Nelson Higher Education

Higher Education

Fundamentals of Financial Management, 14th Edition

  • Eugene F. Brigham
  • Joel F. Houston
  • ISBN-10: 1285867971
  • ISBN-13: 9781285867977
  • 832 Pages | Hardcover
  • Previous Editions: 2013, 2010, 2007
  • COPYRIGHT: 2016 Published
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Overview

About the Product

With the same contemporary approach and dynamic examples that made previous editions so popular, this fully revised Fourteenth Edition of FUNDAMENTALS OF FINANCIAL MANAGEMENT continues to provide students with a focused understanding of today's corporate finance and financial management. This market-leading text offers a unique balance of clear concepts, contemporary theory, and practical applications in order to help students understand the concepts and reasons behind corporate budgeting, financing, working capital decision making, forecasting, valuation, and Time Value of Money (TVM). Offering the most cutting-edge coverage available, the Fourteenth Edition includes discussions of the federal debt, the ongoing recovery of financial markets, and the European debt crisis. Numerous practical examples, "Quick Questions", Blueprint Problems, problem-solving tutorials, and Integrated Cases demonstrate theory in action. A comprehensive support package--prepared by the text authors--connects closely with the book to reduce preparation time and reinforce students understanding. You can also engage your students with a variety of digital tools, including updated Excel® spreadsheets models; a new interactive eReader; and a learning solution that takes into account that your course is so much more than homework: MindTap for Finance.

Features

  • PREPARING FOR FINANCE: Thorough tutorials ensure that students confront and overcome deficiencies in prerequisite math, accounting, economics, and statistics. Tutorials on using various financial calculators and Excel are also included. Preparing for Finance is available in the MindTap and Aplia learning solutions.

  • QUICK QUESTIONS: Located in boxes within the text in key chapters, these insightful exercises pose a relevant question and then walk students through the process of finding its solution. The authors designed these questions to parallel the classroom activity in which students go through an example to make concepts more concrete.

  • EXPANDED REAL-WORLD EXAMPLES: To help students bridge the gap between concept and application, the authors include many real-life examples throughout the text, including a broader discussion of the role of hedge funds and private equity of major firms, a detailed breakdown of the cash conversion cycle components for several leading companies, and an extensive updating of corporate bond ratings, yields, and dividend payouts for a broad range of companies.

  • UPDATED EXCEL MODELS: In a continuing effort to help students know and use Excel® to problem-solve, the authors updated the spreadsheet models that parallel the discussion of each topic. In addition, in-text graphics quickly show students how many of the problems can be solved using Excel®.

  • FOCUSED SELF-TEST PROBLEMS: Ensuring student understanding throughout the chapter, strategically placed Self-Test Problems appear immediately after each major section of the chapter and enable students to test their comprehension before moving to the next topic--instead of waiting until the conclusion of the chapter.

  • COMPREHENSIVE, AUTHOR-WRITTEN SUPPLEMENTS. Prepared by the text authors to ensure consistency, the supplements deliver the same level of accuracy and excellence that has made this text a leader throughout all previous editions. The seamless, integrated supplements package includes a comprehensive Instructor's Manual, Student Study Guide, expansive Test Bank, and numerous digital resources.

  • UNIQUE BALANCE OF THEORY AND PRACTICE. The hallmark strength of this leading finance text is that it clearly introduces important financial theories using a practical and focused presentation. Students are fully engaged and immediately see the impact and importance of financial theories and trends at work through proven learning features, a variety of recent real financial and business world examples, relevant problem sets, and integrated mini-cases.

  • INTEGRATED SPREADSHEET MODELS. More than just Excel® templates, integrated Spreadsheet Models accompany all but the first chapter and guide students in developing effective techniques for financial problem solving. Spreadsheet Models serve as useful tutorials that demonstrate how to maximize Excel® as a powerful finance tool.

About the Author

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.

Joel F. Houston

Dr. Joel F. Houston is the Eugene F. Brigham Professor of Finance at the University of Florida. He received his M.A. and Ph.D. from the Wharton School at the University of Pennsylvania and his undergraduate degree from Franklin and Marshall College. Prior to his appointment at the University of Florida, Dr. Houston was an economist at the Federal Reserve Bank of Philadelphia. Dr. Houston's research is primarily in the areas of corporate finance and financial institutions. His work has been published in top journals including The Journal of Finance, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Accounting Research and Financial Management. Dr. Houston also currently serves as an associate editor for the Journal of Financial Services Research and the Journal of Financial Economic Policy. Since arriving at the University of Florida in 1987, Dr. Houston has received more than 25 teaching awards and has been actively involved in both undergraduate and graduate education. In addition to co-authoring leading textbooks in financial management, Dr. Houston has participated in management education programs for the PURC/World Bank Program, Southern Company, Exelon Corporation and Volume Services America. He enjoys playing golf and spending time with his wife (Sherry), son (Chris), daughter (Meredith) and grandson (Teddy). He is an avid sports fan who follows the Florida Gators as well as the Pittsburgh Steelers, Pirates and Penguins.

Table of Contents

Part I: INTRODUCTION TO FINANCIAL MANAGEMENT.
1. An Overview of Financial Management.
2. Financial Markets and Institutions.
Part II: FUNDAMENTAL CONCEPTS IN FINANCIAL MANAGEMENT.
3. Financial Statements, Cash Flow, and Taxes.
4. Analysis of Financial Statements.
Web Appendix 4A: Common Size and Percent Change Analyses.
5. Time Value of Money.
Web Appendix 5A: Continuous Compounding and Discounting.
Web Appendix 5B: Growing Annuities.
Part III: FINANCIAL ASSETS.
6. Interest Rates.
7. Bonds and Their Valuation.
Web Appendix 7A: Zero Coupon Bonds.
Web Appendix 7B: Bond Risk and Duration.
Web Appendix 7C: Bankruptcy and Reorganization.
8. Risk and Rates of Return.
Web Appendix 8A: Calculating Beta Coefficients.
9. Stocks and Their Valuation.
Appendix 9A: Stock Market Equilibrium.
Part IV: INVESTING IN LONG-TERM ASSETS: CAPITAL BUDGETING.
10. The Cost of Capital.
Web Appendix 10A: The Cost of New Common Stock and WACC.
11. The Basics of Capital Budgeting.
12. Cash Flow Estimation and Risk Analysis.
Appendix 12A: Tax Depreciation.
Web Appendix 12B: Refunding Operations.
Web Appendix 12C: Using the CAPM to Estimate the Risk-Adjusted Cost of Capital.
Web Appendix 12D: Techniques for Measuring Beta Risk.
Web Appendix 12E: Comparing Mutually Exclusive Projects with Unequal Lives.
Web Appendix 12F: Real Options: Investment Timing, Growth, and Flexibility.
13. Real Options and Other Topics in Capital Budgeting.
Part V: CAPITAL STRUCTURE AND DIVIDEND POLICY.
14. Capital Structure and Leverage.
Web Appendix 14A: Degree of Leverage.
15. Distributions to Shareholders: Dividends and Share Repurchases.
Web Appendix 15A: An Example: The Residual Dividend Model.
Part VI: WORKING CAPITAL MANAGEMENT, FORECASTING, AND MULTINATIONAL FINANCIAL MANAGEMENT.
16. Working Capital Management.
Web Appendix 16A: Inventory Management.
Web Appendix 16B: Short-Term Loans and Bank Financing.
17. Financial Planning and Forecasting.
Web Appendix 17A: Forecasting Financial Requirements When Financial Ratios Change.
Part VII: Special Topics in Financial Management.
18. Derivatives and Risk Management.
Appendix 18A: Valuation of Put Options.
19. Multinational Financial Management.
20. Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles.
21. Mergers and Acquisitions.
Web Appendix 21A: Merger Regulation.
Web Appendix 21B: Holding Companies.
Appendix A: Solutions to Self-Test Questions and Problems.
Appendix B: Answers to Selected End-of-Chapter Problems.
Appendix C: Selected Equations and Tables.

New to this edition

  • Completely revised and updated to reflect the latest developments, trends, and issues from the field, the Fourteenth Edition of FUNDAMENTALS OF FINANCIAL MANAGEMENT includes discussions of the federal debt, the ongoing recovery of financial markets, and the European debt crisis.
  • New "Taking A Closer Look" online research exercises enable students to put chapter concepts into real-world practice. Using online data, students determine various aspects of a company's financial state.
  • Financial analysis examples use real-life companies such as Whole Foods, Berkshire Hathaway, and Tesla Motors.
  • Students can now have access to MindTap™, Cengage Learning's fully online, highly personalized learning experience. Understanding that your course is so much more than homework, the MindTap learning path provides resources to help you engage all students in the content by showing its relevance to their own lives. It then continues the progression of learning with a new, interactive eReader and valuable videos providing students with on-demand problem-solving examples. Continuing on in each chapter, MindTap provides practice opportunities complete with immediate, written feedback, before students move on to complete their graded homework assignments. Instructors can personalize the Learning Path for their students by customizing the robust suite of Brigham/Houston 14e resources and easily adding their own content into the MindTap™ framework. MindTap integrates seamlessly with most Learning Management Systems.

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

Website  (ISBN-10: 1305259343 | ISBN-13: 9781305259348)

Save time as you create a dynamic course using the Instructor's Manual, Test Bank in Cognero™, Excel® spreadsheet models, solutions to spreadsheet problems, and PowerPoint® slides. Bring lectures to life as colorful PowerPoint® slides cover the essential topics for each chapter. Created by the authors and updated for the 14E, all of the graphs, tables, lists, and calculations are developed sequentially for your convenience, and you can easily modify slides for your specific needs. The IM contains answers to all text questions and problems and detailed solutions to Integrated Cases. It also contains descriptions of other ancillaries and a sample syllabus and course schedule. Easily illustrate the application of spreadsheets to finance concepts using Spreadsheet Models and the book's Integrated Case data. Much more than just Excel® templates, these spreadsheet models serve as tutorials to enhance students' understanding of how to best utilize Excel® as a powerful finance tool.

Cengage Testing, powered by Cognero® Instant Access  (ISBN-10: 1305279743 | ISBN-13: 9781305279742)

Cengage Learning Testing Powered by Cognero™ is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple and/or algorithmic test versions in an instant; deliver tests from your LMS, your classroom, or wherever you want. Revised to reflect the 14E edition, all question content is tagged according to Tier I (Business Program Interdisciplinary Learning Outcomes) and Tier II (Finance-specific) standards topic, Bloom's Taxonomy, and difficulty level.

Study Guide  (ISBN-10: 1305403894 | ISBN-13: 9781305403895)

Help students earn the grade they want in your course with the help of this valuable tool. This Study Guide lists important learning objectives for each chapter, outlines key sections, provides self-test questions, and offers a set of problems similar to those in the text and Test Bank with fully worked-out solutions.

MindTap Finance, 1 term (6 months) Instant Access for Brigham/Houston's Fundamentals of Financial Management  (ISBN-10: 1305672089 | ISBN-13: 9781305672086)

MindTap Finance for Brigham/Houston’s Fundamentals of Financial Management, 14th Edition 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. As an instructor using MindTap you have at your fingertips the right content and unique set of tools curated specifically for your course, all in an interface designed to improve workflow and save time when planning lessons and course structure. The control to build and personalize your course is all yours’, focusing on the most relevant material while also lowering costs for your students. Stay connected and informed in your course through real time student tracking that provides the opportunity to adjust the course as needed based on analytics of interactivity in the course.

MindTap Finance, 2 terms (12 months) Instant Access for Brigham/Houston's Fundamentals of Financial Management  (ISBN-10: 1305403819 | ISBN-13: 9781305403819)

MindTap Finance for Brigham/Houston's Fundamentals of Financial Management, 14E is a personalized teaching experience with relevant assignments that guide students to analyze, apply, and improve thinking, allowing you to measure skills and outcomes with ease. Personalized teaching becomes yours through a Learning Path built with key student objectives and your syllabus in mind. Control what students see and when they see it. Relevant readings, multimedia, and activities are designed to take students up the levels of learning, from basic knowledge to analysis and application. Analytics and reports provide a snapshot of class progress, time in course, engagement and completion rates. MindTap for Fundamentals of Financial Management helps you provie enough relevance and assistance for your non-majors so you can get your whole class further. It helps students bridge the gap between theory and its application through a learning path designed to follow finance students' workflow needs. The MindTap learning path begins by engaging students in the content by showing its relevance to their own lives. It then continues the progression of learning with a new, interactive eReader and valuable videos providing students with on-demand problem-solving examples. Continuing on in each chapter, MindTap then provides practice opportunities complete with immediate, written feedback, before finally asking students to move on to complete their graded homework assignments.

CengageNOW, 2 terms (12 months) Instant Access  (ISBN-10: 1305403878 | ISBN-13: 9781305403871)

CENGAGENOW ONLINE COURSE MANAGEMENT SYSTEM HELPS YOU IMPROVE STUDENT RESULTS NOW! This robust, online course management system gives you more control in less time and provides student with the resources they need when they need them. CengageNOW includes teaching and learning resources organized around lecturing, creating assignments, grading, quizzing, and tracking student progress and performance. Flexible assignment settings, automatic grading and gradebook options provide more control while saving you valuable time. A media-rich eBook and the Personalized Study diagnostic tool empower students to master concepts, prepare for exams, and become more involved in class. Visit www.cengage.com/discoverdigital to see how CengageNOW can help you easily set your own course, elevate thinking in your course, and improve student outcomes.

Student Supplements

Study Guide  (ISBN-10: 1305403894 | ISBN-13: 9781305403895)

Earn the grade you want in your course with the help of this valuable tool. This Study Guide lists important learning objectives for each chapter, outlines key sections, provides self-test questions, and offers a set of problems similar to those in the text and Test Bank with fully worked-out solutions.

MindTap Finance, 1 term (6 months) Instant Access for Brigham/Houston's Fundamentals of Financial Management  (ISBN-10: 1305672089 | ISBN-13: 9781305672086)

As a student using MindTap Finance for Brigham/Houston’s Fundamentals of Financial Management, 14th Edition, you have the tools you need to better manage your limited time, with the ability to complete assignments whenever and wherever you are ready to learn. Course material that is specially customized for you by your instructor in a proven, easy-to-use interface, keeps you engaged and active in the course. MindTap helps you achieve better grades today by cultivating a true understanding of course concepts, and with a mobile app to keep you on track. With a wide array of course specific tools and apps – from note taking to flashcards – you can feel confident that MindTap is a worthwhile and valuable investment in your education. You will stay engaged with real world assignments like “Why is This Important to Me” and motivated by information that shows where you stand at all times--both individually and compared to the highest performers in class. MindTap eliminates the guesswork, focusing on what’s most important to your instructor with a learning path designed specifically by your instructor and for your course in corporate finance. Master the most important information with built-in study tools such as “Why is This Important to Me”, “ConceptClips”, “Problem Walk-Throughs”, and “Blue Print Problems” that help students stay organized and use their time efficiently.

MindTap Finance, 2 terms (12 months) Instant Access for Brigham/Houston's Fundamentals of Financial Management  (ISBN-10: 1305403819 | ISBN-13: 9781305403819)

MindTap Finance for Brigham/Houston's Fundamentals of Financial Management, 14th Edition 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 resources, tools, and apps -- including "Why Is This Important to Me?" activities, ConceptClip videos, and Problem Walk-Through videos as well as flashcards and note taking -- 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, 2 terms (12 months) Instant Access  (ISBN-10: 1305403878 | ISBN-13: 9781305403871)

CengageNOW provides you with the resources you need to be more successful -- NOW. CengageNOW includes learning resources organized around the way you learn to help you be more efficient and effective in your studies. A Personalized Study diagnostic tool empowers you to master concepts, prepare for exams, and become more involved in class.