Nelson Higher Education

Higher Education

Corporate Finance: A Focused Approach, 6th Edition

  • Michael C. Ehrhardt
  • Eugene F. Brigham
  • ISBN-10: 1305637100
  • ISBN-13: 9781305637108
  • 840 Pages | Hardcover
  • Previous Editions: 2014, 2011, 2009
  • COPYRIGHT: 2017 Published
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Overview

About the Product

Focus on the financial concepts, skills, and technological applications that are most critical for MBA students in today’s workplace with Ehrhardt/Brigham’s CORPORATE FINANCE: A FOCUSED APPROACH 6E. The text provides an in-depth treatment of essential corporate finance topics within a streamlined presentation that you can complete in a single semester. With its relevant and engaging presentation and numerous examples, your students will learn the latest financial developments as they also learn how to maximize a firm’s value in today’s changing business world. Students will master the many features and functions of spreadsheets with chapter Excel® Tool Kits, Build a Model problems, and Mini Cases that encourage “what-if” analysis on a real-time basis. As part of its comprehensive product package, Ehrhardt/Brigham’s CORPORATE FINANCE: A FOCUSED APPROACH 6E includes MindTap Finance as an optional learning solution that complements the book’s focused presentation of corporate finance fundamentals, support your course needs and outcomes, and help your students become “First in Finance”.

Features

  • PRACTICAL APPLICATION OF THEORY AND TRENDS HIGHLIGHTS THE ROLE OF FINANCE TODAY. The authors clearly illustrate the application of concepts and theories throughout the book’s proven presentation, wealth of actual business examples, thought-provoking problem sets, and integrated mini-cases. Comprehensive Mini Cases at the end of each chapter further demonstrate applications with corresponding PowerPoint slides and spreadsheets as well as solutions on the instructor’s password-protected companion site.

  • RELEVANT EXAMPLES THAT REFLECT TODAY’S GLOBAL ECONOMIC ENVIRONMENT. Updated, timely real examples throughout almost every chapter demonstrate the impact of today’s financial crisis in all areas of business and life. “Global Economic Crisis” boxes in many chapters highlight specific finance issues related to today’s economic environment.

  • EXCEL TOOL KITS ENSURE STUDENT SPREADSHEET PROFICIENCY. Actual screen captures from the Excel Tool Kit models that correspond with each chapter appear within this edition, allowing students to clearly and more closely follow the models in analysis.

  • END-OF-CHAPTER SPREADSHEET PROBLEMS GUIDE STUDENTS THROUGH BUILDING A MODEL. Partially completed, end-of-chapter spreadsheets contain financial data and instructions on how to “build a model.” This structure guides the student through the problem, minimizes unnecessary typing and data entry, and makes it easy to grade the work because all student answers appear in the same location on the spreadsheet.

  • UNMATCHED AUTHOR EXPERTISE ENSURES CLEAR, CONTEMPORARY APPROACH. This premier authorship team combines the extensive teaching background and more than 30 years of text writing experience of Dr. Gene Brigham with the contemporary scholarship and practical, professional expertise of Dr. Mike Ehrhardt. Together, these authors deliver a consistent, accurate and innovative approach that will keep your students first in finance.

About the Author

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.

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.

Table of Contents

PART I: FUNDAMENTAL CONCEPTS OF CORPORATE FINANCE.
1. An Overview of Financial Management and the Financial Environment.
Web Extensions 1A: An Overview of Derivatives; 1B: A Closer Look at the Stock Markets
2. Financial Statements, Cash Flow, and Taxes.
Web Extensions 2A: The Federal Income Tax System for Individuals.
3. Analysis of Financial Statements.
PART II: FIXED INCOME SECURITIES.
4. Time Value of Money.
Web Extensions 4A: The Tabular Approach; 4B: Derivation of Annuity Formulas; 4C: Continuous Compounding.
5. Bonds, Bond Valuation, and Interest Rates.
Web Extensions 5A: A Closer Look at Zero Coupon Bonds; 5B: A Closer Look at TIPS: Treasury Inflation Protected Securities; 5C: A Closer Look at Bond Risk: Duration; 5D: The Pure Expectations Theory and Estimation of Forward Rates.
PART III: STOCKS AND OPTIONS.
6. Risk, Return, and the Capital Asset Pricing Model.
Web Extensions 6A: Continuous Probability Distributions; 6B: Estimating Beta with a Financial Calculator.
7. Stocks, Stock Valuation, and Stock Market Equilibrium.
Web Extensions 7A: Derivation of Valuation Equations.
8. Financial Options and Applications in Corporate Finance.
PART IV: PROJECTS AND THEIR VALUATION.
9. The Cost of Capital.
Web Extensions 9A: The Required Return Assuming Nonconstant Dividends and Stock Repurchases.
10. The Basics of Capital Budgeting: Evaluating Cash Flows.
Web Extensions 10A: The Accounting Rate of Return (ARR).
11. Cash Flow Estimation and Risk Analysis.
Web Extensions 11A: Certainty Equivalents and Risk-Adjusted Discount Rates.
PART V: CORPORATE VALUATION AND GOVERNANCE.
12. Financial Planning and Forecasting Financial Statements.
Web Extensions 12A: Advanced Techniques for Forecasting Financial Statements Accounts.
13. Corporate Valuation, Value-Based Management and Corporate Governance.
PART VI: CASH DISTRIBUTIONS AND CAPITAL STRUCTURE.
14. Distributions to Shareholders: Dividends and Repurchases.
15. Capital Structure Decisions.
Web Extensions 15A: Degree of Leverage.
PART VII: MANAGING GLOBAL OPERATIONS.
16. Working Capital Management.
Web Extensions 16A: Secured Short-Term Financing.
17. Multinational Financial Management.
APPENDIXES.
A. Solutions to Self-Test Problems.
B. Answers to End-of-Chapter Problems.
C. Selected Equations and Data.
D. Values of the Areas under the Standard Normal Distribution Function.
Glossary.
Name Index.
Subject Index.

New to this edition

  • YouSeeU Team Case Assignments: Students will have an online collaborative work space to do group projects that involve case studies. They will be able to access project details, communicate within their group, and submit a final project for the instructor to grade all within the YouSeeU app.

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

Cengage Testing, powered by Cognero® Instant Access  (ISBN-10: 1305637313 | ISBN-13: 9781305637313)

Cengage Learning Testing Powered by Cognero® is a flexible, online system that allows you to: import, edit, and manipulate content from the text’s test bank or elsewhere, including your own favorite test questions; create multiple test versions in an instant; and deliver tests from your LMS, your classroom, or wherever you want.

MindTap Finance, 1 term (6 months) Printed Access Card  (ISBN-10: 130563716X | ISBN-13: 9781305637160)

MindTap Finance for Ehrhardt/Brigham's Corporate Finance: A Focused Approach, 6th Edition is the digital learning solution that powers students from memorization to mastery. It gives you complete control of your course—to provide engaging content, to challenge every individual, and to build their confidence. Empower students to accelerate their progress with MindTap. MindTap: Powered by You. MindTap gives you complete ownership of your content and learning experience. Customize the interactive syllabi, emphasize the most important topics, and add your own material or notes in the eBook.

MindTap Finance, 1 term (6 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1305637151 | ISBN-13: 9781305637153)

MindTap Finance for Ehrhardt/Brigham's Corporate Finance: A Focused Approach, 6th Edition is the digital learning solution that powers students from memorization to mastery. It gives you complete control of your course—to provide engaging content, to challenge every individual, and to build their confidence. Empower students to accelerate their progress with MindTap. MindTap: Powered by You. MindTap gives you complete ownership of your content and learning experience. Customize the interactive syllabi, emphasize the most important topics, and add your own material or notes in the eBook.

MindTap Finance, 2 terms (12 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1337697532 | ISBN-13: 9781337697538)

MindTap Finance for Ehrhardt/Brigham’s Corporate Finance: A Focused Approach, 6th is the digital learning solution that helps instructors engage and transform today’s students into critical thinkers. Through paths of dynamic assignments and applications that you can personalize, real-time course analytics and an accessible reader, MindTap helps you turn cookie cutter into cutting edge, apathy into engagement, and memorizers into higher-level thinkers.

CengageNOW, 1 term (6 months) Instant Access  (ISBN-10: 1305637216 | ISBN-13: 9781305637214)

With its engaging learning and assessment tools, CengageNOW supports the entire student workflow, from motivation to mastery. For instructors, CengageNOW provides control and customization with the opportunity to tailor the learning experience to improve outcomes.

CengageNOW, 1 term (6 months) Printed Access Card  (ISBN-10: 1305637224 | ISBN-13: 9781305637221)

With its engaging learning and assessment tools, CengageNOW supports the entire student workflow, from motivation to mastery. For instructors, CengageNOW provides control and customization with the opportunity to tailor the learning experience to improve outcomes.

MindTapV2.0 Finance, 1 term (6 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1337899887 | ISBN-13: 9781337899888)

MindTap Finance for Ehrhardt/Brigham's Corporate Finance: A Focused Approach, 6th Edition is the digital learning solution that powers students from memorization to mastery. It gives you complete control of your course—to provide engaging content, to challenge every individual, and to build their confidence. Empower students to accelerate their progress with MindTap. MindTap: Powered by You. MindTap gives you complete ownership of your content and learning experience. Customize the interactive syllabi, emphasize the most important topics, and add your own material or notes in the eBook.

MindTapV2.0 Finance, 2 terms (12 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1337899895 | ISBN-13: 9781337899895)

MindTap Finance for Ehrhardt/Brigham’s Corporate Finance: A Focused Approach, 6th is the digital learning solution that helps instructors engage and transform today’s students into critical thinkers. Through paths of dynamic assignments and applications that you can personalize, real-time course analytics and an accessible reader, MindTap helps you turn cookie cutter into cutting edge, apathy into engagement, and memorizers into higher-level thinkers.

Instructor's Edition  (ISBN-10: 1305637119 | ISBN-13: 9781305637115)

Student Supplements

MindTap Finance, 1 term (6 months) Printed Access Card  (ISBN-10: 130563716X | ISBN-13: 9781305637160)

MindTap Finance for Ehrhardt/Brigham’s Corporate Finance: A Focused Approach, 6th Edition helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App. Read or listen to the text and study with the aid of instructor notifications, flashcards, and practice quizzes. MINDTAP HELPS YOU GEAR UP FOR ULTIMATE SUCCESS. Track your scores and stay motivated toward goals. Study tools include ConceptClips and Problem Walk-Throughs. You'll stay engaged with real-world, self-reflective tasks in the “Why This is Important to Me” feature that introduces each chapter as well as realistic assignments in the “Assignments” portion of each chapter’s Learning Path. MINDTAP HELPS YOU MAKE THE TEXTBOOK YOURS. No one knows what works for you better than you. Highlight key text, add notes, and create custom flashcards. When it’s time to study, gather everything you’ve flagged into a guide.

MindTap Finance, 1 term (6 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1305637151 | ISBN-13: 9781305637153)

MindTap Finance for Ehrhardt/Brigham’s Corporate Finance: A Focused Approach, 6th Edition helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App. Read or listen to the text and study with the aid of instructor notifications, flashcards, and practice quizzes. MINDTAP HELPS YOU GEAR UP FOR ULTIMATE SUCCESS. Track your scores and stay motivated toward your goals. Study tools include ConceptClips and Problem Walk-Throughs. You'll stay engaged with real-world, self-reflective tasks in the “Why This is Important to Me” feature that introduces each chapter as well as realistic assignments in the “Assignments” portion of each chapter’s Learning Path. MINDTAP HELPS YOU MAKE THE TEXTBOOK YOURS. No one knows what works for you better than you. Highlight key text, add notes, and create custom flashcards. When it’s time to study, gather everything you’ve flagged into a guide.

MindTap Finance, 2 terms (12 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1337697532 | ISBN-13: 9781337697538)

MindTap Finance for Ehrhardt/Brigham’s Corporate Finance: A Focused Approach, 6th provides you with the tools you need to better manage your limited time – you can complete assignments whenever and wherever you are ready to learn with course material specially customized for you by your instructor and streamlined in one proven, easy-to-use interface. With an array of tools and apps – from note taking to flashcards -- you’ll get a true understanding of course concepts, helping you to achieve better grades and setting the groundwork for your future courses. Access to this product is valid for 12 months of usage.

CengageNOW, 1 term (6 months) Instant Access  (ISBN-10: 1305637216 | ISBN-13: 9781305637214)

Have the tools you need to be successful -- A variety of tools are available in CengageNOW™, all combined in one easy-to-use resource designed to improve your grades. Some resources get you prepared for class and help you succeed on homework, and others show you specific areas where you can work to improve. This access code entitles you to 1 course enrollment. The duration of the code is course length + 14 days.

CengageNOW, 1 term (6 months) Printed Access Card  (ISBN-10: 1305637224 | ISBN-13: 9781305637221)

Have the tools you need to be successful -- A variety of tools are available in CengageNOW™, all combined in one easy-to-use resource designed to improve your grades. Some resources get you prepared for class and help you succeed on homework, and others show you specific areas where you can work to improve. This access code entitles you to 1 course enrollment. The duration of the code is course length + 14 days.

MindTapV2.0 Finance, 1 term (6 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1337899887 | ISBN-13: 9781337899888)

MindTapV2.0 Finance for Ehrhardt/Brigham's Corporate Finance: A Focused Approach, helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App to learn on your terms. Read or listen to textbooks and study with the aid of instructor notifications, flashcards and practice quizzes. MINDTAP HELPS YOU CREATE YOUR OWN POTENTIAL. GEAR UP FOR ULTIMATE SUCCESS. Track your scores and stay motivated toward your goals. Whether you have more work to do or are ahead of the curve, you’ll know where you need to focus your efforts. And the MindTap Green Dot will charge your confidence along the way. MINDTAP HELPS YOU OWN YOUR PROGRESS. MAKE YOUR TEXTBOOK YOURS. No one knows what works for you better than you. Highlight key text, add notes and create custom flashcards. When it’s time to study, everything you’ve flagged or noted can be gathered into a guide you can organize.

MindTapV2.0 Finance, 2 terms (12 months) Instant Access for Ehrhardt/Brigham's Corporate Finance: A Focused Approach  (ISBN-10: 1337899895 | ISBN-13: 9781337899895)

MindTapV2.0 Finance for Ehrhardt/Brigham's Corporate Finance: A Focused Approach, helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App to learn on your terms. Read or listen to textbooks and study with the aid of instructor notifications, flashcards and practice quizzes. MINDTAP HELPS YOU CREATE YOUR OWN POTENTIAL. GEAR UP FOR ULTIMATE SUCCESS. Track your scores and stay motivated toward your goals. Whether you have more work to do or are ahead of the curve, you’ll know where you need to focus your efforts. And the MindTap Green Dot will charge your confidence along the way. MINDTAP HELPS YOU OWN YOUR PROGRESS. MAKE YOUR TEXTBOOK YOURS. No one knows what works for you better than you. Highlight key text, add notes and create custom flashcards. When it’s time to study, everything you’ve flagged or noted can be gathered into a guide you can organize.