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.
PART 1: INSTITUTIONS AND MARKETS 2
Chapter 1: The Financial Environment 4
Chapter 2: Money and the Monetary System 21
Chapter 3: Banks and Other Financial Institutions 43
Chapter 4: Federal Reserve System 73
Chapter 5: Policy Makers and the Money Supply 97
Chapter 6: International Finance and Trade 123
PART 2: INVESTMENTS 148
Chapter 7: Savings and Investment Process 150
Chapter 8: Interest Rates 173
Chapter 9: Time Value of Money 199
Chapter 10: Bonds and Stocks: Characteristics and
Chapter 11: Securities Markets 275
Chapter 12: Financial Return and Risk Concepts 317
PART 3: FINANCIAL MANAGEMENT 346
Chapter 13: Business Organization and Financial Data 348
Chapter 14: Financial Analysis and Long-Term Financial
Chapter 15: Managing Working Capital 415
Chapter 16: Short-Term Business Financing 447
Chapter 17: Capital Budgeting Analysis 476
Chapter 18: Capital Structure and the Cost of Capital 515
- 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.