Additionally, access to Thomson ONE - Business School Edition, an online financial database that students can use to complete projects or select end of chapter exercises, is included with each new text.
Score: 3. With this end in view, Professor Bhabatosh Banerjee, drawing from his expertise and his rich and long years of experience, gives a masterly analysis of the fundamental principles of financial management along with their applications. While retaining the distinguishing features of the previous edition, the book is now a much more comprehensive one on Financial Management.
Significant changes have been incorporated into the chapters relating to cost of capital, analysis of leverages, capital structure theories and planning, capital budgeting decision, working capital management, changes in financial position, accounting ratios and financial statement analysis, mergers and acquisitions and corporate governance for further value addition of the book.
This book is primarily intended as a text for the students of commerce and management courses. In addition, the text will benefit practising finance and accounting professionals, corporate managers, and participants in management development programs. This will enable the students to acquaint themselves with re. It provides tips, questions and answers and special features.
The book's presentation of Time Value of Money TVM is repositioned so readers can immediately begin using the concepts after learning them. This book attempts to provide a clear understanding of the fundamentals of the subject, including the concepts, theories, models, tools and techniques, and their applications.
Its focus on logical discussion, where it is needed for contextual understanding of the topic, makes the book different from others. Fundamentals of Financial Management is a useful resource for undergraduate students of management and commerce, as well as for practising managers. The text focuses on the "nuts and bolts" of finance with clear and thorough treatment of concepts and applications.
In addition to completing the revisions, Block, Hirt, and Danielsen also revise all end of chapter problems and complete the solutions themselves. The authors know what works and what doesn't work for students, and they have consistently maintained a product that is responsive to the demands of the marketplace. Still others will major in areas other than business and take finance plus a few other business courses to gain information that will help them in law, real estate, or other fields.
Our challenge has been to provide a book that serves all of these audiences well. We focus on the core principles of finance, including the basic topics of time value of money, risk analysis, and valuation. Both investors and managers need to understand the same set of principles, so the core topics are important to students regardless of what they choose to do after they finish the course.
Included were an overview of financial markets, methods used to estimate the cash flows that determine asset values, the time value of money, the determinants of interest rates, the basics of risk analysis, and the basics of bond and stock valuation procedures.
We cover these core topics in the first nine chapters. Next, because most students in the course will probably work for a business firm, we want to show them how the core ideas are implemented in practice.
Therefore, we go on to discuss cost of capital, capital budgeting, capital structure, dividend policy, working capital management, financial forecasting, risk management, international operations, hybrids, and mergers and acquisitions.
Non-finance majors sometimes wonder why they need to learn finance. As we have structured the book, it quickly becomes obvious to everyone why they need to understand time value, risk, markets, and valuation.
Virtually all students enrolled in the basic course expect at some point to have money to invest, and they quickly realize that the knowledge gained from Chapters 1 through 9 will help them make better investment decisions.
Moreover, students who plan to go into the business world soon realize that their own success requires that their firms be successful, and the topics covered in Chapters 10 through 21 will be helpful here. Managers have a responsibility to behave ethically, and when striving to maximize value, they must abide by constraints such as not polluting the environment, not engaging in unfair labor practices, not breaking the antitrust laws, and the like.
In Chapter 1, we discuss the concept of valuation, explain how it depends on future cash flows and risk, and show why value maximization is good for society in general. This valuation theme runs throughout the text. Stock and bond values are determined in the financial markets, so an understanding of those markets is essential to anyone involved with finance.
Therefore, Chapter 2 covers the major types of financial markets, the rates of return that investors have historically earned on different types of securities, and the risks inherent in these securities. This information is important for anyone working in finance, and it is also important for anyone who has or hopes to own any financial assets.
In this chapter, we also highlight how this environment has changed in the aftermath of the financial crisis. Asset values depend in a fundamental way on earnings and cash flows as reported in the accounting statements. Therefore, we review those statements in Chapter 3 and then, in Chapter 4, show how accounting data can be analyzed and used to measure how well a company has operated in the past and how well it is likely to perform in the future.
Chapter 5 covers the time value of money TVM , perhaps the most fundamental concept in finance. The basic valuation model, which ties together cash flows, risk, and interest rates, is based on TVM concepts, and these concepts are used throughout the remainder of the book.
Therefore, students should allocate plenty of time to studying Chapter 5.
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