Higher Education

Contemporary Financial Management, 12th Edition

  • includes Thomson ONE - Business School Edition 6-Month Printed Access Card
  • R. Charles Moyer University of Louisville
  • James R. McGuigan
  • Ramesh P. Rao Oklahoma State University
  • William J. Kretlow University of Houston
  • ISBN-10: 0538479175  |  ISBN-13: 9780538479172
  • 960 Pages
  • Previous Editions: 2009, 2006, 2003
  • © 2012 | Published
  • College Bookstore Wholesale Price = $270.00
  • Newer Edition Available
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About

Overview

CONTEMPORARY FINANCIAL MANAGEMENT gives students a comprehensive, contemporary introduction to financial management focusing on maximizing shareholder wealth and effectively managing cash flow. Students learn the international aspects of financial management, examine the ethical behavior of managers, and study the effects of the 2008-2009 recessions on corporations. Financial Challenges, icons, integrative cases, and numerous other learning features highlight critical concepts and provide important practice. Excel® templates in this edition’s companion web site offer additional practice in using technology to achieve financial management objectives. Thomson ONE Business School Edition, included with the text, places the same financial analysis tool used daily by Wall Street professionals into the hands of students to further their financial management skills and success.

Features and Benefits

  • NEW CHAPTER-OPENING FINANCIAL CHALLENGES: Many chapters in this edition include new, current “Financial Challenges” chapter-opening scenarios that capture some of the most challenging scenarios in today’s field to direct students’ attention toward the chapter concepts. Some highlight the 2008-2009 recession.
  • FOUNDATION CONCEPTS HIGHLIGHT VITAL CONTENT: Unique “Foundation Concepts” icons clearly identify the finance concepts within each chapter that are most vital for students to know. Some highlight the 2008-2009 recession.
  • INTEGRATIVE CASES THAT WORK WITH EXCEL®: At the end of appropriate chapters, a set of comprehensive Integrative Cases provides important hands-on applications. Many of them can be used with the Excel® templates on the Web site as students learn the power of computers in performing sensitivity analysis.
  • ETHICS, INTERNATIONAL, AND ENTREPRENEURIAL ISSUES ARE ADDRESSED: Unique “Ethical Issues” boxes raise sensitivity to ethical challenges facing managers and often prompt class discussion. “International Issues” illustrate global considerations necessary to making financial decisions. “Entrepreneurial Issues” emphasize unique finance-related problems and concerns of today’s entrepreneur.
  • THOMSON-ONE BUSINESS SCHOOL EDITION IS INCLUDED WITH THE TEXT: Motivate students to perform basic research and analysis with Thomson ONE-BSE online financial database, the same tool that professional brokers and analysts around the world use every day. Students can access leading financial data sources, including Thomson Financial, Worldscope, SEC Disclosure, Datastream, and more, as they complete special Thomson ONE-BSE end-of-chapter problems in the text.

Table of Contents

PART I: INTRODUCTION.
1. The Role and Objective of Financial Management.
2. The Domestic and International Financial Marketplace.
3. Evaluation of Financial Performance.
4. Financial Planning and Forecasting.
PART II: DETERMINANTS OF VALUATION.
5. The Time Value of Money.
6. Fixed Income Securities: Characteristics and Valuation.
7. Common Stock: Characteristics, Valuation, and Issuance.
8. Analysis of Risk and Return.
PART III: THE CAPITAL INVESTMENT DECISION.
9. Capital Budgeting and Cash Flow Analysis.
10. Capital Budgeting: Decision Criteria and Real Option Considerations.
11. Capital Budgeting and Risk.
PART IV: THE COST OF CAPITAL, CAPITAL STRUCTURE, AND DIVIDEND POLICY.
12. The Cost of Capital.
13. Capital Structure Concepts.
14. Capital Structure Management in Practice.
15. Dividend Policy.
PART V: WORKING CAPITAL MANAGEMENT.
16. Working Capital Policy and Short-Term Financing.
17. The Management of Cash and Marketable Securities.
18. The Management of Accounts Receivable and Inventories.
PART VI: ADDITIONAL TOPICS IN CONTEMPORARY FINANCIAL MANAGEMENT.
19. LEASE AND INTERMEDIATE-TERM FINANCING.
20. Financing with Derivatives.
21. Risk Management.
22. International Financial Management.
23. Corporate Restructuring.
Appendix 2A Taxes.
Appendix 5A Continuous Compounding and Discounting.
Appendix 9A Depreciation.
Appendix 10A Mutually Exclusive Investments Having Unequal Lives.
Appendix 14A Breakeven Analysis.
Appendix 20A The Black-Scholes Option Pricing Model.
Appendix 20B Bond Refunding Analysis.

What's New

  • Chapter learning objectives have been added to all chapters as well as updated references (footnotes and web references) throughout the book.
  • The previous Chapter 6, Analysis of Risk a Return, is repositioned as Chapter 8 so that the two valuation chapters (Fixed Income Securities and Common Stock) follow immediately after the Time Value of Money Chapter (5).
  • Numerous new Financial Challenges begin most of the chapters: Issues Confronting Financial Managers (Ch. 1); Ford’s Investment in Volvo Comes up Short (Ch. 9); Risk in the Pharmaceutical Industry (Ch. 11); The Euro Takes a Dive (Ch. 22).
  • Chapter 1 is updated to reflect the current economic environment affecting business.
  • Chapter 2 is updated with regard to material on the stock market, and a NEW section gives an overview of the financial crisis and how it affected firms.
  • Chapter 3 is updated throughout and contains new examples on earnings management and balance sheet quality.
  • Chapter 6 discusses the GM bond downgrade and bankruptcy, and TARP.
  • Chapter 7 covers AIG and reverse stock splits, and HSBC and rights offerings.
  • Chapter 8 includes material on default risk premiums.
  • Chapter 9 Introduction is updated with new data on the magnitude of capital spending by large companies.
  • Chapter 10 discusses an additional item identified as a source of positive NPV projects, and data on prevalence of use of NPV and IRR have been updated.
  • Chapter 12 includes updated data throughout the cost of capital calculation process.
  • Chapter 13 contains new corporate examples to illustrate various sources of business risk: Ford, Delta, United Airlines, Microsoft, and New coverage on Financial Flexibility and Market Timing theories of capital structure--in response to our survey of faculty.
  • Chapter 14 discusses financial executives’ survey evidence on their views on capital structure (Graham and Harvey Survey, 2001), new examples on role of ratings in capital structure choice: GE, J&J, Rolls-Royce, and new example on retention of control motivation for capital structure.
  • Chapter 15 includes an expanded discussion of stock repurchases, and discussion on recent financial executives’ survey evidence on dividend policy decisions in practice.
  • Chapter 19 has updated aggregate lease data, and a shortened sale-leaseback discussion, and there is new and updated material on SBA loan financing.

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 + Aplia Printed Access Card

ISBN-10: 1133225691  | ISBN-13: 9781133225690

List Price = $371.95  | College Bookstore Wholesale Price = $280.00

This Bundle Includes:

  • Contemporary Financial Management
    List Price = $359.95  | CengageBrain Price = $359.95  | College Bookstore Wholesale Price = $270.00
  • Aplia™, 1 term Printed Access Card
    List Price = $134.00  | College Bookstore Wholesale Price = $100.50


ePack: Printed Text + Aplia Instant Access

ISBN-10:  130559536X | ISBN-13:  9781305595361

List Price = $371.95  | CengageBrain Price = $371.95  | College Bookstore Wholesale Price = $280.00

This Bundle Includes:

  • Contemporary Financial Management
    List Price = $359.95  | CengageBrain Price = $359.95  | College Bookstore Wholesale Price = $270.00
  • Aplia™, 1 term 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

Instructor’s Resource CD-ROM  (ISBN-10: 1111528187 | ISBN-13: 9781111528188)

The IRCD includes such items as the Instructor’s Manual, Solutions Manual, Test Bank in MS Word format, our Test Bank software Examview and the Test Bank materials in Examview format, the PowerPoint slide package, and the Excel files. Prepared by the text authors, the Instructor’s Manual contains detailed solutions to the end-of-chapter questions and problems. A list at the end of the manual designates the topical coverage of each end-of-chapter problem in the text. ExamView Testing Software is an easy-to-use computerized testing program containing all of the questions in the test bank offering more than 1,800 multiple-choice questions and problems. This unique test bank is designed with the instructor in mind, and includes AACSB designations for each question and problem. The PowerPoint slides provide the text’s graphs and tables along with lecture notes and can be printed for use as transparency masters or acetates, and the Excel files, designated with an Excel icon, are designed to solve a wide variety of financial management problems; these models do not require previous experience with Excel.

Meet the Author

Author Bio

R. Charles Moyer

Charles Moyer is Professor of Finance and Entrepreneurship and Dean Emeritus of the College of Business at the University of Louisville, earned his BA in Economics from Howard University and his MBA and PhD in Finance and Managerial Economics from the University of Pittsburgh. Professor Moyer is Dean Emeritus and former holder of the GMAC Insurance Chair in Finance at the Babcock Graduate School of Management, Wake Forest University. He also has taught at the University of Houston, Lehigh University, and the University of New Mexico and spent a year at the Federal Reserve Bank of Cleveland and a year at the Department of Commerce in Washington. Professor Moyer has taught extensively abroad in Germany, France, and Russia. In addition to this text, Moyer has coauthored Managerial Economics, 13th edition (Cengage-South-Western, 2014). He has been published in many leading journals, is a member of the Board of Directors of Summit Biosciences, Capitala, and the Kentucky Seed Capital Fund. He has supplied cost of capital testimony in nearly 100 public utility rate cases.

James R. McGuigan

James R. McGuigan owns and operates his own numismatic investment firm. Prior to this business, he was Associate Professor of Finance and Business Economics in the School of Business Administration at Wayne State University. He also taught at the University of Pittsburgh and Point Park College. Dr. McGuigan received his undergraduate degree from Carnegie-Mellon University; his M.B.A. at the Graduate School of Business at the University of Chicago and his Ph.D. from the University of Pittsburgh. In addition to his interests in economics, he has co-authored several well-known books on financial management.

Ramesh P. Rao

Dr. Ramesh P. Rao is a professor and holds the Paul C. Wise Chair of Finance in the William S. Spears School of Business, Oklahoma State University. He earned a B.S. at the University of the Philippines, M.B.A. from the Asian Institute of Management and Ph.D. from Texas Tech University. He has coauthored over 60 journal articles in publications such as Journal of Business, Journal of Finance, Journal of Banking and Finance, Financial Management, and others. Rao’s research interests focus on mainstream corporate finance issues including compensation and board structure, corporate control, capital and ownership structure, information signaling and related areas. Rao was former program chair and president of the Southwestern Finance Association, and is also the coeditor of the Journal of Applied Finance, and a director of the Asian Finance Association. He has been recognized for his teaching and research excellence including the following awards: 2009 Southwestern Finance Association Best Paper in Corporate Finance Award, Richard W. Poole Research Excellence Award (2008-2009), Chandler-Frates & Reitz Teaching Excellence Award-MBA Program (OSU-Tulsa campus, 2008), Regents Distinguished Research Award (2007), and others.

William J. Kretlow

William J. Kretlow, formerly with Tenneco and Monsanto, joined the University of Houston faculty in 1971. Since 1977, Professor Kretlow has taught at the Stonier Graduate School of Banking of the American Bankers Association. He also has taught at Rice University and has received various teaching awards. In addition to coauthoring this text, he has published articles in the REVIEW OF BUSINESS AND ECONOMIC RESEARCH, THE JOURNAL OF THE AMERICAN SOCIETY FOR INFORMATION SCIENCE, and THE FINANCIAL REVIEW, among others. Professor Kretlow has advised various small and medium-sized companies on financial matters, served as an expert witness in a number of financial cases, and is experienced in the valuation of closely held businesses.