINANCE IN A DYNAMIC ENVIRONMENT CHAPTER 21 Dynamic Capital Structures and Corporate Valuation Web Extension 21A: Projecting Consistent Debt and Interest Expenses CHAPTER 22 Mergers and Corporate Control CHAPTER 23 Enterprise Risk Management CHAPTER 24 Bankruptcy, Reorganization, and Liquidation Web Extension 24A: Multiple Discriminant Analysis PART 10 SPECIAL TOPICS CHAPTER 25 Portfolio Theory and Asset Pricing Models CHAPTER 26 Real Options 1 Web Extension 26A: The Abandonment Real Option Web Extension 26B: Risk-Neutral Valuation APPENDIXES APPENDIX A Solutions to Self-Test Problems APPENDIX B Answers to End-of-Chapter Problems APPENDIX C Selected Equations GLOSSARY AND INDEXES Glossary Name Index Subject Index WEB CHAPTERS: CHAPTER 27 Providing and Obtaining Credit CHAPTER 28 Advanced Issues in Cash Management and Inventory Control CHAPTER 29 Pension Plan Management CHAPTER 30 Financial Management in Not-for-Profit Businesses