Higher Education

Corporate Finance: A Focused Approach, 5th Edition

  • includes Thomson ONE - Business School Edition 6-Month Printed Access Card
  • Michael C. Ehrhardt University of Tennessee
  • Eugene F. Brigham University of Florida
  • ISBN-10: 1133947530  |  ISBN-13: 9781133947530
  • 840 Pages
  • Previous Editions: 2011, 2009, 2006
  • © 2014 | Published
  • College Bookstore Wholesale Price = $264.00
  • Newer Edition Available
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About

Overview

Focus on the financial concepts, skills, and technological applications that are most critical for MBA students in today’s workplace with Ehrhardt/Brigham’s CORPORATE FINANCE: A FOCUSED APPROACH 5E. The text provides an in-depth treatment of essential corporate finance topics within a streamlined presentation that you can complete in a single semester. With its relevant and engaging presentation and numerous examples, your students will learn the latest financial developments as they also learn how to maximize a firm’s value in today’s changing business world. Students will master the many features and functions of spreadsheets with chapter Excel® Tool Kits, Build a Model problems, and Mini Cases that encourage “what-if” analysis on a real-time basis. Students will also gain hands-on experience using Thomson ONE Business School Edition, which gives students access to the same Thomson Reuters Financial database that business professionals use every day. As part of its comprehensive product package, Ehrhardt/Brigham’s CORPORATE FINANCE: A FOCUSED APPROACH 5E includes CengageNOW and the best-selling Aplia™ Finance as optional learning solutions that complement the book’s focused presentation of corporate finance fundamentals, support your course needs and outcomes, and help your students become “First in Finance”.

Features and Benefits

  • 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 companion site.
  • RELEVANT EXAMPLES THAT REFLECT TODAY’S GLOBAL ECONOMIC ENVIRONMENT. Updated, timely real examples throughout almost every chapter demonstrate the impact of today’s financial crisis in all areas of business and life. “Global Economic Crisis” boxes in many chapters highlight specific finance issues related to today’s economic environment.
  • EXCEL TOOL KITS ENSURE STUDENT SPREADSHEET PROFICIENCY. Actual screen captures from the Excel Tool Kit models that correspond with each chapter appear within this edition, allowing students to clearly and more closely follow the models in analysis.
  • 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.
  • PROFESSIONAL POWER OF THOMSON ONE - BUSINESS SCHOOL EDITION. 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 Reuters Financial, Worldscope, SEC Disclosure, First Call, Datastream and more. Corresponding Thomson ONE problems in most chapters in the text enable valuable practice.
  • 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.

Table of Contents

PART I: FUNDAMENTAL CONCEPTS OF CORPORATE FINANCE.
1. An Overview of Financial Management and the Financial Environment.
Web Extensions 1A: An Overview of Derivatives; 1B: A Closer Look at the Stock Markets
2. Financial Statements, Cash Flow, and Taxes.
Web Extensions 2A: The Federal Income Tax System for Individuals.
3. Analysis of Financial Statements.
PART II: FIXED INCOME SECURITIES.
4. Time Value of Money.
Web Extensions 4A: The Tabular Approach; 4B: Derivation of Annuity Formulas; 4C: Continuous Compounding.
5. Bonds, Bond Valuation, and Interest Rates.
Web Extensions 5A: A Closer Look at Zero Coupon Bonds; 5B: A Closer Look at TIPS: Treasury Inflation Protected Securities; 5C: A Closer Look at Bond Risk: Duration; 5D: The Pure Expectations Theory and Estimation of Forward Rates.
PART III: STOCKS AND OPTIONS.
6. Risk, Return, and the Capital Asset Pricing Model.
Web Extensions 6A: Continuous Probability Distributions; 6B: Estimating Beta with a Financial Calculator.
7. Stocks, Stock Valuation, and Stock Market Equilibrium.
Web Extensions 7A: Derivation of Valuation Equations.
8. Financial Options and Applications in Corporate Finance.
PART IV: PROJECTS AND THEIR VALUATION.
9. The Cost of Capital.
Web Extensions 9A: The Required Return Assuming Nonconstant Dividends and Stock Repurchases.
10. The Basics of Capital Budgeting: Evaluating Cash Flows.
Web Extensions 10A: The Accounting Rate of Return (ARR).
11. Cash Flow Estimation and Risk Analysis.
Web Extensions 11A: Certainty Equivalents and Risk-Adjusted Discount Rates.
PART V: CORPORATE VALUATION AND GOVERNANCE.
12. Financial Planning and Forecasting Financial Statements.
Web Extensions 12A: Advanced Techniques for Forecasting Financial Statements Accounts.
13. Corporate Valuation, Value-Based Management and Corporate Governance.
PART VI: CASH DISTRIBUTIONS AND CAPITAL STRUCTURE.
14. Distributions to Shareholders: Dividends and Repurchases.
15. Capital Structure Decisions.
Web Extensions 15A: Degree of Leverage.
PART VII: MANAGING GLOBAL OPERATIONS.
16. Working Capital Management.
Web Extensions 16A: Secured Short-Term Financing.
17. Multinational Financial Management.
APPENDIXES.
A. Solutions to Self-Test Problems.
B. Answers to End-of-Chapter Problems.
C. Selected Equations and Data.
D. Values of the Areas under the Standard Normal Distribution Function.
Glossary.
Name Index.
Subject Index.

What's New

  • Increased corporate governance coverage throughout the text.
  • Increased emphasis on free cash flows (FCF) in chapters 13 and 14.
  • Refreshed, easier-to-read interior design.
  • Test Bank content now tagged by Tier I (Business Program.
  • Interdisciplinary Learning Outcomes) and Tier II (Finance-specific) standards, topic, Bloom’s Taxonomy, and difficulty level to track course or institution learning outcomes.

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.

Printed Text + Aplia Instant Access

ISBN-10: 1285997247  | ISBN-13: 9781285997247

List Price = $363.95  | CengageBrain Price = $363.95  | College Bookstore Wholesale Price = $274.00

This Bundle Includes:

  • Corporate Finance: A Focused Approach
    List Price = $351.95  | CengageBrain Price = $351.95  | College Bookstore Wholesale Price = $264.00
  • Aplia™, 1 term Instant Access
    List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00


ePack: Text + CengageNOW Instant Access

ISBN-10:  1305417844 | ISBN-13:  9781305417847

List Price = $363.95  | CengageBrain Price = $363.95  | College Bookstore Wholesale Price = $274.00

This Bundle Includes:

  • Corporate Finance: A Focused Approach
    List Price = $351.95  | CengageBrain Price = $351.95  | College Bookstore Wholesale Price = $264.00
  • CengageNOW Instant Access
    List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00


Supplements

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

ExamView®  (ISBN-10: 1285088271 | ISBN-13: 9781285088273)

Revised to reflect the 5th edition, the ExamView® Test Bank contains the same true/false and multiple choice questions that are in the Microsoft® Word Test Bank. All question content is tagged according to Tier I (Business Program Interdisciplinary Learning Outcomes) and Tier II (Finance-specific) standards, topic, Bloom’s Taxonomy, and difficulty level. You can add or edit questions, instructions, and answers, and select questions by previewing them on the screen, selecting them randomly, or selecting them by number. ExamView® is compatible with Microsoft® Windows®, and you can also create and administer quizzes online, whether over the Internet, a local area network (LAN), or a wide area network (WAN). The ExamView® Test Bank and software is only available on a standalone CD-ROM. Contact your Cengage Learning sales representative for more information.

Instructor's Resource CD-ROM  (ISBN-10: 1285088255 | ISBN-13: 9781285088259)

Put all the instruction tools you need at your fingertips with this all-in-one resource. The IRCD includes Microsoft® Word versions of the Solutions Manual and Test Bank, which is tagged according to Tier I (Business Program Interdisciplinary Learning Outcomes), and Tier II (Finance-specific) standards, topic, Bloom’s Taxonomy, and difficulty level. The IRCD also contains PowerPoint lecture slides, Build-A-Model spreadsheets and solutions, Excel Tool Kits, and Mini Case Model spreadsheets. For your convenience, all of the instructor resources are available on the textbook companion site.

CengageNOW Instant Access  (ISBN-10: 1285170695 | ISBN-13: 9781285170695)

Designed by instructors for instructors, CengageNOW mirrors your natural workflow and provides time-saving, performance-enhancing tools for you and your students. CengageNOW takes the best of current technology including online homework management; fully customizable algorithmic end-of-chapter problems and test bank; and course support materials such as online quizzing, and tutorials to support your course goals. Contact your Cengage Learning sales representative for more information.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Aplia™, 1 term Instant Access  (ISBN-10: 1285425340 | ISBN-13: 9781285425344)

Aplia™ Finance improves comprehension and outcomes by increasing student effort and engagement. Students stay on top of coursework with regularly scheduled homework assignments while automatic grading provides detailed, immediate feedback. Aplia™ assignments match the language, style, and structure of the text which allows your students to apply what they learn directly to homework. Find out more at www.aplia.com/finance or contact your Cengage Learning sales representative for more information.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Student Supplements

CengageNOW Instant Access  (ISBN-10: 1285170695 | ISBN-13: 9781285170695)

Designed by instructors for instructors, CengageNOW mirrors your natural workflow and provides time-saving, performance-enhancing tools for you and your students. CengageNOW takes the best of current technology including online homework management; fully customizable algorithmic end-of-chapter problems and test bank; and course support materials such as online quizzing, and tutorials to support your course goals. Contact your Cengage Learning sales representative for more information.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Aplia™, 1 term Instant Access  (ISBN-10: 1285425340 | ISBN-13: 9781285425344)

Aplia™ Finance improves comprehension and outcomes by increasing student effort and engagement. Students stay on top of coursework with regularly scheduled homework assignments while automatic grading provides detailed, immediate feedback. Aplia™ assignments match the language, style, and structure of the text which allows your students to apply what they learn directly to homework. Find out more at www.aplia.com/finance or contact your Cengage Learning sales representative for more information.

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

LMS Integrated for Aplia™, 1 term Instant Access  (ISBN-10: 1285752910 | ISBN-13: 9781285752914)

One million+ students, one billion answers In just 10 years, more than one billion answers have been submitted through Aplia, the premier online assignment solution. Millions of students use Aplia to better prepare for class and for their exams. Join them today! Know what’s important Aplia assignments mean “no surprises”—with an at-a-glance view of current assignments organized by due date, you always know what’s due, and when. Discover real-world relevance Aplia ties your lessons into real-world applications so you get a bigger, better picture of how you’ll use your education in your future workplace. Master the content Automatic grading and immediate step-by-step feedback helps you master content the right way the first time. Student Testimonial: “I was very engaged; the content in Aplia is useful. The study tools and materials in Aplia most definitely help me feel more prepared. I understood more than I would have otherwise.” - Tia Student, Glendale Community College CTA: Ask your instructor about Aplia for this course. www.cengage.com/aplia

List Price = $134.00  | CengageBrain Price = $134.00  | College Bookstore Wholesale Price = $134.00

Meet the Author

Author Bio

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.

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.