Higher Education

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

  • includes with Economic CourseMate with eBook 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: 1111532613  |  ISBN-13: 9781111532611
  • 640 Pages
  • Previous Editions: 2009
  • © 2012 | Published
  • College Bookstore Wholesale Price = $207.00
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About

Overview

INTRODUCTION TO CORPORATE FINANCE: WHAT COMPANIES DO, ABRIDGED, 3RD EDITION is a text that uses timely real-world relevance, innovative learning tools, and versatile resources to meet the needs of finance majors while remaining accessible to non-majors. It delivers the ideal solution for instructors challenged with keeping students of varying degrees of ability and interest motivated and invested in the material. The text incorporates examples to emphasize the roles of financial managers and CFOs, and to show how financial management actually works in real companies. Chapters flow smoothly to review materials and an interactive website. In addition, the SmartFinance online features are used to identify key resources that are highlighted in the text.

Features and Benefits

  • Cutting-Edge Technology: Completely integrated, SmartFinance is not another isolated computer exercise. It helps students gain a stronger understanding of financial topics every step of the way as they progress through the text. Helping to illustrate concepts, theories, and ethical issues in real business, these high-tech tools include: Excel animations of problems (SmartExcel), animated review tutorials (SmartConcepts), problem-solving animations (SmartSolutions), and video clips (SmartPractices, SmartEthics, SmartIdeas) of well-known U.S. and global academics and business executives.
  • Real-Life Examples: Students can easily relate to the timely, interesting and relevant "Finance in Your Life" examples that focus on finance scenarios that can affect students' lives.
  • Student-Friendly: The text immediately finds common ground with readers. Using Marginal Benefit vs. Marginal Cost as an underlying framework, the text draws connections to readers' background in economics, giving students immediate familiarity with the book's conceptual organization. It also draws from students' basic knowledge of statistics and accounting--illustrating the close relationship among business disciplines.
  • Real-Life Application: Real corporate scenarios capture readers' attention at the start of each chapter, and then extend throughout with a myriad of examples and practical applications. Illustrations highlight companies that are frequent newsmakers and spotlight the dilemmas they face in today's marketplace.
  • Global Perspective: Giving students insight into the global marketplace in which they will (or already) work, the text compares financial methods and measures in other countries to practices in the United States--illustrating how they relate.
  • ThomsonONE - Business School Edition: Readers receive integrated access to real company data for financial analysis and research. Thomson ONE enables students to apply the most reliable information to financials, earnings estimates, market data and source documents. At the end of appropriate chapters, the authors include exercises requiring students to draw from the same financial data sources that finance professionals use every day--including Thomson Financial, Worldscope, SEC Disclosure, Datastream, and more-- which makes it easy for students to see how what they are learning connects to real life.
  • Web chapters: Chapters for further study are included on the text Web Site.
  • Aplia for Finance: Adopters of Aplia Finance can access the text directly on the Aplia website. This version includes a digital copy of the text and access to SmartFinance tools, combined with the trusted Aplia Finance homework solution that ensures students are well-prepared for class.

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.
WEB CHAPTERS.
19. Options.
20. Entrepreneurial Finance and Venture Capital.
21. Mergers, Acquisitions, and Corporate Control.
22. Bankruptcy and Financial Distress.
23. Risk Management.

What's New

  • Every chapter includes new material illustrating how financial management works in real companies.
  • NEW! Students learn how CFOs spend their time, what analysis CFOs rely on to back up their most important decisions, and how financial practices vary across countries.
  • NEW! Financial crisis material is included where appropriate, reflecting the causes and consequences of the recent financial crisis.
  • NEW! Chapter12 includes a new approach that reflects emerging research and shows students how to trade off the marginal costs and benefits of debt to arrive at an optimal capital structure.
  • NEW! Chapter 14 emphasizes current trends in dividend and share repurchase policy, accessibly linking to recent research.
  • NEW! Chapter 21, Mergers, Acquisitions and Corporate Control, explains why firms engage in mergers and acquisitions, and the resulting consequences.
  • NEW! Chapter 22, Bankruptcy and Financial Distress, offers a complete discussion of corporate bankruptcy to equip students to think through the various legal issues and incentives that occur when a company becomes distressed.
  • NEW! Job Interview Questions appear in the margins of the text at exactly the spot where the textbook provides the answers. Students can see for themselves which topics surface again and again in actual job interviews.
  • NEW! What to Ask questions appear in the margins where the textbook provides answers. These are suggestions for what students should ask when interviewing for a job in finance.
  • NEW! What Companies Do chapter openers and in-text features help students see that managers and investors make decisions using the tools presented in the book, showing how finance theory applies to today's business challenges.
  • NEW! What Companies Do Globally features in each chapter compare corporate finance practices around the world, and the effects of the recent global financial crisis.
  • NEW! What CFOs Do features in many chapters illustrate how senior executives rely on financial theory to make key decisions.
  • NEW! The number of end-of-chapter problems that come with live solutions has been increased. Students can see (on video or through flash animation) demonstrations of important solution techniques and linkage to the theory presented in the book.
  • NEW! Smart Practices Videos have been added that demonstrate cutting-edge thinking and practices by scholars and business leaders today.
  • NEW! Smart Solutions include NEW videos of the author team solving end-of-chapter problems. This walks students step-by-step through solving finance problems.

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

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.