Higher Education

Introduction to Corporate Finance: What Companies Do, 3rd Edition

  • includes CourseMate, 1 term (6 months) Printed Access Card and Thomson ONE Business School Edition 6-month Printed Access Card
  • John Graham Duke University
  • Scott B. Smart Indiana University, Bloomington
  • ISBN-10: 1111222282  |  ISBN-13: 9781111222284
  • 736 Pages
  • Previous Editions: 2009, 2006, 2006
  • © 2012 | Published
  • College Bookstore Wholesale Price = $227.25
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About

Overview

Get closer to finance as it's actually practiced today with the powerful approach from award-winning authors John Graham and Scott Smart found in INTRODUCTION TO CORPORATE FINANCE: WHAT COMPANIES DO, 3E. Theoretically sound yet practically relevant, INTRODUCTION TO CORPORATE FINANCE, 3E integrates examples throughout to emphasize the roles of financial managers and CFOs and show how financial management actually works in today's real companies. This book's accessible, inviting approach gives finance majors the solid foundation they need while remaining relevant to the large number of non-majors in your course. Timely real examples and the latest material on the recent financial crisis, innovative online learning tools, and an integrated approach enable you to keep students of varying degrees of ability both motivated and involved. New author John Graham, one of the most prolific and widely cited scholars in finance today, brings new emphasis to connecting real-life corporate finance to everyday life.

Features and Benefits

  • INTEGRATED, CUTTING-EDGE SMARTFINANCE TECHNOLOGY FURTHERS STUDENT UNDERSTANDING. Completely integrated SmartFinance tools offer much more than isolated computer exercises. Students gain a strong understanding of financial topics as SmartFinance tools illustrate concepts, theories, and ethical issues in real business. SmartExcel® highlights Excel® animations of problems, SmartConcepts offer animated review tutorials. SmartSolutions provide problem-solving animations, while SmartPractices, SmartEthics, and SmartIdeas offer video clips of well-known U.S. and global academics and business execs.
  • TIMELY, REAL LIFE EXAMPLES DEMONSTRATE THE IMPACT OF PRINIPCLES ON STUDENTS' LIVES. A wealth of extremely interesting, relevant, and up-to-the-minute "Finance in Your Life" examples highlight finance scenarios that affect today's students' lives. Examples emphasize concepts and applications using a perspective to which students can easily relate.
  • STUDENT-FRIENDLY APPROACH INSTANTLY CONNECTS WITH READERS. The authors use their renowned writing skills and inviting approach to immediately establish common ground with readers. Using Marginal Benefit vs. Marginal Cost as an underlying framework, the text draws connections to the readers' background in economics, to ensure students are familiar with the book's conceptual organization. The text also builds upon students' basic knowledge of statistics and accounting to illustrate the close relationship among business disciplines.
  • CORPORATE SCENARIOS EMPHASIZE REAL LIFE APPLICATION OF CONCEPTS. Intriguing, actual corporate scenarios at the beginning of each chapter capture readers' attention. The emphasis on practicality and relevance continues with a myriad of actual examples and practical applications. Illustrations highlight companies that are frequent newsmakers -- firms students will readily recognize -- and spotlight the dilemmas they face in today's marketplace.
  • GLOBAL PERSPECTIVE OFFERS INSIGHTS INTO TODAY'S WORLD MARKETPLACE. Your students gain a strong understanding of the new global marketplace and how it impacts or will impact their work. This edition compares financial methods and measures in other countries to practices in the United States while clearly illustrating how they relate.
  • THOMSON ONE -BUSINESS SCHOOL EDITION (BSE) PROVIDES ACCESS TO REAL COMPANY DATA. Give students integrated access to real company data for financial analysis and research. Thomson ONE lets students apply the most reliable information to financials, earnings estimates, market data, and source documents using the same financial data sources that finance professionals use every day, including Thomson Financial, Worldscope, SEC Disclosure, Datastream, and more. Correlating ThomsonOne exercises at the end of chapters demonstrate how the information students are learning connects to real life.
  • APLIA™ FOR FINANCE ENGAGES STUDENTS AND SUPPORTS INTERACTIVE LEARNING. This fastest-growing online pedagogical tool for finance saves you time while helping your students perform better in class. This trusted homework solution includes a full, interactive digital copy of this edition of the text as well as access to SmartFinance tools. Text-correlated real-time interactive tutorials, online experiments, news analyses, and auto-graded problem sets further ensure students are consistently well prepared for class with immediate feedback and increased student accountability.

Table of Contents

Part I: INTRODUCTION.
1. The Scope of Corporate Finance.
2. Financial Statement and Cash Flow Analysis.
3. The Time Value of Money.
Part II: VALUATION, RISK, AND RETURN.
4. Valuing Bonds.
5. Valuing Stocks.
6. The Trade-off between Risk and Return.
7. Risk, Return, and the Capital Asset Pricing Model.
Part III: CAPITAL BUDGETING.
8. Capital Budgeting Process and Decision Criteria.
9. Cash Flow and Capital Budgeting.
10. Risk and Capital Budgeting.
Part IV: CAPITAL STRUCTURE AND PAYOUT POLICY.
11. Raising Long-Term Financing.
12. Capital Structure.
13. Long-Term Debt and Leasing.
14. Payout Policy.
Part V: FINANCIAL PLANNING AND MANAGEMENT.
15. Financial Planning.
16. Cash Conversion, Inventory, and Receivables Management.
17. Cash, Payables, and Liquidity Management.
Part VI: SPECIAL TOPICS.
18. International Financial Management.
19. Options.
20. Entrepreneurial Finance and Venture Capital.
21. Mergers, Acquisitions, and Corporate Control.
Web Chapters.
22. Bankruptcy and Financial Distress.
23. Risk Management.

What's New

  • NEW AWARD-WINNING AUTHOR JOHN GRAHAM BRINGS THE LATEST CORPORATE PERSPECTIVE AND BUSINESS EXPERTISE TO THIS EDITION. One of today's most prolific and widely cited scholars in finance, new lead author John Graham of Duke University helps bring a clarity and emphasis on practicality to this study of today's corporate finance practices. Dr. Graham serves as director of Duke University's highly regarded CFO Outlook Survey which provides unique insights that are reflected in this edition's new subtitle, "WHAT COMPANIES DO."
  • TIMELY NEW CONTENT AND EXAMPLES THROUGHOUT THIS EDITION ILLUSTRATE TODAY'S FINANCIAL MANAGEMENT AT WORK. Every chapter includes new material that clearly depicts how financial management works in real companies in today's business world. Students see the importance and practical relevance of the information they are learning.
  • BOOK'S PRACTICAL COVERAGE PROVIDES INSIGHTS INTO THE REAL PRACTICES OF CFOS AND SENIOR EXECUTIVES IN THE U.S. AND ABROAD. Students learn how today CFOs spends their time in business today. The book examines the financial analysis CFOs rely upon to make and support their most important decisions. Students also examine how financial practices vary across countries.
  • THE LATEST COVERAGE OF THE RECENT FINANCIAL CRISIS EMPHASIZES ITS IMPACT AND RAMIFICATIONS. This edition weaves timely material on the recent financial crisis throughout the discussion when appropriate. The authors detail both the causes and consequences of recent financial events.
  • NEW APPROACH REFLECTS EMERGING RESEARCH ON OPTIMAL CAPITAL STRUCTURE. This edition's new approach in Chapter12, based on the latest progressive research, shows students how to trade off the marginal costs and benefits of debt to arrive at an optimal capital structure.
  • NEW CHAPTER EMPHASIZES CURRENT TRENDS IN DIVIDEND AND SHARE REPURCHASE POLICY. Your students gain insights into the most current thinking on dividend and share repurchase policy with new discussions in Chapter 14 that link to today's most recent research on these topics.
  • NEW CHAPTER TAKES AN IN-DEPTH LOOK AT MERGERS AND ACQUISITIONS. This edition's new Chapter 21 closely examines why firms engage in mergers and acquisitions and the consequences and impact of these actions.
  • NEW WEB CHAPTER ON CORPORATE BANKRUPTCY OFFERS OPTIONAL, THOROUGH DISCUSSION OF THIS TOPIC. With the new online Chapter 22, you have the option of covering corporate bankruptcy with a complete discussion that introduces students to the various legal issues and incentives that occur when a company becomes distressed.
  • NEW WEB CHAPTER ON CORPORATE BANKRUPTCY OFFERS OPTIONAL, THOROUGH DISCUSSION OF THIS TOPIC. With the new online Chapter 22, you have the option of covering corporate bankruptcy with a complete discussion that introduces students to the various legal issues and incentives that occur when a company becomes distressed.
  • NEW "JOB INTERVIEW QUESTIONS" IN THE MARGINS HIGHLIGHT TYPICAL QUESTIONS INTERVIEWERS OFTEN ASK IN ACTUAL JOB INTERVIEWS. These new "Job Interview Questions" in the margins of the text help students effectively prepare for actual job interviews as the questions emphasize topics and familiarize students with actual real questions that are used during job interviews in finance. Questions appear next to the areas in the text that provide the answers.
  • NEW "WHAT TO ASK" QUESTIONS IN THE MARGINS SUGGEST WHAT STUDENTS SHOULD ASK DURING JOB INTERVIEWS. These brief's, useful "What to Ask" suggestions appear in the margins to guide students in important questions they should ask when interviewing for a job in finance. Questions appear next to the area where the textbook presentation provides corresponding answers.
  • NEW "WHAT COMPANIES DO" FEATURES DEMONSTRATE BUSINESS LEADERS MAKING DECISIONS USING THE BOOK'S FINANCIAL TOOLS. Your students see, first-hand, the practical value of the information they are mastering in this text. New "What Companies Do" Chapter Openers and features throughout this edition profile actual managers and investors making key business decisions using the finance tools presented in the book. Students clearly see how finance theory applies to today's business challenges.
  • NEW "WHAT COMPANIES DO GLOBALLY" FEATURES COMPARE FINANCE PRACTICES AROUND THE WORLD. The authors use their first-hand experience to introduce your students to aspects of corporate finance within today's international organizations. These new "What Companies Do Globally" features in every chapter compare corporate finance practices around the world and emphasize the ongoing effects of the recent global financial crisis.
  • NEW "WHAT CFOS DO" FEATURES ILLUSTRATE HOW TODAY'S SENIOR EXECUTIVES USE FINANCIAL THEORIES TO MAKE KEY DECISIONS. Show your students what today real CFOs think is and actually do in practice. These new features highlight how leading, actual senior executives rely on financial theory like that in the book to make key decisions. Features incorporate the latest results from Duke University's CFO Business Outlook quarterly survey of financial executives -- authoritative survey findings frequently referenced by media, including the Wall Street Journal and NPR.
  • MORE LIVE SOLUTIONS FOR END-OF-CHAPTER PROBLEMS ENABLE STUDENTS TO REVIEW CORRECT SOLUTIONS. This edition brings even more clarification to end-of-chapter problems as a larger number of problems now offer live solutions. Your students can instantly watch videos or flash animations that demonstrate important solution techniques. The Live Solutions clearly link the theory presented in the book with successful practice.
  • NEW SMART PRACTICES VIDEOS DEMONSTRATE TODAY'S MOST CUTTING-EDGE THINKING IN FINANCE. Now your students can learn from some of today's prominent scholars in finance and business leaders as new Smart Practice Videos closely examine the innovative thinking and progressive practices from these individuals.
  • NEW SMART SOLUTIONS VIDEOS SHOW THE BOOK'S AUTHORS SOLVING END-OF-CHAPTER PROBLEMS. Some student struggle to understand how to solve finance problems until a professor walks them through the solution step-by-step. These new, useful videos do just that as the text's author team, known for their award-winning teaching, solves end-of-chapter problems in clear presentations that are easy to follow.
  • NEW CROSS-DISCIPLINARY APPLICATIONS KEEP FOCUS RELEVANT TO ALL BUSINESS STUDENTS. This edition incorporates engaging cross-functional applications into the book's examples and end-of-chapter problems. Students pursuing any business major, as well as finance majors, find the book's content and applications relevant to their success.
  • NEW MINI-CASE IN EACH CHAPTER PROVIDES ADDITIONAL OPPORTUNITIES TO APPLY FINANCIAL THEORIES AND SKILLS. This edition provides a new, additional mini-case in each chapter that highlights today's most contemporary corporate finance challenges and provides insights into the practicality of skills students are learning.
  • EXPANDED END-OF-CHAPTER EXERCISES FURTHER EMPHASIZE THE APPLICATION OF CONCEPTS. This edition offers additional end-of-chapter materials to provide practice in the key areas of corporate finance that are most critical for business success.
  • NEW EXCEL® APPLICATIONS AND TUTORIALS NOW PREPARE STUDENTS FOR FINANCE SUCCESS. This award-winning author team has considered all of the learning details your students need for success. New Excel® applications and tutorials demonstrate how to use Excel to solve more complex financial challenges.

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  • Paperbound Edition, Abridged Version

    ISBN-10: 1111532613 | ISBN-13: 9781111532611

    List Price = $274.95  | CengageBrain Price = $274.95  | College Bookstore Wholesale Price = $207.00

Learning Resource Bundles

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Printed Text + Finance CourseMate with eBook Instant Access Code

ISBN-10: 1285266315  | ISBN-13: 9781285266312

List Price = $315.95  | CengageBrain Price = $315.95  | College Bookstore Wholesale Price = $237.25

This Bundle Includes:

  • CourseMate Instant Access
    List Price = $205.00  | College Bookstore Wholesale Price = $205.00
  • Introduction to Corporate Finance: What Companies Do
    List Price = $301.95  | CengageBrain Price = $301.95  | College Bookstore Wholesale Price = $227.25


Printed Text + CengageNOW with eBook Instant Access Code

ISBN-10:  1133545025  | ISBN-13:  9781133545026

List Price = $315.95  | CengageBrain Price = $315.95  | College Bookstore Wholesale Price = $237.25

This Bundle Includes:

  • Introduction to Corporate Finance: What Companies Do
    List Price = $301.95  | CengageBrain Price = $301.95  | College Bookstore Wholesale Price = $227.25
  • CengageNOW with eBook Instant Access Code
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Bundle: Text + CourseMate, 1 term (6 months) Printed Access Card + Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card + Aplia™ 1 term Printed Access Card

ISBN-10:  1133220584  | ISBN-13:  9781133220589

List Price = $315.95  | CengageBrain Price = $315.95  | College Bookstore Wholesale Price = $237.25

This Bundle Includes:

  • Introduction to Corporate Finance: What Companies Do
    List Price = $301.95  | CengageBrain Price = $301.95  | College Bookstore Wholesale Price = $227.25
  • Aplia™, 1 term Printed Access Car
    List Price = $136.00  | College Bookstore Wholesale Price = $102.00


Bundle: Text + Finance CourseMate with eBook Printed Access Card

ISBN-10:  1133220576 | ISBN-13:  9781133220572

List Price = $445.95  | College Bookstore Wholesale Price = $330.50

This Bundle Includes:

  • Introduction to Corporate Finance: What Companies Do
    List Price = $301.95  | CengageBrain Price = $301.95  | College Bookstore Wholesale Price = $227.25
  • CourseMate, 1 term (6 months) Printed Access Card
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Supplements

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Instructor Supplements

Instructor's Resource CD-ROM  (ISBN-10: 1111529914 | ISBN-13: 9781111529918)

Everything is a convenient click away on this IRCD, which includes the Instructor's Manual, Solutions Manual, Test Bank in Word, ExamView™, Excel® Models, and PowerPoint® Lecture Slides. Tools are also available on the password-protected companion website. The revised Instructor's Solutions Manual includes chapter overviews, lecture guides, enrichment exercises, answers to text questions, and solutions for end-of-chapter problems. Excel® Models provide templates for students to solve problems. PowerPoint slides feature graphs and tables to enhance lectures.

Meet the Author

Author Bio

John Graham

John Graham is the D. Richard Mead Professor of Finance at Duke University where he also serves as the Director of the CFO Global Business Outlook survey. He is coeditor of the Journal of Finance. Professor Graham is also a Research Associate with the National Bureau of Economic Research, Vice President of the Western Finance Association, and been recognised for outstanding teaching and faculty contributions at Duke and the University of Utah.

Scott B. Smart

John Graham is the D. Richard Mead Professor of Finance at Duke University where he also serves as the Director of the CFO Global Business Outlook survey. He is coeditor of the Journal of Finance. Professor Graham is also a Research Associate with the National Bureau of Economic Research, Vice President of the Western Finance Association, and been recognised for outstanding teaching and faculty contributions at Duke and the University of Utah.