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Introduction to Finance: Markets, Investments, and Financial Management, 15th Edition



Introduction to Finance: Markets, Investments, and Financial Management, 15th Edition

Ronald W. Melicher, Edgar A. Norton

ISBN: 978-1-118-49267-3 October 2013 608 Pages


The fifteenth edition of Introduction to Finance: Markets, Investments, and Financial Management builds upon the successes of its earlier editions while maintaining a fresh and up-to-date coverage of the field of finance.

Distinguished authors Ron Melicher and Edgar Norton continue to 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.

Related Resources

Preface iii


Chapter 1: The Financial Environment 4

Chapter 2: Money and the Monetary System 21

Chapter 3: Banks and Other Financial Institutions 43

Chapter 4: The Federal Reserve System 73

Chapter 5: Policy Makers and the Money Supply 97

Chapter 6: International Finance and Trade 123


Chapter 7: Savings and the Investment Process 150

Chapter 8: Interest Rates 173

Chapter 9: Time Value of Money 199

Chapter 10: Bonds and Stocks: Characteristics and Valuations 231

Chapter 11: Securities and Markets 275

Chapter 12: Financial Returns and Risk Concepts 313


Chapter 13: Business Organization and Financial Data 348

Chapter 14: Financial Analysis and Long-Term Financial Planning 385

Chapter 15: Managing Working Capital 415

Chapter 16: Short-Term Business Financing 447

Chapter 17: Capital Budgeting Analysis 475

Chapter 18: Capital Structure and the Cost of Capital 515

Appendix 547

Glossary 556

Index 570

  • New extensive coverage of the 2007-2009 Financial Crisis, and subsequent recession and recovery.
  • Featuring a real firm – Walgreens, the retail drugstore chain – in many of the chapters on investments and financial management.
  • International Finance and Trade updated information on the European Union membership and the Eurozone countries that have adopted the Euro.
  • 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.
  • Boxed Features include Small Business Practice, Personal Financial Planning, and Career Opportunities in Finance to illustrate practices in finance.