e-book
Fundamentals of Financial Management
Financial management continues to change at a rapid pace. Advancements are occurring not
only in the theory of financial management but also in its real-world practice. One result has
been for financial management to take on a greater strategic focus, as managers struggle to
create value within a corporate setting. In the process of value creation, financial managers are
increasingly supplementing the traditional metrics of performance with new methods that
encourage a greater role for uncertainty and multiple assumptions. Corporate governance
issues, ethical dilemmas, conflicting stakeholder claims, a downsized corporate environment,
the globalization of finance, e-commerce, strategic alliances, the growth of outsourcing, and
a host of other issues and considerations now permeate the landscape of financial decision
making. It is indeed a time of both challenge and opportunity.
The purpose of the thirteenth edition of Fundamentals of Financial Management is to
enable you to understand the financial decision-making process and to interpret the impact
that financial decisions will have on value creation. The book, therefore, introduces you to the
three major decision-making areas in financial management: the investment, financing, and
asset management decisions.
We explore finance, including its frontiers, in an easy-to-understand, user-friendly manner.
Although the book is designed for an introductory course in financial management, it
can be used as a reference tool as well. For example, participants in management development
programs, candidates preparing for various professional certifications (e.g., Certified
Management Accountant and Chartered Certified Accountant), and practicing finance and
accounting professionals will find it useful. And, because of the extensive material available
through the text’s website (which we will discuss shortly), the book is ideal for web-based
training and distance learning.
There are many important changes in this new edition. Rather than list them all, we will
explain some essential themes that governed our revisions and, in the process, highlight some
of the changes. The institutional material – necessary for understanding the environment in
which financial decisions are made – was updated. The book continues to grow more international
in scope. New sections, examples, and boxed features have been added throughout
the book that focus on the international dimensions of financial management. Attention was
also given to streamlining coverage and better expressing fundamental ideas in every chapter.
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