DescriptionIntroduction to Finance continues to offer a balanced, survey approach to the principles of finance. Distinguished authors Melicher and Norton cover the three major financial areas: institutions and markets, investments, and financial management. Their effective structure equips instructors with maximum flexibility for how the course is taught, and students with an integrated perspective of the different foundations of finance. This survey of the basic knowledge, concepts, and terms of the discipline is appropriate for all students. For those who do not plan to take additional courses in finance, it provides a valuable overview. For those who want to take additional coursework in finance, it provides a solid foundation for their future studies and careers.
PART 1: INSTITUTIONS AND MARKETS 2
Chapter 1: The Financial Environment 4
Chapter 2: Money and the Monetary System 25
Chapter 3: Banks and Other Financial Institutions 49
Chapter 4: Federal Reserve System 79
Chapter 5: Policy Makers and the Money Supply 103
Chapter 6: International Finance and Trade 129
PART 2: INVESTMENTS 156
Chapter 7: Savings and Investment Process 158
Chapter 8: Interest Rates 179
Chapter 9: Time Value of Money 205
Chapter 10: Bonds and Stocks: Characteristics and Valuations 237
Chapter 11: Securities Markets 281
Chapter 12: Financial Return and Risk Concepts 317
PART 3: FINANCIAL MANAGEMENT 350
Chapter 13: Business Organization and Financial Data 352
Chapter 14: Financial Analysis and Long-Term Financial Planning 387
Chapter 15: Managing Working Capital 417
Chapter 16: Short-Term Business Financing 451
Chapter 17: Capital Budgeting Analysis 479
Chapter 18: Capital Structure and the Cost of Capital 521
- New extensive coverage of the 2007-2009 Financial Crisis.
- New discussion on Money Market Securities.
- Reorganised Federal Reserve System coverage now included roles of past and current chairs of the Federal Board of Governors.
- Time Value of Money. Enhanced coverage includes numerous examples showing how to perform calculations with formulas, interest factor tables, Excel spreadsheets, and step-by-step financial calculator keystrokes.
- Revised End-of-Chapter problems and illustrations, at least 5 new problems per chapter.
- Continued business ethics coverage. Covers a wide range of situations from clearly illegal unethical behavior (insider trading) to less clear situations.
- Global Focus. Covers how monetary systems differ worldwide, how foreign exchange rates work, and what causes them to change.
- Spreadsheet Illustrations show how to set up spreadsheets to perform basic financial analysis and explains how to use various Excel functions.
- Career Profile features add a personal, real-world relevance to the material, especially for students considering a finance career.
- Boxed features. Includes Small Business Practice, Personal Financial Planning, and Career Opportunities in Finance to illustrate practices in finance.
- End-of-chapter questions and Concept Checks to quiz students on content.
- Continuing case study. Walgreens and the retail drug store industry are used in the Investments and Financial Management chapters as a means of presenting and analysing data.