Nelson Higher Education

Higher Education

Financial Management: Theory and Practice, 2nd Edition

  • Eugene F. Brigham
  • Michael C. Ehrhardt
  • Jerome Gessaroli
  • Richard R. Nason
  • ISBN-10: 0176517308
  • ISBN-13: 9780176517304
  • 0 Pages | Hardcover
  • Previous Editions: 2011, 2008, 2005
  • COPYRIGHT: 2014 Published
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Overview

About the Product

The Brigham name in Finance provides one of the most widely recognized Author brands in higher education publishing. The Brigham series of textbooks has been a mainstay in the Finance discipline for decades and millions of students have had their first exposure to finance through one of his textbooks. In addition to name and product recognition, the Brigham books rank extremely high in terms of reliability, accuracy and thoroughness. Financial Management: Theory and Practice, Second Canadian edition is a tested, trusted product that has continued to evolve to meet the needs of the marketplace. The book is aimed at the undergraduate Corporate Finance course and can straddle the MBA market. With a strong emphasis on Valuation as a central theme, the book has an even balance between the theoretical and the applied approaches. Throughout the book, the importance of free cash flow is emphasized and linked to the firm’s overall value. The book has been thoroughly adapted for Canadian courses and includes a series of Web extensions that can be used to teach the book to a higher level audience as well as Excel integration to assist with courses that teach finance with the help of Excel models. Additionally, several new end-of-chapter intermediate or challenging problems have been added to every chapter. The book has sufficient coverage so as to be used over one or two terms.

Features

  • An Editorial Advisory Board made up of Canadian university professors provided guidance and direction to ensure the text meets the needs of Canadian educators and students.

  • With corporate ethics and governance issues making headlines throughout the developed economies, the text discusses ethical abuses in Chapter 1 and elsewhere in the book. In addition, Chapter 23 addresses corporate governance and the actions both firms and governmental units can take to minimize such events in the future.

  • Many chapters have PDF web “appendices” that provide more detailed coverage of topics that were addressed in the chapter. An instructor can use any of the extensions to provide deeper coverage of material.

  • Each chapter (except for ch.1) includes Excel Tool Kits to enhance student proficiency with spreadsheets. These Tool Kit models include explanations and screen shots that show students how to use many of the features and functions of Excel

  • Each chapter (except ch.1) has a “Build a Model” problem where students start with a partially completed spreadsheet and the structure guides the student through the problem and makes it easier to grade the work.

  • Several new end-of-chapter intermediate or challenging problems have been added to every chapter.

  • Tutorials on the most common financial calculators are also now provided on the book’s website.

  • Throughout the text we have embedded a number of vignettes discussing the challenges that small businesses face when applying the financial concepts and tools being discussed.

  • A number of vignettes throughout the text provide interesting real-life examples of how the concepts discussed in the chapter at hand are important in today’s business environment.

  • Students learn specific concepts and understand particular numerical examples best if they work with illustrative

  • We have created Excel Tool Kits to enhance student proficiency with spreadsheets. Created for each chapter (except Chapter 1), these Tool Kit models include explanations and screen shots that show students how to use many of the features and functions of Excel. We have integrated the Tool Kit models into the text so that many figures and tables in the textbook are drawn right from the Excel model, including the Excel row and column headings so that students can see exactly how the problem is worked in Excel. The Tool Kits are available on the textbook’s Web site.

About the Author

Eugene F. Brigham

Dr. Eugene F. Brigham is Graduate Research Professor Emeritus at the University of Florida, where he has taught since 1971. He received his MBA 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. A former president of the Financial Management Association, he has written many journal articles on the cost of capital, capital structure and other aspects of financial management. He has authored or co-authored 10 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. In addition to his academic writing, Dr. Brigham continues to teach, consult and complete research. 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 Corp., and he has testified as an expert witness in numerous electric, gas and telephone rate cases at both federal and state levels. Dr. Brigham 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.

Michael C. Ehrhardt

Dr. Michael C. Ehrhardt is a Professor Emeritus and current faculty member in two Executive MBA programs at the University of Tennessee. He received a B.S. in Civil Engineering and a B.A. in Economics 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, master's and doctoral levels in the areas of investments, corporate finance and capital markets. He has directed and served on numerous dissertation committees. 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. His honors include the Allen G. Keally Outstanding Teacher Award, the Tennessee Organization of MBA Students Outstanding Faculty Award, the College of Business Administration Research & Teaching Award and the John B. Ross Outstanding Teaching Award in the College of Business. An author and co-author of several books addressing various areas of finance, Dr. Ehrhardt focuses much of his research 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.

Jerome Gessaroli

Mr. Gessaroli brings to BCIT’s Financial Management Department over 15 years of industry experience in both the high technology and financial services sectors. For 10 years, he worked for western Canada’s largest industrial research and development firm. In 1996, Mr. Gessaroli saw an opportunity to apply his business knowledge in the financial industry. Mr Gessaroli obtained his license to trade securities and options working for two established local investment dealers. Over this time he worked with individuals and companies to manage their investment and pension accounts. In 2000, he joined the corporate finance department of an investment dealer helping to vet and structure financing for small growing companies.

Richard R. Nason

Dr. Nason is an Associate Professor of Finance in the Faculty of Management at Dalhousie University, where he teaches corporate finance, capital budgeting, investments and derivatives. He has been voted one of the MBA Professors of the Year for the 2002, 2003 and 2005 school years. Dr. Nason has an extensive background in risk management and the derivatives industry. Dr. Nason has a M.Sc. in Physics from the University of Pittsburgh and a MBA and a Ph.D. in Finance from the Richard Ivey Business School at the University of Western Ontario. He is a Chartered Financial Analyst charterholder, Board Member for the Atlantic Canada Financial Analyst Society and Bridgeway Academy, and is a member of Dalhousie’s Pension Advisory Committee.

Table of Contents

Part One: Fundamental Concepts
Chapter 1: An Overview of Financial Management and the Financial Environment
Chapter 2: Financial Statements, Cash Flow, and Taxes
Chapter 3: Analysis of Financial Statements
Chapter 4: Time Value of Money
Chapter 5: Financial Planning and Forecasting Financial Statements

Part Two: Securities and Their Valuation
Chapter 6: Bonds, Bond Valuation, and Interest Rates
Chapter 7: Risk, Return, and the Capital Asset Pricing Model
Chapter 8: Stocks, Stock Valuation, and Stock Market Equilibrium

Part Three: Projects and Their Valuation
Chapter 9: The Cost of Capital
Chapter 10: The Basics of Capital Budgeting: Evaluating Cash Flows
Chapter 11: Cash Flow Estimation and Risk Analysis

Part Four: Financing Activities
Chapter 12: Capital Structure Decisions
Chapter 13: Distributions to Shareholders: Dividends and Repurchases
Chapter 14: Initial Public Offerings, Investment Banking, and Financial Restructuring
Chapter 15: Lease Financing
Chapter 16: Capital Market Financing: Hybrid and Other Securities
Chapter 17: Working Capital Management and Short-Term Financing
Chapter 18: Current Asset Management

Part Five: Derivative Techniques
Chapter 19: Financial Options and Applications in Corporate Finance
Chapter 20: Decision Trees, Real Options, and Other Capital Budgeting Topics
Chapter 21: Derivatives and Risk Management

Part Six: Special Topics
Chapter 22: International Financial Management
Chapter 23: Corporate Valuation, Value-Based Management, and Corporate Governance
Chapter 24: Mergers, Acquisitions, and Restructuring

Appendices
Appendix A Answers to Selected End-of-Chapter Problems
Appendix B Selected Equations and Data
Appendix C Values of the Areas under the Standard Normal Distribution Function

New to this edition

  • Every chapter starts with a context-setting, real-world example of the material about to be covered. This introduction indicates to students how the material fits in with today’s financial environment and have been updated to include the latest changes in the financial environment and financial theory
  • The text emphasizes valuation and each chapter includes a newly re-designed corporate valuation box. These boxes explicitly show how a chapter’s material relates to the corporation valuation model, by highlighting the specific parts of the model that are relevant to the chapter.

Supplements

All supplements have been updated in coordination with the Main title.
Please see Main title page for new to this edition information.

Instructor Supplements

Aplia 6-months Instant Access for Brigham, Financial Management: Theory and Practice, Second Canadian Edition  (ISBN-10: 017667215X | ISBN-13: 9780176672157)
Aplia 6-months Printed Access Card for Brigham, Financial Management: Theory and Practice, Second Canadian Edition  (ISBN-10: 0176672141 | ISBN-13: 9780176672140)
Aplia 12-months Instant Access for Brigham, Financial Managment  (ISBN-10: 0176672168 | ISBN-13: 9780176672164)
Aplia 12-months Printed Access Code for Brigham, Financial Management, Second Canadian Edition  (ISBN-10: 0176672176 | ISBN-13: 9780176672171)
Instructor's Resource CD for Financial Management: Theory and Practice  (ISBN-10: 0176541837 | ISBN-13: 9780176541835)

Key instructor ancillaries are provided on the Instructor’s Resource CD (ISBN 978-0-17-654183-5), giving instructors the ultimate tool for customizing lectures and presentations. (Downloadable Web versions are also available at www.nelson.com/brigham2ce or may be accessed via NELSONbrain.com.

Student Supplements

Aplia 6-months Instant Access for Brigham, Financial Management: Theory and Practice, Second Canadian Edition  (ISBN-10: 017667215X | ISBN-13: 9780176672157)
Aplia 6-months Printed Access Card for Brigham, Financial Management: Theory and Practice, Second Canadian Edition  (ISBN-10: 0176672141 | ISBN-13: 9780176672140)
Aplia 12-months Instant Access for Brigham, Financial Managment  (ISBN-10: 0176672168 | ISBN-13: 9780176672164)
Aplia 12-months Printed Access Code for Brigham, Financial Management, Second Canadian Edition  (ISBN-10: 0176672176 | ISBN-13: 9780176672171)