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Financial Management: Core Concepts, Global Edition PDF

686 Pages·2015·20.44 MB·English
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Prepare, Apply, and Confirm with MyFinanceLab™ Prepare, Apply, and Confirm with MyFinanceLab™ • eText Features —Keep students engaged • Worked Solutions—Provide step-by-step explanations in learning on their own time, while helping them achieve on how to solve select problems using the exact numbers greater conceptual understanding of course material and data that were presented in the problem. Instructors through author-created solutions videos and animations. will have access to the Worked Solutions in preview and review mode. • Algorithmic Test Bank—Instructors have the ability to create multiple versions of a test or extra practice • Dynamic Study Modules—Work by continuously assessing for students. student performance and activity, then using data and analytics to provide personalized content in real time to reinforce concepts that target each student’s particular strengths and weaknesses. • Financial Calculator—The Financial Calculator is available 123 as a smartphone application, as well as on a computer, and includes important functions such as cash flow, net present value, and internal rate of return. Fifteen helpful tutorial videos show the many ways to use the Financial Calculator • Hallmark Features—Personalized Learning Aids, like in MyFinanceLab. Help Me Solve This, View an Example, and instant feedback are available for further practice and mastery when students need the help most! • Reporting Dashboard—View, analyze, and report learning outcomes clearly and easily. Available via the Gradebook and fully mobile-ready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, • Learning Catalytics—Generates classroom visual manner. discussion, guides lecture, and promotes peer-to-peer learning with real-time analytics. • LMS Integration—Link from any LMS platform to access Now, students can use any device to interact in assignments, rosters, and resources, and synchronize MyLab the classroom. grades with your LMS gradebook. For students, new direct, single sign-on provides access to all the personalized learning MyLab resources that make studying more efficient and effective. • Adaptive Study Plan—Assists students in monitoring their own progress by offering them a customized study plan powered by Knewton, based on Homework, Quiz, and Test results.Includes regenerated exercises with • Mobile Ready—Students and instructors can access unlimited practice and the opportunity to prove mastery multimedia resources and complete assessments right through quizzes on recommended learning objectives. at their fingertips, on any mobile device. Prepare, Apply, and Confirm with MyFinanceLab™ Prepare, Apply, and Confirm with MyFinanceLab™ • eText Features —Keep students engaged • Worked Solutions—Provide step-by-step explanations in learning on their own time, while helping them achieve on how to solve select problems using the exact numbers greater conceptual understanding of course material and data that were presented in the problem. Instructors through author-created solutions videos and animations. will have access to the Worked Solutions in preview and review mode. • Algorithmic Test Bank—Instructors have the ability to create multiple versions of a test or extra practice • Dynamic Study Modules—Work by continuously assessing for students. student performance and activity, then using data and analytics to provide personalized content in real time to reinforce concepts that target each student’s particular strengths and weaknesses. • Financial Calculator—The Financial Calculator is available 123 as a smartphone application, as well as on a computer, and includes important functions such as cash flow, net present value, and internal rate of return. Fifteen helpful tutorial videos show the many ways to use the Financial Calculator • Hallmark Features—Personalized Learning Aids, like in MyFinanceLab. Help Me Solve This, View an Example, and instant feedback are available for further practice and mastery when students need the help most! • Reporting Dashboard—View, analyze, and report learning outcomes clearly and easily. Available via the Gradebook and fully mobile-ready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, • Learning Catalytics—Generates classroom visual manner. discussion, guides lecture, and promotes peer-to-peer learning with real-time analytics. • LMS Integration—Link from any LMS platform to access Now, students can use any device to interact in assignments, rosters, and resources, and synchronize MyLab the classroom. grades with your LMS gradebook. For students, new direct, single sign-on provides access to all the personalized learning MyLab resources that make studying more efficient and effective. • Adaptive Study Plan—Assists students in monitoring their own progress by offering them a customized study plan powered by Knewton, based on Homework, Quiz, and Test results.Includes regenerated exercises with • Mobile Ready—Students and instructors can access unlimited practice and the opportunity to prove mastery multimedia resources and complete assessments right through quizzes on recommended learning objectives. at their fingertips, on any mobile device. Financial ManageMent core concepts This page intentionally left blank rayMond M. Brooks Financial ManageMent core concepts GLOBAL EditiOn third EditiOn Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo 3 The Pearson Series in Finance Berk/DeMarzo Gitman/Zutter McDonald Corporate Finance* Principles of Managerial Finance* Derivatives Markets Corporate Finance: The Core* Principles of Managerial Fundamentals of Derivatives Finance—Brief Edition* Markets Berk/DeMarzo/Harford Fundamentals of Corporate Haugen Mishkin/Eakins Finance* The Inefficient Stock Market: Financial Markets What Pays Off and Why and Institutions Brooks Financial Management: Modern Investment Theory Moffett/Stonehill/Eiteman Core Concepts* Fundamentals of Multinational Holden Finance Excel Modeling in Corporate Copeland/Weston/Shastri Financial Theory and Corporate Finance Nofsinger Policy Excel Modeling in Investments Psychology of Investing Dorfman/Cather Hughes/MacDonald Pennacchi Introduction to Risk International Banking: Text Theory of Asset Pricing Management and Insurance and Cases Rejda/McNamara Eakins/McNally Hull Principles of Risk Management Corporate Finance Online* Fundamentals of Futures and Insurance and Options Markets Eiteman/Stonehill/Moffett Smart/Gitman/Joehnk Multinational Business Finance Options, Futures, and Other Fundamentals of Investing* Derivatives Fabozzi Solnik/McLeavey Bond Markets: Analysis Keown Global Investments and Strategies Personal Finance: Turning Money into Wealth* Titman/Keown/Martin Fabozzi/Modigliani/Jones Financial Management: Foundations of Financial Keown/Martin/Petty Principles and Applications* Markets and Institutions Foundations of Finance: The Logic and Practice of Financial Titman/Martin Finkler Management* Valuation: The Art and Science Financial Management of Corporate Investment for Public, Health, and Kim/Nofsinger Decisions Not-for-Profit Organizations Corporate Governance Weston/Mitchell/Mulherin Foerster Madura Takeovers, Restructuring, and Financial Management: Concepts Personal Finance* Corporate Governance and Applications* Marthinsen Frasca Risk Takers: Uses and Abuses Personal Finance of Financial Derivatives *denotes MyFinanceLab titles Visit www.myfinancelab.com to learn more. to greta, Michael, aracely, tyler, and allyson Thanks for giving me such an enjoyable and fun-filled life. Vice President, Business Publishing: Donna Battista Operations Specialist: Carol Melville Acquisitions Editor: Kate Fernandes Creative Director: Blair Brown Editorial Assistant: Elissa Senra-Sargent Art Director: Jon Boylan Vice President, Product Marketing: Maggie Moylan Vice President, Director of Digital Strategy and Assessment: Director of Marketing, Digital Services and Products: Jeanette Koskinas Paul Gentile Senior Product Marketing Manager: Alison Haskins Manager of Learning Applications: Paul DeLuca Executive Field Marketing Manager: Lori DeShazo Digital Editor: Megan Rees Senior Strategic Marketing Manager: Erin Gardner Director, Digital Studio: Sacha Laustsen Team Lead, Program Management: Ashley Santora Digital Studio Manager: Diane Lombardo Program Manager: Kathryn Dinovo Digital Studio Project Manager: Melissa Honig Team Lead, Project Management: Jeff Holcomb Digital Content Team Lead: Noel Lotz Project Manager: Carla Thompson Digital Content Project Lead: Miguel Leonarte Associate Acquisitions Editor, Global Edition: Suchismita Ukil Full-Service Project Management and Composition: Cenveo® Associate Project Editor, Global Edition: Amrita Kar Publisher Services Project Manager, Global Edition: Vamanan Namboodiri Interior and Cover Designer: Lumina Datamatic Ltd Manager, Media Production, Global Edition: Vikram Kumar Cover Art: perfectlab/Shutterstock Senior Manufacturing Controller, Production, Global Edition: Trudy Printer/Binder: Vivar, Malaysia Kimber Cover Printer: Vivar, Malaysia Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. All such documents and related graphics are provided “as is” without warranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services. The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screen shots may be viewed in full within the software version specified. Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2016 The rights of Raymond Brooks to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. Authorized adaptation from the United States edition, entitled Financial Management: Core Concepts, 3rd edition, ISBN 978-0-13-386669-8, by Raymond Brooks, published by Pearson Education © 2016. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, me- chanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC 1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN-10: 1-292-10142-3 ISBN-13: 978-1-292-10142-2 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 10 9 8 7 6 5 4 3 2 1 Typeset by Cenveo® Publisher Services Printed and bound by Vivar, Malaysia ABOut thE AuthOr rAymOnd m. BrOOks is a Professor of Finance at Oregon State University. He has taught a variety of finance courses, including introduction to financial management, investments, advanced corporate finance, financial institutions, financial planning, and risk management. Previously, he taught at Washington University in St. Louis; the University of Southern Illinois, Edwardsville; and the University of Missouri–Columbia. Professor Brooks has authored a variety of articles on topics from dividends to when-issued trading. He has twice won best papers awards at financial conferences. Professor Brooks was a springboard diver for the Oregon State swim team and continues to enjoy swimming, hiking, music, reading, and watching OSU athletic teams. 77

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