Nelson Higher Education

Higher Education

Financial Management: Theory & Practice, 15th Edition

  • Eugene F. Brigham
  • Michael C. Ehrhardt
  • ISBN-10: 130563229X
  • ISBN-13: 9781305632295
  • 1200 Pages | Hardcover
  • Previous Editions: 2014, 2011, 2008
  • COPYRIGHT: 2017 Published
Request a Copy for Review

Overview

About the Product

The only text that strikes a balance between solid financial theory and practical applications, Brigham/Ehrhardt’s FINANCIAL MANAGEMENT: THEORY AND PRACTICE, 15e equips your students with a thorough understanding of the essential concepts they need to develop and implement effective financial strategies. The book begins with a presentation of corporate finance fundamentals before progressing to discussions of specific techniques used to maximize the value of a firm. It also explores the recent financial and economic crises and the role of finance in the business world and in your students’ personal lives. With its relevant and engaging presentation, numerous examples, and emphasis on Excel usage, this text is the ideal choice for an introductory MBA course and serves as a complete reference tool for your students throughout their academic and business careers. As part of its comprehensive product package, MindTap Finance is avialable as an optional learning solution to support your course outcomes and to help your students become First in Finance.

Features

  • RELEVANT EXAMPLES REFLECT TODAY’S GLOBAL ECONOMIC ENVIRONMENT. Updated, timely real-world 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.

  • FLEXIBLE COVERAGE MAKES THE TEXT IDEAL FOR ONE-SEMESTER OR TWO-SEMESTER COURSES. Organized to address key concepts and essential topics within the first 17 chapters, the text ensures your students receive the coverage they need whether you teach a one-semester or two-semester course. Later chapters provide more advanced and expanded treatment of topics to build upon earlier material and increase student mastery of concepts.

  • 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

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.

Table of Contents

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.
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.
6: Risk and Return.
Web Extensions.
6A: Continuous Probability Distributions.
6B: Estimating Beta with a Financial Calculator.
7: Valuation of Stocks and Corporations.
Web Extensions.
7A: Derivation of Valuation Equations.
8: Financial Options and Applications in Corporate Finance.
9: The Cost of Capital.
Web Extensions.
9A: The Required Return Assuming Nonconstant Dividends and Stock.
Repurchases.
10: 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.
12: Corporate Valuation and Financial Planning.
13: Corporate Governance.
14: Distributions to Shareholders: Dividends and Repurchases.
15: Capital Structure Decisions.
Web Extensions 15A: Degree of Leverage.
16: Supply Chains and Working Capital Management.
Web Extensions.
16A: Secured Short-Term Financing.
17: Multinational Financial Management.
18: Public and Private Financing: Initial Offerings, Seasoned Offerings, and Investment Banks.
Web Extensions.
18A: Rights Offerings.
19: Lease Financing.
Web Extensions.
19A: Leasing Feedback.
19B: Percentage Cost Analysis.
19C: Leveraged Leases.
20: Hybrid Financing: Preferred Stock, Warrants, and Convertibles.
Web Extensions.
20A: Calling Convertible Issues.
21: Dynamic Capital Structures.
22: Mergers and Corporate Control.
Web Extensions.
22A: Projecting Consistent Debt and Interest Expenses.
23: Enterprise Risk Management.
24: Bankruptcy, Reorganization, and Liquidation.
Web Extensions.
24A: Multiple Discriminant Analysis.
25: Portfolio Theory and Asset Pricing Models.
26: Real Options.
Web Extensions.
26A: The Abandonment Real Option.
26B: Risk-Neutral Valuation.
27: Web Chapter: Providing and Obtaining Credit.
28: Web Chapter: Advanced Issues in Cash Management and Inventory Control.
29: Web Chapter: Pension Plan Management.
30: Web Chapter: Financial Management in Not-for-Profit Businesses.
APPENDIX A: Solutions to Self-Test Problems.
APPENDIX B: Answers to End-of-Problems.
APPENDIX C: Selected Equations.
APPENDIX D: Values of the Areas under the Standard Normal Distribution Function.
GLOSSARY.
NAME INDEX.
SUBJECT INDEX.

New to this edition

  • NEW DESIGN TRULY ENGAGES READERS. A refreshed, easier-to-read interior design makes the Fourteenth Edition of the popular FINANCIAL MANAGEMENT: THEORY & PRACTICE more accessible and student friendly than ever.
  • INCREASED CORPORATE GOVERNANCE COVERAGE IS INTEGRATED THROUGHOUT. Reflecting the latest headlines, up-to-date coverage is packed with real-world illustrations and gives students in-depth insight into this key topic.
  • CHAPTERS OFFER EXPANDED EMPHASIS ON FREE CASH FLOWS (FCF). More detailed coverage of FCF is incorporated into chapters 13, 14, and 21.
  • TEST BANK MATERIAL IS TAGGED TO TIER I AND TIER II STANDARDS TO HELP MAXIMIZE YOUR COURSE SUCCESS. Ensuring students are well prepared for real-world practice, all Test Bank content is now tagged according to Tier I (Business Program Interdisciplinary Learning Outcomes) and Tier II (Finance-specific) standards, topic, Bloom’s Taxonomy, and difficulty level to track course or institution learning outcomes.

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

Web Site  (ISBN-10: 1305632451 | ISBN-13: 9781305632455)
Cengage Testing, powered by Cognero® Instant Access  (ISBN-10: 1305632478 | ISBN-13: 9781305632479)

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 Sample Chapter Instant Access  (ISBN-10: 1305881257 | ISBN-13: 9781305881259)
MindTap Finance, 1 term (6 months) Instant Access for Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1305632338 | ISBN-13: 9781305632332)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th 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) Printed Access Card  (ISBN-10: 1305632346 | ISBN-13: 9781305632349)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th 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 Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1305632354 | ISBN-13: 9781305632356)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th 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) Printed Access Card  (ISBN-10: 1305632362 | ISBN-13: 9781305632363)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th 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.

CengageNOW, 2 terms (12 months) Instant Access  (ISBN-10: 1305632435 | ISBN-13: 9781305632431)

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 Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1337899925 | ISBN-13: 9781337899925)

MindTapV2.0 Finance for Brigham/Ehrhardt's Financial Management: Theory & Practice, 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. In addition to all the great current features, MindTapV2.0 now has: • Improved End-of-Chapter algorithmic homework experience that provides instant feedback for all homework and practice assignments • Self-authoring feature that allows a user to easily create their own auto-gradable homework or practice questions • Improved performance measurement analytics ¬– easily track individual student and/or overall class engagement, scores, and outcomes. 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 Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1337899941 | ISBN-13: 9781337899949)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th 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.

Instructor's Edition  (ISBN-10: 1305632303 | ISBN-13: 9781305632301)

Student Supplements

Cengage Testing, powered by Cognero® Instant Access  (ISBN-10: 1305632478 | ISBN-13: 9781305632479)
MindTap Finance, 1 term (6 months) Instant Access for Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1305632338 | ISBN-13: 9781305632332)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th Edition helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App. Read or listen to the book 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. Whether you have more work to do or are ahead of the curve, you’ll know where to focus efforts. Access study tools, including ConceptClips and Problem Walk-Throughs. The MindTap Green Dot will charge your confidence along the way. MINDTAP HELPS YOU OWN YOUR PROGRESS. MAKE THE TEXT 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 you organize.

MindTap Finance, 1 term (6 months) Printed Access Card  (ISBN-10: 1305632346 | ISBN-13: 9781305632349)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th Edition helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App. Read or listen to the book 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. Whether you have more work to do or are ahead of the curve, you’ll know where to focus efforts. Access study tools, including ConceptClips and Problem Walk-Throughs. 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, gather everything you’ve flagged into a guide you organize.

MindTap Finance, 2 terms (12 months) Instant Access for Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1305632354 | ISBN-13: 9781305632356)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th Edition helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App. Read or listen to the book 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. Whether you have more work to do or are ahead of the curve, you’ll know where to focus efforts. Access study tools, including ConceptClips and Problem Walk-Throughs. 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, gather everything you’ve flagged into a guide you organize.

MindTap Finance, 2 terms (12 months) Printed Access Card  (ISBN-10: 1305632362 | ISBN-13: 9781305632363)

MindTap Finance for Brigham/Ehrhardt’s Financial Management: Theory & Practice, 15th Edition helps you learn on your terms. INSTANT ACCESS IN YOUR POCKET. Take advantage of the MindTap Mobile App. Read or listen to the book 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. Whether you have more work to do or are ahead of the curve, you’ll know where to focus efforts. Access study tools, including ConceptClips and Problem Walk-Throughs. 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, gather everything you’ve flagged into a guide you organize.

CengageNOW, 1 term (6 months) Instant Access  (ISBN-10: 1337098086 | ISBN-13: 9781337098083)
CengageNOW, 2 terms (12 months) Instant Access  (ISBN-10: 1305632435 | ISBN-13: 9781305632431)

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 Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1337899925 | ISBN-13: 9781337899925)

MindTapV2.0 Finance for Brigham/Ehrhardt's Financial Management: Theory & Practice, 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 Brigham/Ehrhardt's Financial Management: Theory & Practice  (ISBN-10: 1337899941 | ISBN-13: 9781337899949)

MindTapV2.0 Finance for Brigham/Ehrhardt's Financial Management: Theory & Practice, 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.