Higher Education

Basic Finance: An Introduction to Financial Institutions, Investments, and Management, 11th Edition

  • Herbert B. Mayo The College of New Jersey
  • ISBN-10: 1285425790  |  ISBN-13: 9781285425795
  • 736 Pages
  • Previous Editions: 2012, 2007, 2004
  • © 2016 | Published
  • College Bookstore Wholesale Price = $234.00
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About

Overview

Combining the most current coverage available with a student-friendly modular format, BASIC FINANCE: AN INTRODUCTION TO FINANCIAL INSTITUTIONS, INVESTMENTS & MANAGEMENT, 11E introduces the three primary aspects of finance and examines how they are interrelated to give students a firm foundation in all of finance--not just corporate finance. Each chapter offers a concise, self-contained treatment of one or two finance concepts or institutions easily covered in a single class period. Students can build on what they learn through the text's Internet resources, number problems, illustrations using financial calculators, and a Microsoft® Excel appendix. The text introduces the time value of money using three approaches to reinforce the concept--interest tables, financial calculator keystrokes, and investment analysis calculator software created specifically for the Mayo books. The 11th Edition includes additional self-help problems with answers and relationships with answers, new coverage of classes of stock/preferred stock, and new sections on Internet sources of information. It is also completely up to date with current tax laws.

Features and Benefits

  • Fill-in-the-blank relationships and problems with answers show the progression from question through working out the problem, the final answer, and any implications of the answer. Extremely reader friendly, this format is especially helpful for students learning outside of class and for distance learners.
  • The Time Value of Money chapter uses three approaches to convey this important topic--interest tables, a financial calculator, and Excel software. In addition, expansive coverage of the time value of money is integrated throughout as well as included in the Excel appendix, while numerical illustrations in the margins reinforce the concept. This repeated exposure helps students gain a thorough understanding of a topic that can be difficult for some to grasp.
  • Succinct modules help students digest financial concepts more easily, and without intimidation.
  • Two derivatives chapters offering comprehensive coverage of options and futures add sophistication and breadth to this entry-level text.
  • Learning objectives, number problems, illustrations using financial calculators, and concise explanations help drive home key concepts.
  • Calculator solutions and a glossary in the margin facilitate learning without breaking the flow of the text.

Table of Contents

Preface.
1. An Introduction to Basic Finance.
Part I: FINANCIAL INSTITUTIONS.
2. The Role of Financial Markets and Financial Intermediaries.
3. Investment Banking.
4. Securities Markets.
5. The Federal Reserve.
6. International Currency Flows.
Part II: FINANCIAL TOOLS.
7. The Time Value of Money.
8. Risk and Its Measurement.
9. Analysis of Financial Statements.
Part III: INVESTMENTS.
10. The Features of Stock.
11. Stock Valuation.
12. The Features of Long-Term Debt--Bonds.
13. Bond Pricing and Yields.
14. Preferred Stock.
15. Convertible Securities.
16. Investment Returns.
17. Investment Companies.
Part IV: CORPORATE FINANCE.
18. Forms of Business and Corporate Taxation.
19. Break-Even Analysis and the Payback Period.
20. Leverage.
21. Cost of Capital.
22. Capital Budgeting.
23. Forecasting.
24. Cash Budgeting.
25. Management of Current Assets.
26. Management of Short-Term Liabilities.
27. Intermediate-Term Debt and Leasing.
Part V: DERIVATIVES.
28. Options: Puts and Calls.
29. Futures and Swaps.
Appendix A: Interest Factors for the Future Value of One Dollar.
Appendix B: Interest Factors for the Present Value of One Dollar.
Appendix C: Interest Factors for the Future Value of an Annuity of One Dollar.
Appendix D: Interest Factors for the Present Value of an Annuity of One Dollar.
Appendix E: Using Excel to Solve Financial Problems.
Appendix F: Answers to Selected Problems.
Index.

What's New

  • Offering the most current coverage available, BASIC FINANCE: AN INTRODUCTION TO FINANCIAL INSTITUTIONS, INVESTMENTS, AND MANAGEMENT, 11E is completely revised and up to date.
  • The 11th Edition includes more explicit references to assumptions used in the analyses.
  • Additional self-help problems with answers and relationships with answers ensure students have plenty of hands-on experience putting text concepts into practice.
  • Coverage of classes of stock/preferred stock in Chapter 10: The Features of Stock has been thoroughly rewritten and expanded.
  • Chapter 12: The Features of Long-Term Debt--Bonds offers new sections on Internet sources of information and on relationships.
  • Chapter 18: Forms of Business and Corporate Taxation has been completely rewritten and updated to reflect current tax laws.

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

Cengage Learning Testing, powered by Cognero Instant Access  (ISBN-10: 1305268989 | ISBN-13: 9781305268982)

Cengage Learning Testing Powered by Cognero is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; and deliver tests from your learning management system, your classroom, or wherever you want!

Website  (ISBN-10: 1305499123 | ISBN-13: 9781305499126)

Instructor resources are conveniently located on the password-protected website accessible via your Cengage Learning Instructor account at http://login.cengage.com. Instantly access the Instructor's Manual and PowerPoint® slides that highlight key chapter features.

Meet the Author

Author Bio

Herbert B. Mayo

Dr. Herbert Mayo teaches finance at The College of New Jersey and is a former Director of Accreditation. A well-respected author and experienced educator, he has written several successful books focusing on critical finance issues and today's investment opportunities. He earned his PhD from Rutgers University and his undergraduate degree from the University of North Carolina at Chapel Hill.