Nelson Higher Education

Higher Education

Principles of Finance, 5th Edition

  • Scott Besley
  • Eugene F. Brigham
  • ISBN-10: 1111527369
  • ISBN-13: 9781111527365
  • 816 Pages | Hardcover
  • Previous Editions: 2009, 2006, 2003
  • COPYRIGHT: 2012 Published
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About the Product

Give your students a strong foundation in contemporary finance using the latest PRINCIPLES OF FINANCE, 5E by leading finance authors Besley and Brigham. This dynamic survey text addresses today's most relevant financial concepts as students examine current financial markets and institutions, investments, and managerial finance. An ideal choice for corporate finance topics, this edition is more practical than ever before. New Learning Objectives, Chapter Summaries, and in-chapter Self Tests ensure readers fully understanding concepts, while revised coverage further clarifies the presentation of time value of money and other complex concepts. When relevant, this edition now discusses the impact of the 2007-2009 financial market meltdown on finance today and clearly connects topics to students' personal finance decisions. Students see how concepts influence both immediate and long-term common financial decisions. Students learn to use spreadsheets for financial decisions and financial problem solving. The book's modular format allows you to present concepts in the order that best suits your course. The book begins by discussing principles of financial systems and business organizations, then addresses valuation concepts and corporate decision making and concludes with investment fundamentals.Count on PRINCIPLES OF FINANCE, 5E to offer the diversity of coverage and practical strengths your students need for success.


  • REVISED "CHAPTER PRINCIPLES--PERSONAL FINANCE" SECTIONS HELP STUDENTS BETTER UNDERSTAND HOW CONCEPTS APPLY TO PERSONAL LIVES. This fresh "Chapter Principles-Personal Finance" section in each chapter relates the chapter's concepts to contemporary personal financial decisions, such as evaluating a car loan. Students better understand how the material they're learning applies to their lives.

  • CONTINUED EMPHASIS ON SPREADSHEETS ENHANCES STUDENTS' SKILLS. Additional instruction on spreadsheets within each relevant chapter as well as throughout chapter appendices emphasizes how best to use this critical financial tool. A special end-of-book tutorial demonstrates how to maximize spreadsheet functions to solve financial problems, particularly those related to Time Value of Money.

  • WEALTH OF ETHICAL DILEMMAS REFLECTS TODAY'S CHALLENGES. A variety of practical ethical dilemmas throughout this edition emphasizes critical ethical questions prompted by actual recent world events. These ethical challenges prepare students for conflicts and questions facing individuals and corporations today.

  • "MANAGERIAL PERSPECTIVES" DEMONSTRATE THE IMPACT OF FINANCE TODAY. Each chapter captures students' attention from the first page with an intriguing opening Managerial Perspectives that details actual events related to the chapter's content. Clear, engaging prose demonstrates the impact of finance in today's world and in recent news.

  • SOLID DISCUSSION OF INTEREST RATES PREPARES FUTURE MANAGERS AND FINANCE PROFESSIONALS. Discussion of interest rates in Chapter 5 closely examines factors that affect interest rates, forecasting interest rates, and how interest rates are determined in today's financial markets. Students gain the understanding they need for future success.

About the Author

Scott Besley

Dr. Scott Besley is associate professor in the department of finance at the University of South Florida. He earned his D.B.A. and M.B.A. degrees from Florida State University. A well-respected author and instructor, Dr. Besley has published numerous research articles in various academic journals and has co-authored two of the leading textbooks in corporate finance that are used at universities around the world. His research interests include areas of corporate finance, working capital management, governance and investment anomalies. A frequently requested presenter at professional conferences, Dr. Besley is actively involved in numerous finance and professional organizations. When he is not teaching or pursuing research interests, he is heavily involved in supporting his local community.

Eugene F. Brigham

Dr. Eugene F. Brigham is a graduate research professor emeritus at the University of Florida, where he has taught since 1971. He received his M.B.A. 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. He has also 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 adventures such as biking through Alaska.

Table of Contents

1 An Overview of Finance.
2 Financial Assets (Instruments).
3 Financial Markets and the Investment Banking Process.
4 Financial Intermediaries and the Banking System.
5 The Cost of Money (Interest Rates).
6 Business Organizations and the Tax Environment.
Appendix 6A: 2011 Tax Rate Schedule.
7 Analysis of Financial Statements.
8 Financial Planning and Control.
Appendix 8A: Projected Financial Statements--Including Financing Feedbacks.
9 The Time Value of Money.
Appendix 9A: Generating an Amortization Schedule--Financial Calculator Solution and Spreadsheet Solution.
10 Valuation Concepts.
11 Risk and Rates of Return.
12 The Cost of Capital.
13 Capital Budgeting.
Appendix 13A: Depreciation.
Appendix 13B: Using a Spreadsheet to Compute NPV and IRR.
14 Capital Structure and Dividend Policy Decisions.
15 Working Capital Management.
16 Investment Concepts.
17 Security Valuation and Selection.
Appendix A Using Spreadsheets to Solve Financial Problems.
Appendix B Solutions to Self-Test Problems.
Appendix C Answers to End-of-Chapter Problems.
Appendix D Selected Equations.

New to this edition

  • NEW LEARNING OBJECTIVES AND CHAPTER SUMMARIES GUIDE STUDY AND REVIEW. Concise, clear Learning Objectives now at the beginning of each chapter and the end-of-chapter summaries for each chapter highlight the most important concepts that students should learn from the material and connect concepts to the learning objectives to which they apply.
  • NEW DISCUSSIONS REVIEW THE IMPACT OF 2007-2009 FINANCIAL MARKET MELTDOWNS. Where appropriate throughout this edition, the authors discuss the ongoing ramifications of the 2007-2009 financial markets meltdown.
  • NEW SELF-TEST PROBLEMS ENSURE STUDENT COMPREHENSION AS THEY PROGRESS. Focused Self-Test Problems now appear where appropriate within the body of each chapter to allow students to check their progress before moving ahead.
  • REVISED PRESENTATION OF TIME VALUE OF MONEY STRENGTHENS STUDENT UNDERSTANDING OF THIS KEY FINANCIAL CONCEPT. The authors have revised and further clarified the important presentation of Time Value of Money (Ch. 9) to further facilitate and ensure student understanding of this important concept.
  • ENHANCED DISCUSSIONS ENSURE THAT EVEN THE MOST COMPLEX CONCEPTS ARE EASIER FOR STUDENTS TO GRASP. The authors have modified the discussions throughout this edition to ensure that today's most important financial concepts are presented in a manner that's simple for students to understand. The authors have taken special care to clarify the book's more complex concepts.


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

Instructor Supplements

Instructor's Resource CD-ROM  (ISBN-10: 1133191126 | ISBN-13: 9781133191124)

Place key resources at your fingertips with this all-in-one, time-saving CD. Instantly access the Instructor's Manual with suggestions for using learning features and supplements as well as tips for using ethical dilemmas and references to related real situations. You can also access the Test Bank in Word with numerous conceptual as well as financial calculation questions labeled by level of difficulty. Easily add, edit, delete, or reorganize test items with ExamView® test creation software. You can also bring lectures to life with PowerPoint® slides that highlight key chapter features.