• NEW - "Review of Accounting" chapter.
  • Provides students with a conceptual and analytical understanding of accounting principles.
• NEW - Added section in each chapter - "Finance and the Multinational Firm."
  • Highlights global issues that surround financial decision-making, and discusses the international aspects of the material just presented.
• NEW - Section-ending concept checks - Highlights key ideas just presented.
  • Gives students a chance to check their understanding of material in most major sections before moving on to the next.
• NEW - Internet applications - "Takin' it to the Web."
  • Directs students to sidebar references, additional information, and related web sites dealing with the topics covered in each chapter.
• Focus on the axioms of finance.
  • Introduces students, in the first chapter, to the ten axioms that drive the practice of corporate finance, and then reviews them throughout the text in "Back to the Fundamentals" inserts.
• Integration of international finance issues throughout.
  • Supplies students with "International Financial Management" boxes interspersed within the text, and a full chapter on international financial management.
• Emphasis on financial management in practice - Includes "Management in Practice" boxes.
  • Demonstrates the implementation of theory through the use of practice.
• "Ethics in Financial Management" boxes throughout.
  • Explores important ethical issues in financial management.
• The tools, techniques, and equations of financial management.
  • Presents and stresses - in an intuitive way - the logic and fundamentals that drive their use.
• Thorough treatment of "the creation of wealth."
  • Familiarizes students with the concepts of the time value of money, cash flows as opposed to accounting profits, the net present value, and risk-return tradeoffs.
• Strong coverage of capital markets.
  • Shows students their influence on corporate financial decisions.
• Chapter-beginning learning objectives.
  • Alerts students to key concepts, and keeps them aware of these study goals with references in the margins throughout the chapter.
• Chapter-opening vignettes - Features a real-world, current story related to chapter material.
  • Stimulates students' interest in the chapter topics to be discussed, and their classroom discussion of companies' financial decisions.
• Four-part approach to mastering vocabulary.
  • Highlights key terms in text margins, defines them in italics within the text and in the end-of-book glossary, and lists key terms, with page numbers, at the end of each chapter.
• Comprehensive chapter-end problems.
  • Strengthens students' understanding of the material by giving them a chance to apply chapter concepts in a realistic setting.
• The use of financial calculators throughout - References Texas Instruments' BAII Plus.
  • Helps students explore the time value of money - where appropriate calculator solutions appear in the margins.
• "Perspectives in Finance" inserts throughout.
  • Redirects students' attention to the "big picture."

Coming Soon!

1. An Introduction to the Foundations of Financial Management - The Ties That Bind.
2. The Financial Markets and Interest Rates.
3. Understanding Financial Statements and Cash Flows.
4. Evaluating a Firm's Financial Performance.
5. Financial Forecasting, Planning, and Budgeting.
6. The Time Value of Money.
7. Valuation and Characteristics of Bonds.
8. Valuation and Characteristics of Stock.
9. The Meaning and Measurement of Risk and Return.
10. Capital-Budgeting Techniques and Practice.
11. Cash Flows and Other Topics in Capital Budgeting.
12. Cost of Capital.
13. Determining the Financing Mix.
14. Dividend Policy and Internal Financing.
15. Introduction to Working-Capital Management.
16. Liquid Asset Management.
17. 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: Check Figures for Selected End-of-Chapter Study Problems.

Glossary.

Index.

Instructor's Manual with Solutions

The Instructor's Manual, prepared by the authors, contains the four key elements for each chapter. These include: a chapter orientation, which offers the instructor a simple statement of the authors' intent for the chapter, as well as providing a useful point of departure for in-class lecture; a chapter outline for easy reference to key issues; answers to all end-of-chapter questions in the test; and a second set of alternative problems with answers.

Test Bank

The Test Bank, revised for this edition by Philip T. Thames of California State University, Long Beach, provides more than 1500 multiple-choice, true/false, and short-answer questions with complete and detailed answers. There are approximately 340 questions which are new to this edition of the Test Bank.

Prentice Hall Test Manager, Version 4.1

The Test Bank is designed for use with the Prentice Hall Test Manager, a computerized package that allows instructors to custom design, save, and generate classroom tests. The test program (in Windows formats) permits instructors to edit, add, or delete questions from the test banks; edit existing graphics and create new graphics; analyze test results; and organize a database of tests and student results.

PowerPoint Presentation

Over 50 slides per chapter of new lecture notes have been prepared by Professor Anthony Byrd of the University of Central Florida. These electronic slides allow the instructor to make full-color presentations coordinated with Foundations of Finance, Third Edition. The PowerPoints are available from the Prentice Hall web site (www.prenhall.com/keown).

Spreadsheet Templates and Solutions

In addition to the solutions being provided in the Instructor's Manual, we have also developed Spreadsheet Solutions to virtually all of the end-of-chapter problems. The solutions have been prepared in Excel. The user can change the assumptions in the problem and thereby generate new solutions. (Available to download at www.prenhall.com/keown)

Color Transparencies

Approximately 150 four-color acetates of the major figures in the text are available.

Instructor's Resource CD-ROM

New! The Instructor's Resource CD includes the Computerized Test Bank, Instructor's Manual, PowerPoint Presentation, and Transparency Masters of all the figures and tables from the text. It is dual platform for both PC and Macintosh.

Study Guide

Written by the authors, the Study Guide contains several innovative features to help the student of Foundations of Finance. Each chapter begins with an overview of the key points of the chapter, which can serve both as a preview and quick survey of the chapter content and as a review. There are problems (with detailed solutions) and self-tests that can be used to aid in the preparation of outside assignments and to study for examinations. The problems are keyed to the end-of-chapter problems in the text in order to provide direct and meaningful student aid. Multiple-choice and true/false questions are also included to provide a self-test of the descriptive chapter material.

The Study Guide also offers a tutorial on capital budgeting that can help the student work through this important topic on an individual basis at his or her own pace. A helpful teacher's note on understanding the rationale and logic of the internal rate of return is also included in this Study Guide. Students frequently learn the procedure for computing a project's internal rate of return but fail to grasp the meaning or the reason for its computation. This brief note helps the student better understand this important concept and tool of finance.

Finally, in addition to the tables giving compound sum and present value interest factors, the Study Guide now includes tables that show how to compute the interest factors using a financial calculator.

The Prentice Hall Finance Center Web Site and CD-ROM

Located in the inside back cover of this text and at www.prenhall.com/financecenter is the Prentice Hall Finance Center. This robust learning tool contains the following features all designed to increase student awareness of what finance professionals do, to ensure comprehension and mastery of the financial mathematics contained in the text, and to supply a direct link to PHLIP-the Prentice Hall Learning on the Internet Partnership.

FINCOACH-The Financial Math Practice Center

FinCoach contains an infinite number of problems and self-tests in virtually all key math topics covered in financial management. With FinCoach, students can save problems, review them, and even print them. This step-by-step guide to solving corporate finance mathematics problems allows the student to rapidly gain mastery in all mathematical challenges.

PHLIP/CW

PHLIP (Prentice Hall Learning on the Internet Partnership) and Companion Website can be accessed either directly from the Finance Center or remotely at www.prenhall.com/keown. Here's what the student can do on PHLIP:

• Read current news items from the popular business press that are directly related to chapters and use chapter terminology and providing links to more related information, discussion questions, and projects for assignment by the instructor.
• Download Excel spreadsheet templates and PowerPoint slides related to specific chapter problems.
• Access additional career information.
• Learn study skills, writing skills, and engage in conferences with other students studying financial management.
• Companion Website Online Study Guide, an interactive, web-based resource, offers students another opportunity to sharpen their problem-solving skills and to assess their understanding of the text material. Prepared by Karen Hallows of George Mason University, the Companion Website for Foundations of Finance contain an average of 20 multiple-choice questions, 10 true/false and 2 essay questions per chapter. The online study guide has a built-in grading feature that also provides students with immediate feedback in the form of coaching comments.

For the instructor, the PHLIP/CW offers resources such as:

• Syllabus Manager
• a Faculty Lounge area with teaching archives and faculty chat rooms
• Instructors can also download supplements and lecture aids, including the Instructor's Manuals and PowerPoint presentations and Excel Solutions

Instructors should contact their Prentice Hall sales representative to get the necessary username and password to access the faculty resources on CW.

WebCT

Developed by educators, WebCT provides faculty with easy-to-use Internet tools to create online courses (no programming knowledge required). Prentice Hall provides the content and enhanced features to help instructors create a full-length online course, or simply produce online supplementary materials to enhance existing courses. Instructors should contact their PH sales representatives for more information.

Case Connect

Also linked through the PHLIP Web site and applicable to specific chapters in the text are cases using interactive and linked features to provide the student and the instructor with a means of understanding concepts through real-world applications. Generally, these cases focus on a broad area of corporate finance and are appropriate for the level of this text.

Careers Center

This Web site introduces the student to a vast array of professional opportunities in finance through video interviews with professionals and insights into what they do on the job in an average day. Here the student will meet an options trader, a mutual fund manager, investment analysts, a CFO, and others. Also accessible are features for personal development, resume writing, interviewing techniques, and career planning information.

Dr. David F. Scott received his Ph.D. from the University of Florida. He holds an M.B.A. from the University of Detroit, and a 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.

Dr. John 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.

J. William 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.

Arthur J. Keown is the R. B. Pamplin Professor of Finance at Virginia Polytechnic Institute and State University. He received his bachelor's degree from Ohio Wesleyan University, his M.B.A. from the University of Michigan, and his doctorate from Indiana University. An award-winning teacher, he is a member of the Academy of Teaching Excellence, has received five Certificates of Teaching Excellence at Virginia Tech, the W. E. Wine Award for Teaching Excellence, the Alumni Teaching Excellence Award, and in 1999 received the Outstanding Faculty Award from the state of Virginia.