Managerial finance, 7th ed.

Abstract

We find ourselves in a financial world that is in turmoil today. The c mplexity of the modern business environ-ment is imposing an ever-growing demand on management, which requires a scientific approach to business decisions. Consequently, managerial financing principles are used to an increasing extent to assist in the pro-cess of decision-making. The managerial finance field continues to experience exciting change and growth, while the future promises to be an even more exciting ti e for finance professionals. There is a vast amount of knowledge required in the field of financial anagement. This textbook is aimed at students undertaking an introductory or intermediate course in corporate finance looking for a single book that will assist them from second year until their Qualifying Exam (QE). The primary objective of the book is to pro-vide one “digestible”, affordable, South African textbook which can be used for more than one year by students with limited time at their disposal. The subject of Managerial Finance is fundamental to understanding and running a company. The subjects dealt with in this textbook include strategy, the time value of money; risk; cost of capital; portfolio management and the Capital Asset Pricing Model; the investment and financing decision; financial analysis; valuations; take-overs, mergers, acquisitions and restructuring; working capital management; foreign exchange markets and currency risk; money and capital markets; and interest rates and interest rate risk. These topics form an integrated whole. Time value of money concepts, the analysis of financial statements and failure prediction are essential pre-requisites for the valuation of business enterprises, while liquidations and restructuring are the result of prolonged financial distress. These topics should be considered within the con-text of the risk involved, working capital requirements and global and international developments in money and capital markets. The needs of South African universities have been taken into account in the compilation of this book. The text-book has been updated to include sections on all the topics set out in SAICA’s syllabus and Competency Framework. We wish to thank the various academics who have prescribed Managerial Finance for their valua-ble input and sugg stions. The book could however also serve as a valuable reference aid to practicing finance professionals. The assistance of Robe t Skae and Lynette van den Heever in researching and compiling certain information is acknowledged.