Foundations of financial management, 17th ed.

Abstract

Forty-two years have passed since we began writing the first edition of this text, and many things have changed during that timeincluding the author team. First of all, the field of finance has become much more analytical, with the emphasis on decision-oriented approaches toproblems rather than the old, descriptive approach. We have increased the use of analytical approaches to financial problems invirtually every chapter of the book. But we also have stayed with our basic mission of making sure students are able to follow usin our discussions throughout the text. While the 17th edition is considerably more sophisticated than the initial edition, it is stillextremely “reader friendly.” As the analytical skills demanded of students have increased, so has the authors’ care in presentingthe material. Using computers and calculators has become considerably more important over the last quarter century, and this is alsoreflected in the 17th edition where we have added Excel tables and calculator keystroke solutions within key chapters. We offerWeb Exercises at the end of every chapter, URL citations throughout the text, a library of course materials for students andfaculty, computerized testing software and PowerPoint® for the faculty, Connect, an online assignment and assessment solution,and LearnSmart with SmartBook, a truly innovative adaptive study tool and eBook. Throughout the past 42 years, this text has been a leader in bringing the real world into the classroom, and this has neverbeen more apparent than in the 17th edition. Each chapter opens with a real-world vignette, and the Finance in Action boxes(found in virtually every chapter) describe real-world activities and decisions made by actual businesses. We are also up-to-dateon the latest tax and financial reporting legislation including the 2017 Tax Cuts and Jobs Act. The international world of finance has become much more important and the text has expanded its international coveragetenfold since the first edition. Where there is an international application for a financial issue, you are very likely to find it in thistext. Furthermore, the 17th edition continues to give modest coverage to the recession and liquidity crisis that has engulfed the U.S.and world economies in the latter part of the 2000–2009 decade (and into the current decade). Special attention is given to thebanking sector and the critical need for funding that almost all businesses face. The issue of changing regulations is also covered. However, there is one thing that has not changed over the last 42 years—we still write the entire book and all of the problemsourselves! We believe our devotion of time, energy, and commitment over these years is the reason for our reputation for havingproduced a high-quality and successful text—edition after edition.