Cengage Learning

Higher Education

Financial Management: Theory & Practice, 13th Edition

  • includes Thomson ONE - Business School Edition 1-Year Printed Access Card
  • Eugene F. Brigham University of Florida
  • Michael C. Ehrhardt University of Tennessee
  • ISBN-10: 1439078092  |  ISBN-13: 9781439078099
  • 1184 Pages
  • Previous Editions: 2008, 2005
  • © 2011 | Published
  • Newer Edition Available
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Give future and current managers a thorough understanding of the financial theory that is essential for developing and implementing effective financial strategies in business today. Brigham/Ehrhardt’s leading FINANCIAL MANAGEMENT: THEORY AND PRACTICE, 13E is the only text that presents a striking balance between solid financial theory and practical applications. Your students gain a strong working knowledge of today’s financial environment as this edition examines recent financial crises; the global economic crisis; and role of finance in the world, business, and your students’ personal lives. This book’s relevant and engaging presentation, numerous examples, and emphasis on using Excel spreadsheets prepare students to make sound financial decisions in business. The book progresses from an early presentation of fundamentals to specific techniques and discussions that guide students in maximizing the value of a firm. This text is not only the ideal choice for today’s introductory MBA course, but also serves as a complete reference tool for students throughout their academic and business careers. Integrated practice using Thomson ONE-Business School Edition gives students hands-on experience with the same research tool Wall Street professionals use daily. The book’s comprehensive support, including best-selling Aplia Finance for homework management and numerous online resources, helps you establish the strong financial foundation and skills students need for long-term business success.

Features and Benefits

  • UNMATCHED AUTHOR EXPERTISE ENSURES CLEAR, CONTEMPORARY APPROACH. This premier authorship team combines the extensive teaching background and more than 30 years of text writing experience of Dr. Gene Brigham with the contemporary scholarship and practical, professional expertise of Dr. Mike Ehrhardt. Together, these authors deliver a consistent, accurate and innovative approach that will keep your students first in finance.
  • PRACTICAL APPLICATION OF THEORY AND TRENDS HIGHLIGHTS THE ROLE OF FINANCE TODAY. The authors clearly illustrate the application of concepts and theories throughout the book’s proven presentation, wealth of actual business examples, thought-provoking problem sets, and integrated mini-cases. Comprehensive mini-cases at the end of each chapter further demonstrate applications with corresponding PowerPoint slides and spreadsheets as well as solutions on the Instructor’s password-protected web site.
  • MULTI-DISCIPLINARY APPROACH DEMONSTRATES HOW FINANCE AFFECTS ALL AREAS OF BUSINESS. The authors interweave various subjects throughout the text discussion to clearly demonstrate how business impacts finance and how all areas of business are affected by finance.
  • EARLY COVERAGE OF FINANCIAL STATEMENTS ESTABLISHES A STRONG CONTEXT FOR CONCEPTS THAT FOLLOW. Presenting financial statements early within the text provides a clear picture of what financial management is all about. Students understand how the effects of financial decisions are shared throughout the firm. Early introductions to risk analysis, discounted cash flow techniques, valuation procedures, and EVA/MVA allows the authors to use and reinforce these key concepts throughout the book.
  • PROFESSIONAL POWER OF THOMSON ONE - BUSINESS SCHOOL EDITION LETS YOUR STUDENTS WORK WITH ACTUAL FINANCIAL TOOLS. Now your students can complete financial research and analysis using the same tool that professional brokers and Wall Street analysts trust every day -- Thomson ONE-BSE online database. You and your students have instant access to leading financial data sources, including Thomson Financial, Worldscope, SEC Disclosure, First Call, Datastream and more. Corresponding Thomson ONE problems in most chapters in the text enable valuable practice.
  • END-OF-CHAPTER SPREADSHEET PROBLEMS GUIDE STUDENTS THROUGH BUILDING A MODEL. Partially completed, end-of-chapter spreadsheets contain financial data and instructions on how to "build a model." This structure guides the student through the problem, minimizes unnecessary typing and data entry, and makes it easy to grade the work because all student answers appear in the same location on the spreadsheet.

Table of Contents

1. An Overview of Financial Management and the Financial Environment.
2. Financial Statements, Cash Flow, and Taxes.
3. Analysis of Financial Statements.
4. Time Value of Money.
5. Bonds, Bond Valuation, and Interest Rates.
6. Risk, Return, and the Capital Asset Pricing Model.
7. Stocks, Stock Valuation, and Stock Market Equilibrium.
8. Financial Options and Applications in Corporate Finance.
9. The Cost of Capital.
10. The Basics of Capital Budgeting: Evaluating Cash Flows.
11. Cash Flow Estimation and Risk Analysis.
12. Financial Planning and Forecasting Financial Statements.
13. Corporate Valuation, Value-Based Management, and Corporate Governance.
14. Distributions to Shareholders: Dividends and Repurchases.
15. Capital Structure Decisions.
16. Working Capital Management.
17. Multinational Financial Management.
18. Lease Financing.
19. Hybrid Financing: Preferred Stock, Warrants, and Convertibles.
20. Initial Public Offerings, Investment Banking, and Financial Restructuring.
21. Mergers, LBOs, Divestitures, and Holding Companies.
22. Bankruptcy, Reorganization, and Liquidation.
23. Derivatives and Risk Management.
24. Portfolio Theory, Asset Pricing Models, and Behavioral Finance.
25. Real Options.
26. Analysis of Capital Structure Theory.
27. Providing and Obtaining Credit.
28. Advanced Issues in Cash Management and Inventory Control.
29. Pension Plan Management.
30. Financial Management in Not-For-Profit Businesses.

What's New

  • REORGANIZATION OFFERS FLEXIBILE COVERAGE FOR ONE-SEMESTER OR TWO-SEMESTER COURSES. This new edition is reorganized to address key concepts and essential topics within the first 17 chapters. This ensures your students receive the coverage they need whether you teach a one-semester or two-semester course. Later chapters provide more advanced and expanded treatment of topics to build upon earlier material and increase student mastery of concepts.
  • THE LATEST EXAMPLES REFLECT TODAY’S GLOBAL ECONOMIC CRISIS. Updated, timely real examples throughout almost every chapter demonstrate the impact of today’s financial crisis in all areas of business and life. New "Global Economic Crisis" boxes in many chapters highlight specific finance issues related to the crisis.
  • CHAPTER OPENING GRAPHICS EMPHASIZE THE BIG PICTURE FOR STUDENTS. New, informative graphics at the beginning of each chapter clearly illustrate how the chapter’s topics and concepts fit into the overall financial framework.
  • EXCEL TOOL KITS, NOW INTEGRATED WITH THE TEXT, ENSURE STUDENT SPREADSHEET PROFICIENCY. The authors have created Excel Tool Kits for each chapter to enhance student proficiency with spreadsheets. Tool Kit models, available as self-taught tutorials the book’s web site, detail many of the features and functions of Excel. In this edition, actual screen captures from the Excel Tool Kit models appear within the text, allowing students to clearly and more closely follow the models in analysis.
  • APLIA FINANCE SAVES TIME AND SUPPORTS INTERACTIVE LEARNING -- Today’s fastest growing interactive online homework management system, Aplia engages your students in course concepts, ensures they practice on a regular basis, and helps them prepare for finance with a series of tutorials. Problem sets specific to this edition provide instant grades and detailed feedback. Your students have the opportunity to learn from and improve with every question.

Learning Resource Bundles

Choose the textbook packaged with the resources that best meet your course and student needs. Contact your Learning Consultant for more information.

Bundle: Text + CengageNOW Printed Access Card

ISBN-10: 111122756X  | ISBN-13: 9781111227562

ePack: Text + CengageNOW Instant Access Code

ISBN-10:  1111869065  | ISBN-13:  9781111869069

Bundle: Text + Aplia Printed Access Card

ISBN-10:  1133263143  | ISBN-13:  9781133263142

Printed Text + Aplia Instant Access

ISBN-10:  1133639828 | ISBN-13:  9781133639824


All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Financial Management: Theory and Practice (Book Only)  (ISBN-10: 1439078106 | ISBN-13: 9781439078105)

Instructor’s Resource CD-ROM  (ISBN-10: 0538748745 | ISBN-13: 9780538748742)

Put all the resources you need at your fingertips with this all-in-one resource. This Instructor’s Resource CD includes the Solutions Manual in Word and the Test Bank as well as completed Excel models for the book’s valuable "Build a Model" problems. For your convenience, the resources on this CD are also available online at the book’s product support web site.

Study Guide  (ISBN-10: 0538746629 | ISBN-13: 9780538746625)

Provide your students with the additional support them need as this valuable Study Guide outlines key sections from each chapter. A useful set of questions and problems for each chapter, similar to those in the text and in the Test Bank, offer worked-out solutions to guide students through the processes.

Test Bank  (ISBN-10: 0538746645 | ISBN-13: 9780538746649)

Ensure your students’ comprehension of concepts with the more than 1,200 class-tested questions and problems in this edition’s proven Test Bank. Each question provides information regarding the topic and degree of difficulty as well as complete solutions for all numerical problems. In addition to the printed format, the Test Bank is also available online and on the Instructor’s Resource CD.

Solutions Manual  (ISBN-10: 0538746637 | ISBN-13: 9780538746632)

This comprehensive Solutions Manual provides useful, accurate solutions to all end-of-chapter materials. In addition to the printed format, the Manual is also available online and on the Instructor’s Resource CD.

ExamView®  (ISBN-10: 0538748729 | ISBN-13: 9780538748728)

Easily check your students’ understanding of concepts and applications with this easy-to-use test creation software. ExamView computerized testing program contains all of the proven questions in the printed Test Bank. To develop customized tests, you can edit questions, add your own questions or instructions, and print out answer sheets. Select questions by number, randomly or through an on-screen preview. You can also create and administer quizzes online, using the Internet, local-area networks, or wide-area networks. ExamView is compatible with Microsoft Windows.

CengageNOW Instant Access Code  (ISBN-10: 0538748672 | ISBN-13: 9780538748674)

Succeed in your financial management course with CengageNOW, a powerful online homework tool that optimizes your learning experience. This interactive system generates a diagnostic Personalized Study Plan (with a chapter-specific Pre-test, Study Plan, and Post-test) to help you master concepts, prepare for exams, and get a better grade

CengageNOW Printed Access Card  (ISBN-10: 0538748680 | ISBN-13: 9780538748681)

With its engaging learning and assessment tools, CengageNOW supports the entire student workflow, from motivation to mastery. For instructors, CengageNOW provides control and customization with the opportunity to tailor the learning experience to improve outcomes.

CengageNOW  (ISBN-10: 0538748664 | ISBN-13: 9780538748667)

Global Economic Watch GEC Resource Center Printed Access Card  (ISBN-10: 1439040753 | ISBN-13: 9781439040751)

The current global economic crisis leaves more and more questions unanswered every day and presents "one of the most teachable moments of the century." South-Western delivers the solution. The Global Economic Crisis Resource Center is an online one-stop shopping location that provides educators with current news, journal articles, videos, podcasts, PowerPoint® slides, test questions, and much more.

Student Supplements

Aplia Instant Access  (ISBN-10: 0840056222 | ISBN-13: 9780840056221)

Aplia Instant Access  (ISBN-10: 1111927626 | ISBN-13: 9781111927622)

Succeed in your course with Aplia’s interactive learning system--featuring practice problems with immediate feedback and tools developed specifically for FINANCIAL MANAGEMENT: THEORY & PRACTICE, 13th Edition. Aplia has already helped more than a million students succeed in college classes.

Study Guide  (ISBN-10: 0538746629 | ISBN-13: 9780538746625)

Discover the additional practice and support you need to master the text material and earn the grade you want. This valuable Study Guide outlines key sections of each chapter for simple review. A complete set of questions and problems similar to those in the text provides worked-out solutions for helpful practice.

MindLink for CengageNOW Instant Access  (ISBN-10: 1285368819 | ISBN-13: 9781285368818)

Succeed in your finance course with CengageNOW, a powerful online homework tool that optimizes your learning experience. This interactive system generates a diagnostic Personalized Study Plan (with a chapter-specific Pre-test, Study Plan, and Post-test) to help you master concepts, prepare for exams, and get a better grade.

Global Economic Watch GEC Resource Center Printed Access Card  (ISBN-10: 1439040753 | ISBN-13: 9781439040751)

The current global economic crisis leaves more and more questions unanswered every day and presents "one of the most teachable moments of the century." South-Western delivers the solution. The Global Economic Crisis Resource Center is an online one-stop shopping location that provides you with current news, journal articles, videos, podcasts, PowerPoint® slides, test questions, and much more.

Meet the Author

Author Bio

Eugene F. Brigham

Dr. Eugene F. Brigham is Graduate Research Professor Emeritus at the University of Florida, where he has taught since 1971. Dr. Brigham 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. Dr. Brigham has served as president of the Financial Management Association and has written many journal articles on the cost of capital, capital structure, and other aspects of financial management. He has authored or co-authored ten 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. He has testified as an expert witness in numerous electric, gas, and telephone rate cases at both federal and state levels. 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 Corporation. Dr. Brigham continues to teach, consult, and complete research in addition to his academic writing. He 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.

Michael C. Ehrhardt

Dr. Michael C. Ehrhardt is a Professor in the Finance Department and is the Paul and Beverly Castagna Professor of Investments. He completed his undergraduate work in Civil Engineering at Swarthmore College. After working several years as an engineer, he earned his M.S. in Operations Research and Ph.D. in Finance from the Georgia Institute of Technology. Dr. Ehrhardt has taught extensively at the undergraduate, masters, and doctoral levels in the areas of investments, corporate finance, and capital markets. He has directed and served on numerous dissertation committees and is a member of the team that developed and delivered the integrative first year of the MBA program. Dr. Ehrhardt teaches in Executive Education Programs and consults in the areas of corporate valuation, value-based compensation plans, financial aspects of supply-chain management, and the cost of capital. He has been awarded the Allen G. Keally Outstanding Teacher Award, the Tennessee Organization of MBA Students Outstanding Faculty member, the College of Business Administration Research & Teaching Award, and the John B. Ross Outstanding Teaching Award in the College of Business. Much of his research focuses on 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. He has also authored or co-authored several books addressing various areas of finance.