• KEY FEATURE - Ten Axioms of Finance - The fundamental principles that drive the practice of corporate finance. Shows students that finance is not merely the study of a set of unrelated topics, tools, and techniques, but is a very cohesive and directed study linked together by common underlying principles. See page 25.

  Introduces the axioms in an intuitive way in Ch. 1, drawing students' attention to the logic that drives the techniques and tools. Revisits the axioms again and again in highlighted inserts - "Relate to the Big Picture" - throughout the text. This refocuses students' attention upon the underlying principles behind what is being done and prevents them from becoming so wrapped up in specific calculations that the interrelationships and overall scheme is lost. See pages 63, 153, 402, 490.

  
  
  
• NEW - "How Financial Managers Use This Material" - Concludes each chapter with an emphasis on actual business practices by using articles taken largely from the popular press, followed by analysis and implications.
  
  
• UNIQUE - Finance Center CD-ROM FREE in the back of the text.
  The CD ROM Consists of the following:
  • FinCoach Software: FinCoach software has an unlimited number of problems that allows students to practice the math of finance. Fincoach is integrated into the end-of-chapter problems so that students can practice in context of what they are learning
  • Career Center: Explores the working life of finance professionals. There are video interviews with finance professionals explaining what they do every day, industry surveys of current salaries at all levels among finance professions, interview and resume writing tips, and other advice that will help students land their first job.
  • Web Center: A direct link to PHLIP/CW is located on the CD ROM where the students can get current events, Internet resources, and study help.
  
  
  
• Math support for students - The use of financial calculators - integrated throughout - especially with respect to the presentation of the time-value of money. Where appropriate, provides calculator solutions in the margin.
  
  
• Stop and Think segments - Interspersed throughout the text. Allows students to take time out and reflect upon the meaning of what has just been presented. See pages 218, 362, 693.
  
  
• Basic Finacial Mangement in Practice boxes are integrated throughout the text - the articles are from top newspapers, magazines, and financial journals. The articles are current and interesting. For example, page 187, "Make a Child a Millionaire," or "Sure Markets are Rational, Just Like Life" (page 275). Help students analyze current events, ethical dillemmas, personal finance, global events, etc; showing how the big picture of finance extends beyond the covers of this book.
  
  
• Unbiased coverage of ethics - Beginning with Ch. 1 and continuing throughout, explains what ethics is and why it is correct, and gives examples of ethical dilemmas in finance. Includes ethics boxes spread throughout the text and three special ethics cases at the end of selected chapters.
  
  
• International finance - Woven throughout the text and discussed in an optional full chapter that deals directly with the topic (Ch. 22).
  
  
• Self-contained, stand-alone chapters - Because the axioms (and the "big picture" perspective) are woven into every chapter, the presentation of the text remains tight - regardless of how the chapters might be rearranged.

1. An Introduction to Financial Management
   Appendix: Methods of Depreciation
2. The Role of Financial Markets and Interest Rates in Financial Management
3. Evaluating a Firm's Financial Performance and Measuring Cash Flow
4. Financial Forecasting, Planning, and Budgeting
5. The Time Value of Money
6. Risk and Rates of Return
   Appendix: Measuring the Required Rate of Return: The Arbitrage Pricing Model
7. Bond Valuation
8. Stock Valuation
   Appendix: The Relationship Between Value and Earnings
9. Capital-Budgeting Decision Criteria
10. Cash Flows and Other Topics in Capital Budgeting
11. Capital Budgeting and Risk Analysis
12. Cost of Capital
13. Analysis and Impact of Leverage
14. Planning the Firm's Financing Mix
15. Dividend Policy and Internal Financing
16. Working-Capital Management and Short-Term Financing
17. Cash and Marketable Securities Management
    Appendix: Cash-Management Models: Split Between Cash and Near Cash
18. Accounts Receivable, Inventory, and Total Quality Management
19. Term Loans and Leases
20. The Use of Futures, Options, and Currency Swaps to Reduce Risk
    Appendix: Convertible Securities and Warrants
21. Corporate Restructuring: Combinations and Divestitures
22. International Business Finance

Appendix A: Using a Calculator

Appendix B: Compound Sum of $1

Appendix C: Present Value of $1

Appendix D: Sum of an Annuity of $1 for n Periods

Appendix E: Present Value of an Annuity of $1 for n Periods

Appendix F: Solutions for Selected End-of-Chapter Problems

Glossary

Organization Index

Subject Index

Dr. Scott received his Ph.D. from the University of Florida. He holds an M.B.A. from the University of Detroit, and the B.S.B.A. from the University of Akron. He is holder of the Phillips-Schenck Chair in American Private Enterprise, Executive Director of the Dr. Phillips Institute for the Study of American Business Activity, and Professor of Finance at the University of Central Florida. He has been at UCF since l982. From l977-l982 he was Area Coordinator, then Head, Department of Finance, Insurance, and Business Law at Virginia Polytechnic Institute and State University. During l985-l986 he was President of the Financial Management Association, an international group of 9000 members. He was a member of the Board of Trustees of FMA from 1986-1993.

Dr. Martin came to Baylor University from the University of Texas at Austin where he taught for eighteen years and was the Margaret and Eugene McDermott Centennial Professor of Finance. He teaches corporate finance and financial modeling and his research interests are in corporate governance, the evaluation of firm performance, and the design of incentive compensation programs. Dr. Martin has published widely in both academic and professional journals. Included among his academic publications are papers that have appeared in the Journal of Financial Economics, Journal of Finance, Journal of Monetary Economics, Journal of Financial and Quantitative Analysis, Financial Management, and Management Science. Professional publications include papers published in Directors and Boards, the Financial Analysts Journal, Journal of Portfolio Management, and the Journal of Applied Corporate Finance. Dr. Martin is also co-author of nine books including Basic Financial Management (8th ed.), Foundations of Finance (2nd ed.), The Theory of Finance, and Financial Analysis (2nd ed.). Currently he is writing a book on value based management for the Harvard Business School press. He serves on the editorial boards of eight journals and has been consultant to a number of firms including Hewlett Packard, Shell Chemical, Shell E&P, Texas Instruments, and The Associates.

Professor Petty served as the co-editor for the Journal of Financial Research and currently serves as the editor of the Journal of Entrepreneurial and Small Business Finance. He has published in numerous finance journals and is the co-author of two leading corporate finance textbooks, Basic Financial Management, and Foundations of Finance, and co-author of a widely-used text, Small Business Management. He served as a subject matter expert on a best-practices study by the American Productivity and Quality Center on the topic of shareholder value based management, and served on a research team to advise the Australian government on the feasibility of an alternative equity market for middle-market companies. Professor Petty is currently conducting a study for the Financial Executive Research Foundation on exit strategies for entrepreneurs and private-equity investors, co-authoring a book to be published by the Harvard Business School Press, Value-Based Management: Corporate America's Response to the Shareholder Revolution of the Nineties.

Dr. Keown is an R. B. Pamplin Professor of Finance. His research interests include investments, corporate finance, operations research applications in finance, and personal finance. He is a member of Beta Gamma Sigma, the national business scholastic fraternity, the American Finance Association, Financial Management Association, American Institute for Decision Sciences, Southern Finance Association, and Eastern Finance Association. In 1986 Dr. Keown was selected as a Fellow of the Decision Sciences Institute. He is also a member of the Board of Directors of the Financial Management Association. Dr. Keown has co-authored several books including Basic Financial Management, Foundations of Finance: The Logic and Practice of Financial Management; Personal Finance: Turning Money Into Wealth, Cases in Finance; and Cases in Basic Financial Management. Dr. Keown has also published articles in the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Financial Management, Journal of Banking and Finance, Managerial and Decision Economics, Pacific-Basin Capital Markets Research, AIIE Transactions, Journal of Portfolio Management, The Engineering Economist, Journal of Business Research, Journal of Business and Economics, Journal of Accounting, Auditing and Finance, Operations Research Quarterly, Omega, and others. In addition, Dr. Keown is the Editor of the Journal of Financial Reserch, and Financial Management Association Survey and Synthesis, is on the Editorial Board of the International Journal of Finance, and Review of Financial Economics and has served on the Editorial Board of Decision Sciences and the Journal of Business Research, and acts as a referee for numerous other journals. In the teaching area Dr. Keown has received teaching excellence awards both at Indiana University and at Virginia Tech, is a member of the Academy of Teaching Excellence and has won both the W. E. Wine Award for Teaching Excellence and the Alumni Teaching Award. emily@vt.edu; http://www.cob.vt.edu/finance/faculty/ajk.