Introduction to Finance: Markets, Investments, and Financial Management
Lýsing:
Introduction to Finance, 17 th Edition offers students a balanced introduction to the three major areas of finance: institutions and markets, investments, and financial management. Updated to incorporate recent economic and financial events, this new edition is an ideal textbook for first courses in finance--reviewing the discipline’s essential concepts, principles, and practices in a clear, reader-friendly manner.
Students gain an integrated perspective of finance by learning how markets and institutions influence, and are influenced by, individuals, businesses, and governments. Designed to impart financial literacy to readers with no previous background in the subject, the text provides a solid foundation for students to build upon in later courses in financial management, investments, or financial markets.
Equations and mathematical concepts are kept to a minimum, and include understandable, step-by-step solutions. Divided into three parts, the book explains financial markets, discusses the functions of financial systems, reviews savings and investments in different sectors, describes accounting concepts and organizational structures, and more. Real-world examples featured throughout the text help students understand important concepts and appreciate the role of finance in various local, national, and global settings.
Annað
- Höfundar: Ronald W. Melicher, Edgar A. Norton
- Útgáfa:17
- Útgáfudagur: 10/2019
- Hægt að prenta út 10 bls.
- Hægt að afrita 2 bls.
- Format:ePub
- ISBN 13: 9781119560579
- Print ISBN: 9781119561170
- ISBN 10: 1119560578
Efnisyfirlit
- COVER
- PREFACE
- AUTHOR BIOS
- PART 1: INSTITUTIONS AND MARKETS
- CHAPTER 1: THE FINANCIAL ENVIRONMENT
- 1.1 WHAT IS FINANCE?
- 1.2 WHY STUDY FINANCE?
- 1.3 SIX PRINCIPLES OF FINANCE
- 1.4 OVERVIEW OF THE FINANCIAL SYSTEM
- 1.5 FINANCIAL MARKETS: CHARACTERISTICS AND TYPES
- 1.6 CAREERS IN FINANCE
- 1.7 THE PLAN OF STUDY
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- NOTES
- CHAPTER 2: MONEY AND THE MONETARY SYSTEM
- 2.1 THE 2007–2008 FINANCIAL CRISIS AND SUBSEQUENT RECOVERY
- 2.2 PROCESS OF MOVING SAVINGS INTO INVESTMENTS
- 2.3 OVERVIEW OF THE MONETARY SYSTEM
- 2.4 CHARACTERISTICS AND FUNCTIONS OF MONEY
- 2.5 DEVELOPMENT OF MONEY IN THE UNITED STATES
- 2.6 MONEY MARKET SECURITIES
- 2.7 MEASURES OF THE U.S. MONEY SUPPLY
- 2.8 MONEY SUPPLY AND ECONOMIC ACTIVITY
- 2.9 INTERNATIONAL MONETARY SYSTEM
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- NOTES
- CHAPTER 3: BANKS AND OTHER FINANCIAL INSTITUTIONS
- 3.1 FINANCIAL INSTITUTION PROBLEMS DURING THE 2007–2008 FINANCIAL CRISIS
- 3.2 TYPES AND ROLES OF FINANCIAL INSTITUTIONS
- 3.3 OVERVIEW OF THE BANKING SYSTEM
- 3.4 HISTORICAL DEVELOPMENT OF THE U.S. BANKING SYSTEM
- 3.5 REGULATION OF THE BANKING SYSTEM
- 3.6 STRUCTURE OF BANKS
- 3.7 THE BANK BALANCE SHEET
- 3.8 BANK MANAGEMENT
- 3.9 INTERNATIONAL BANKING AND FOREIGN SYSTEMS
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- NOTES
- CHAPTER 4: FEDERAL RESERVE SYSTEM
- 4.1 U.S. CENTRAL BANK RESPONSE TO THE FINANCIAL CRISIS AND GREAT RECESSION
- 4.2 THE U.S. BANKING SYSTEM PRIOR TO THE FED
- 4.3 STRUCTURE OF THE FEDERAL RESERVE SYSTEM
- 4.4 MONETARY POLICY FUNCTIONS AND INSTRUMENTS
- 4.5 FED SUPERVISORY AND REGULATORY FUNCTIONS
- 4.6 FED SERVICE FUNCTIONS
- 4.7 CENTRAL BANKS IN OTHER COUNTRIES
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- NOTES
- CHAPTER 5: POLICY MAKERS AND THE MONEY SUPPLY
- 5.1 NATIONAL ECONOMIC POLICY OBJECTIVES
- 5.2 FOUR POLICY MAKER GROUPS
- 5.3 GOVERNMENT INFLUENCE ON THE ECONOMY
- 5.4 TREASURY CASH AND GENERAL MANAGEMENT RESPONSIBILITIES
- 5.5 TREASURY DEFICIT FINANCING AND DEBT MANAGEMENT RESPONSIBILITIES
- 5.6 CHANGING THE MONEY SUPPLY
- 5.7 FACTORS AFFECTING BANK RESERVES
- 5.8 THE MONETARY BASE AND THE MONEY MULTIPLIER
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- NOTES
- CHAPTER 6: INTERNATIONAL FINANCE AND TRADE
- 6.1 INTERNATIONAL MONETARY SYSTEM
- 6.2 EUROPEAN UNIFICATION
- 6.3 CURRENCY EXCHANGE MARKETS AND RATES
- 6.4 FACTORS THAT AFFECT CURRENCY EXCHANGE RATES
- 6.5 CONDUCTING BUSINESS INTERNATIONALLY
- 6.6 FINANCING INTERNATIONAL TRADE
- 6.7 DEVELOPMENTS IN U.S. INTERNATIONAL TRANSACTIONS
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- 6.8 EXCHANGE RATE RISKS IN GLOBAL BUSINESS
- SUMMARY
- REVIEW QUESTIONS
- NOTES
- CHAPTER 1: THE FINANCIAL ENVIRONMENT
- CHAPTER 7: SAVINGS AND INVESTMENT PROCESS
- 7.1 GROSS DOMESTIC PRODUCT AND CAPITAL FORMATION
- 7.2 FEDERAL GOVERNMENT RECEIPTS AND EXPENDITURES
- 7.3 ROLE AND MAJOR SOURCES OF SAVINGS
- 7.4 FACTORS AFFECTING SAVINGS
- 7.5 CAPITAL MARKET SECURITIES
- 7.6 MORTGAGE MARKETS
- 7.7 ROLE OF THE INDIVIDUAL IN THE 2007–2008 FINANCIAL CRISIS AND TODAY
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- NOTES
- CHAPTER 8: INTEREST RATES
- 8.1 SUPPLY AND DEMAND FOR LOANABLE FUNDS
- 8.2 COMPONENTS OF MARKET INTEREST RATES
- 8.3 DEFAULT RISK-FREE SECURITIES: U.S. TREASURY DEBT INSTRUMENTS
- 8.4 TERM OR MATURITY STRUCTURE OF INTEREST RATES
- 8.5 INFLATION PREMIUMS AND PRICE MOVEMENTS
- 8.6 DEFAULT RISK PREMIUMS
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- NOTE
- CHAPTER 9: TIME VALUE OF MONEY
- 9.1 BASIC TIME VALUE CONCEPTS
- 9.2 COMPOUNDING TO DETERMINE FUTURE VALUES
- 9.3 DISCOUNTING TO DETERMINE PRESENT VALUES
- 9.4 FINDING INTEREST RATES AND TIME REQUIREMENTS
- 9.5 FUTURE VALUE OF AN ANNUITY
- 9.6 PRESENT VALUE OF AN ANNUITY
- 9.7 INTEREST RATES AND TIME REQUIREMENTS FOR ANNUITIES
- 9.8 DETERMINING PERIODIC ANNUITY PAYMENTS
- 9.9 MORE FREQUENT TIME INTERVALS AND THE COST OF CONSUMER CREDIT
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- EXERCISES
- PROBLEMS
- 9.10 ANNUITY DUE PROBLEMS
- SUMMARY
- QUESTIONS AND PROBLEMS
- NOTES
- CHAPTER 10: BONDS AND STOCKS: CHARACTERISTICS AND VALUATIONS
- 10.1 LONG-TERM EXTERNAL FINANCING SOURCES FOR BUSINESSES
- 10.2 BONDS
- 10.3 DIFFERENT TYPES OF BONDS
- 10.4 CORPORATE EQUITY CAPITAL
- 10.5 DIVIDENDS AND STOCK REPURCHASES
- 10.6 VALUATION PRINCIPLES
- 10.7 VALUATION OF BONDS
- 10.8 VALUATION OF STOCKS
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- 10.9 HOLDING PERIOD RETURNS
- SUMMARY
- PROBLEMS
- NOTES
- CHAPTER 11: SECURITIES AND MARKETS
- 11.1 ISSUING SECURITIES: PRIMARY SECURITIES MARKETS
- 11.2 THE FACEBOOK IPO6
- 11.3 OTHER WAYS TO ASSIST ISSUING FIRMS
- 11.4 COST OF GOING PUBLIC
- 11.5 INVESTMENT BANKING FIRMS: OTHER FUNCTIONS, INNOVATIONS, REGULATIONS
- 11.6 TRADING SECURITIES – SECONDARY SECURITIES MARKETS
- 11.7 SECURITY TRANSACTIONS
- 11.8 OVER-THE-COUNTER MARKET
- 11.9 WHAT MAKES A GOOD MARKET?
- 11.10 SECURITY MARKET INDEXES AND TRADING FOREIGN SECURITIES
- 11.11 INSIDE INFORMATION AND OTHER ETHICAL ISSUES
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- 11.12 WHY DO DERIVATIVES EXIST?
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- PROBLEMS
- NOTES
- CHAPTER 12: FINANCIAL RETURN AND RISK CONCEPTS
- 12.1 HISTORICAL RETURN FOR A SINGLE FINANCIAL ASSET
- 12.2 HISTORICAL RISK MEASURES FOR A SINGLE FINANCIAL ASSET
- 12.3 WHERE DOES RISK COME FROM?
- 12.4 EXPECTED MEASURES OF RETURN AND RISK
- 12.5 HISTORICAL RETURNS AND RISK OF DIFFERENT ASSETS
- 12.6 EFFICIENT CAPITAL MARKETS
- 12.7 PORTFOLIO RETURNS
- 12.8 VARIANCE AND STANDARD DEVIATION OF RETURN ON A PORTFOLIO
- 12.9 PORTFOLIO RISK AND THE NUMBER OF INVESTMENTS IN THE PORTFOLIO
- 12.10 CAPITAL ASSET PRICING MODEL
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- 12.11A ESTIMATING BETA
- 12.11B SECURITY MARKET LINE
- SUMMARY
- PROBLEMS
- NOTES
- CHAPTER 13: BUSINESS ORGANIZATION AND FINANCIAL DATA
- 13.1 STARTING A BUSINESS
- 13.2 FORMS OF BUSINESS ORGANIZATION IN THE UNITED STATES
- 13.3 ACCOUNTING PRINCIPLES
- 13.4 INCOME STATEMENT
- 13.5 THE BALANCE SHEET
- 13.6 STATEMENT OF CASH FLOWS
- 13.7 FINANCIAL STATEMENTS OF DIFFERENT COMPANIES
- 13.8 GOAL OF A FIRM
- 13.9 CORPORATE GOVERNANCE
- 13.10 FINANCE IN THE ORGANIZATION CHART
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- 13.11A INCOME TAX
- 13.11B DEPRECIATION BASICS
- SUMMARY
- REVIEW QUESTIONS AND PROBLEMS
- NOTES
- CHAPTER 14: FINANCIAL ANALYSIS AND LONG-TERM FINANCIAL PLANNING
- 14.1 FINANCIAL STATEMENT ANALYSIS
- 14.2 LIQUIDITY RATIOS AND ANALYSIS
- 14.3 ASSET MANAGEMENT RATIOS AND ANALYSIS
- 14.4 FINANCIAL LEVERAGE RATIOS AND ANALYSIS
- 14.5 PROFITABILITY RATIOS AND ANALYSIS
- 14.6 MARKET VALUE RATIOS AND ANALYSIS
- 14.7 DUPONT METHOD OF RATIO ANALYSIS
- 14.8 LONG-TERM FINANCIAL PLANNING
- 14.9 COST–VOLUME–PROFIT ANALYSIS
- 14.10 DEGREE OF OPERATING LEVERAGE
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- NOTES
- CHAPTER 15: MANAGING WORKING CAPITAL
- 15.1 IMPORTANCE OF WORKING CAPITAL
- 15.2 OPERATING AND CASH CONVERSION CYCLES
- 15.3 INVESTMENTS IN RECEIVABLES, INVENTORY, AND PAYABLE FINANCING
- 15.4 CASH BUDGETS
- 15.5 MANAGEMENT OF CURRENT ASSETS
- 15.6 GETTING – AND KEEPING – THE CASH
- 15.7 ACCOUNTS RECEIVABLE MANAGEMENT
- 15.8 INVENTORY MANAGEMENT
- 15.9 TECHNOLOGY AND WORKING CAPITAL MANAGEMENT
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- NOTES
- CHAPTER 16: SHORT-TERM BUSINESS FINANCING
- 16.1 STRATEGIES FOR FINANCING WORKING CAPITAL
- 16.2 FACTORS AFFECTING SHORT-TERM FINANCING
- 16.3 PROVIDERS OF SHORT-TERM FINANCING
- 16.4 NONBANK SHORT-TERM FINANCING SOURCES
- 16.5 ADDITIONAL VARIETIES OF SHORT-TERM FINANCING
- 16.6 INVENTORY FINANCING AND OTHER SECURED LOANS
- 16.7 THE COST OF SHORT-TERM FINANCING
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- NOTES
- CHAPTER 17: CAPITAL BUDGETING ANALYSIS
- 17.1 MISSION, VISION, AND CAPITAL BUDGETING
- 17.2 CAPITAL BUDGETING PROCESS
- 17.3 CAPITAL BUDGETING TECHNIQUES – NET PRESENT VALUE
- 17.4 CAPITAL BUDGETING TECHNIQUES – INTERNAL RATE OF RETURN
- 17.5 CAPITAL BUDGETING TECHNIQUES – MODIFIED INTERNAL RATE OF RETURN
- 17.6 CAPITAL BUDGETING TECHNIQUES – PROFITABILITY INDEX
- 17.7 CAPITAL BUDGETING TECHNIQUES – PAYBACK PERIOD
- 17.8 CONFLICTS BETWEEN DISCOUNTED CASH FLOW TECHNIQUES
- 17.9 ESTIMATING PROJECT CASH FLOWS
- 17.10 KEEPING MANAGERS HONEST
- 17.11 RISK-RELATED CONSIDERATIONS
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- 17.12 PROJECT STAGES AND CASH FLOW ESTIMATION
- 17.13 APPLICATIONS
- SUMMARY
- PROBLEMS
- NOTES
- CHAPTER 18: CAPITAL STRUCTURE AND THE COST OF CAPITAL
- 18.1 WHY CHOOSE A CAPITAL STRUCTURE?
- 18.2 REQUIRED RATE OF RETURN AND THE COST OF CAPITAL
- 18.3 COST OF CAPITAL
- 18.4 WEIGHTED AVERAGE COST OF CAPITAL
- 18.5 PLANNING GROWTH RATES
- 18.6 EBIT/eps ANALYSIS
- 18.7 COMBINED OPERATING AND FINANCIAL LEVERAGE EFFECTS
- 18.8 INSIGHTS FROM THEORY AND PRACTICE
- APPLYING FINANCE TO…
- SUMMARY
- KEY TERMS
- REVIEW QUESTIONS
- PROBLEMS
- NOTES
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