book

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

Name: Introduction to Finance: Markets, Investments, and Financial Management, 15th Edition
ISBN: 9781118492673

by Ronald W. Melicher, Edgar A. Norton

October 2013

Beginner

608 pages

30h 22m

English

Wiley

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Cover Page
Title Page
Dedication
Copyright
PREFACE
LEARNING AND TEACHING AIDSACKNOWLEDGMENTSFEATURES OF THIS BOOK
AUTHOR BIOS
Brief Contents
Contents
PART 1: INSTITUTIONS AND MARKETS
CHAPTER 1: The Financial Environment
HOW HAS THE FINANCIAL ENVIRONMENT CHANGED?WHAT IS FINANCE?WHY STUDY FINANCE?CAREERS IN FINANCESIX PRINCIPLES OF FINANCEOVERVIEW OF THE FINANCIAL SYSTEMFINANCIAL MARKETS CHARACTERISTICSMAJOR TYPES OF FINANCIAL MARKETSTHE PLAN OF STUDYSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISES

CHAPTER 2: Money and the Monetary System
THE 2007–2008 FINANCIAL CRISISPROCESS OF MOVING SAVINGS INTO INVESTMENTSOVERVIEW OF THE MONETARY SYSTEMIMPORTANCE AND FUNCTIONS OF MONEYDEVELOPMENT OF MONEY IN THE UNITED STATESMONEY MARKET SECURITIESMEASURES OF THE U.S. MONEY SUPPLYMONEY SUPPLY AND ECONOMIC ACTIVITYINTERNATIONAL MONETARY SYSTEMSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
CHAPTER 3: Banks and Other Financial Institutions
FINANCIAL INSTITUTION DISTRESS DURING THE FINANCIAL CRISISTYPES AND ROLES OF FINANCIAL INSTITUTIONSOVERVIEW OF THE BANKING SYSTEMHISTORICAL DEVELOPMENT OF THE U.S. BANKING SYSTEMREGULATION OF THE BANKING SYSTEMSTRUCTURE OF BANKSTHE BANK BALANCE SHEETBANK MANAGEMENTINTERNATIONAL BANKING AND FOREIGN SYSTEMSSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
CHAPTER 4: The Federal Reserve System
U.S. CENTRAL BANK RESPONSE TO THE FINANCIAL CRISIS AND GREAT RECESSIONTHE U.S. BANKING SYSTEM PRIOR TO THE FEDSTRUCTURE OF THE FEDERAL RESERVE SYSTEMMONETARY POLICY FUNCTIONS AND INSTRUMENTSFED SUPERVISORY AND REGULATORY FUNCTIONSFED SERVICE FUNCTIONSCENTRAL BANKS IN OTHER COUNTRIESSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
CHAPTER 5: Policy Makers and the Money Supply
NATIONAL ECONOMIC POLICY OBJECTIVESFOUR POLICY MAKER GROUPSGOVERNMENT REACTION TO THE PERFECT FINANCIAL STORMGOVERNMENT INFLUENCE ON THE ECONOMYPOLICY INSTRUMENTS OF THE U.S. TREASURYAMOUNT OF NATIONAL DEBT AND DEBT MANAGEMENTCHANGING THE MONEY SUPPLYFACTORS AFFECTING BANK RESERVESTHE MONETARY BASE AND THE MONEY MULTIPLIERSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
CHAPTER 6: International Finance and Trade
GLOBAL OR INTERNATIONAL MONETARY SYSTEMEUROPEAN UNIFICATIONCURRENCY EXCHANGE MARKETS AND RATESCONDUCTING BUSINESS INTERNATIONALLYFINANCING INTERNATIONAL TRADEBALANCE IN INTERNATIONAL TRANSACTIONS GOALSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
PART 2: INVESTMENTS
CHAPTER 7: Savings and the Investment Process
GROSS DOMESTIC PRODUCT AND CAPITAL FORMATIONFEDERAL GOVERNMENT RECEIPTS AND EXPENDITURESHISTORICAL ROLE AND CREATION OF SAVINGSMAJOR SOURCES OF SAVINGSFACTORS AFFECTING SAVINGSCAPITAL MARKET SECURITIESMORTGAGE MARKETSA FURTHER LOOK AT THE 2007–2008 FINANCIAL CRISISSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
CHAPTER 8: Interest Rates
SUPPLY AND DEMAND FOR LOANABLE FUNDSDETERMINANTS OF MARKET INTEREST RATESRISK-FREE SECURITIES: U.S. TREASURY DEBT OBLIGATIONSTERM OR MATURITY STRUCTURE OF INTEREST RATESINFLATION PREMIUMS AND PRICE MOVEMENTSDEFAULT RISK PREMIUMSSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
CHAPTER 9: Time Value of Money
PRINCIPLES OF FINANCEBASIC CONCEPTSCOMPOUNDING TO DETERMINE FUTURE VALUESDISCOUNTING TO DETERMINE PRESENT VALUESEQUATING PRESENT VALUES AND FUTURE VALUESFINDING INTEREST RATES AND TIME REQUIREMENTSFUTURE VALUE OF AN ANNUITYPRESENT VALUE OF AN ANNUITYINTEREST RATES AND TIME REQUIREMENTS FOR ANNUITIESDETERMINING PERIODIC ANNUITY PAYMENTSMORE FREQUENT COMPOUNDING OR DISCOUNTING INTERVALSCOST OF CONSUMER CREDITSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISESPROBLEMS
LEARNING EXTENSION 9: Annuity Due Problems
FUTURE VALUE OF AN ANNUITY DUEPRESENT VALUE OF AN ANNUITY DUEINTEREST RATES AND TIME REQUIREMENTS FOR ANNUITY DUE PROBLEMSPROBLEMS
CHAPTER 10: Bonds and Stocks: Characteristics and Valuations
LONG-TERM EXTERNAL FINANCING SOURCES FOR BUSINESSESDEBT CAPITALCORPORATE EQUITY CAPITALREADING STOCK QUOTESDIVIDENDS AND STOCK REPURCHASESSTOCK DIVIDENDS AND STOCK SPLITSVALUATION PRINCIPLESVALUATION OF BONDSVALUATION OF STOCKSVALUATION AND THE FINANCIAL ENVIRONMENTSUMMARYKEY TERMSDISCUSSION QUESTIONSEXERCISES
LEARNING EXTENSION 10: Annualizing Rates of Return
HOLDING PERIOD RETURNSANNUALIZED RATES OF RETURNPROBLEMS
CHAPTER 11: Securities and Markets
ISSUING SECURITIES: PRIMARY SECURITIES MARKETSTHE FACEBOOK IPOTRADING SECURITIES—SECONDARY SECURITIES MARKETSSTRUCTURE OF THE NEW YORK STOCK EXCHANGEWHAT MAKES A GOOD MARKET?A WORD ON COMMISSIONSSECURITY MARKET INDEXESFOREIGN SECURITIESINSIDE INFORMATION AND OTHER ETHICAL ISSUESCHANGES IN THE STRUCTURE OF THE STOCK MARKETSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
LEARNING EXTENSION 11: Introduction to Futures and Options
WHY DO DERIVATIVES EXIST?FUTURES CONTRACTSOPTIONSOPTION PAYOFF DIAGRAMSSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
CHAPTER 12: Financial Returns and Risk Concepts
HISTORICAL RETURN AND RISK FOR A SINGLE FINANCIAL ASSETWHERE DOES RISK COME FROM?EXPECTED MEASURES OF RETURN AND RISKHISTORICAL RETURNS AND RISK OF DIFFERENT ASSETSEFFICIENT CAPITAL MARKETSPORTFOLIO RETURNS AND RISKCAPITAL ASSET PRICING MODEL (CAPM)ETHICS AND JOB OPPORTUNITIES IN INVESTMENTSSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
LEARNING EXTENSION 12: Estimating Beta
SECURITY MARKET LINEQUESTIONS AND PROBLEMS
PART 3: FINANCIAL MANAGEMENT
CHAPTER 13: Business Organization and Financial Data
STARTING A BUSINESSFORMS OF BUSINESS ORGANIZATION IN THE UNITED STATESTHE ANNUAL REPORTACCOUNTING PRINCIPLESINCOME STATEMENTTHE BALANCE SHEETSTATEMENT OF CASH FLOWSFINANCIAL STATEMENTS OF DIFFERENT COMPANIESTHE AUTO BAILOUT AND FINANCIAL STATEMENTSGOAL OF A FIRMCORPORATE GOVERNANCEFINANCE IN THE ORGANIZATION CHARTSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
LEARNING EXTENSION 13: Federal Income Taxation
DEPRECIATION BASICSA FEW WORDS ON DEPRECIATION METHODSQUESTIONS AND PROBLEMS
CHAPTER 14: Financial Analysis and Long-Term Financial Planning
FINANCIAL STATEMENT ANALYSISRATIO ANALYSIS OF BALANCE SHEET AND INCOME STATEMENTTYPES OF FINANCIAL RATIOSSUMMARY OF RATIO ANALYSIS FOR WALGREENSDUPONT METHOD OF RATIO ANALYSISLONG-TERM FINANCIAL PLANNINGSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
CHAPTER 15: Managing Working Capital
OPERATING AND CASH CONVERSION CYCLESCASH BUDGETSMANAGEMENT OF CURRENT ASSETSACCOUNTS RECEIVABLE MANAGEMENTINVENTORY MANAGEMENTTECHNOLOGY AND WORKING CAPITAL MANAGEMENTSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
CHAPTER 16: Short-Term Business Financing
STRATEGIES FOR FINANCING WORKING CAPITALFACTORS AFFECTING SHORT-TERM FINANCINGPROVIDERS OF SHORT-TERM FINANCINGADDITIONAL VARIETIES OF SHORT-TERM FINANCINGTHE COST OF SHORT-TERM FINANCINGSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
CHAPTER 17: Capital Budgeting Analysis
MANAGEMENT OF FIXED ASSETSIDENTIFYING POTENTIAL CAPITAL BUDGET PROJECTSCAPITAL BUDGETING PROCESSCAPITAL BUDGETING TECHNIQUESMODIFIED INTERNAL RATE OF RETURNPROFITABILITY INDEXCONFLICTS BETWEEN DISCOUNTED CASH FLOW TECHNIQUESPAYBACK PERIODDIFFERENCES BETWEEN THEORY AND PRACTICEESTIMATING PROJECT CASH FLOWSAPPROACHES TO ESTIMATING PROJECT CASH FLOWSKEEPING MANAGERS HONESTRISK-RELATED CONSIDERATIONSSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
LEARNING EXTENSION 17: Estimating Project Cash Flows
PROJECT STAGES AND CASH FLOW ESTIMATIONAPPLICATIONSSUMMARYDISCUSSION QUESTIONSPROBLEMS
CHAPTER 18: Capital Structure and the Cost of Capital
WHY CHOOSE A CAPITAL STRUCTURE?REQUIRED RATE OF RETURN AND THE COST OF CAPITALCOST OF CAPITALWEIGHTED AVERAGE COST OF CAPITAL (WACC)DIFFICULTY OF MAKING CAPITAL STRUCTURE DECISIONSPLANNING GROWTH RATESEBIT/EPS ANALYSISCOMBINED OPERATING AND FINANCIAL LEVERAGE EFFECTSINSIGHTS FROM THEORY AND PRACTICEGUIDELINES FOR FINANCING STRATEGYSUMMARYKEY TERMSDISCUSSION QUESTIONSPROBLEMS
APPENDIX
GLOSSARY
INDEX

Overview

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.

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