Book description
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.
Table of contents
- Cover Page
- Title Page
- Dedication
- Copyright
- PREFACE
- AUTHOR BIOS
- Brief Contents
- Contents
-
PART 1: INSTITUTIONS AND MARKETS
- CHAPTER 1: The Financial Environment
-
CHAPTER 2: Money and the Monetary System
- THE 2007–2008 FINANCIAL CRISIS
- PROCESS OF MOVING SAVINGS INTO INVESTMENTS
- OVERVIEW OF THE MONETARY SYSTEM
- IMPORTANCE AND FUNCTIONS OF MONEY
- DEVELOPMENT OF MONEY IN THE UNITED STATES
- MONEY MARKET SECURITIES
- MEASURES OF THE U.S. MONEY SUPPLY
- MONEY SUPPLY AND ECONOMIC ACTIVITY
- INTERNATIONAL MONETARY SYSTEM
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- EXERCISES
- PROBLEMS
-
CHAPTER 3: Banks and Other Financial Institutions
- FINANCIAL INSTITUTION DISTRESS DURING THE FINANCIAL CRISIS
- TYPES AND ROLES OF FINANCIAL INSTITUTIONS
- OVERVIEW OF THE BANKING SYSTEM
- HISTORICAL DEVELOPMENT OF THE U.S. BANKING SYSTEM
- REGULATION OF THE BANKING SYSTEM
- STRUCTURE OF BANKS
- THE BANK BALANCE SHEET
- BANK MANAGEMENT
- INTERNATIONAL BANKING AND FOREIGN SYSTEMS
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- EXERCISES
- PROBLEMS
-
CHAPTER 4: The Federal Reserve System
- U.S. CENTRAL BANK RESPONSE TO THE FINANCIAL CRISIS AND GREAT RECESSION
- THE U.S. BANKING SYSTEM PRIOR TO THE FED
- STRUCTURE OF THE FEDERAL RESERVE SYSTEM
- MONETARY POLICY FUNCTIONS AND INSTRUMENTS
- FED SUPERVISORY AND REGULATORY FUNCTIONS
- FED SERVICE FUNCTIONS
- CENTRAL BANKS IN OTHER COUNTRIES
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- EXERCISES
- PROBLEMS
-
CHAPTER 5: Policy Makers and the Money Supply
- NATIONAL ECONOMIC POLICY OBJECTIVES
- FOUR POLICY MAKER GROUPS
- GOVERNMENT REACTION TO THE PERFECT FINANCIAL STORM
- GOVERNMENT INFLUENCE ON THE ECONOMY
- POLICY INSTRUMENTS OF THE U.S. TREASURY
- AMOUNT OF NATIONAL DEBT AND DEBT MANAGEMENT
- CHANGING THE MONEY SUPPLY
- FACTORS AFFECTING BANK RESERVES
- THE MONETARY BASE AND THE MONEY MULTIPLIER
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- EXERCISES
- PROBLEMS
- CHAPTER 6: International Finance and Trade
-
PART 2: INVESTMENTS
-
CHAPTER 7: Savings and the Investment Process
- GROSS DOMESTIC PRODUCT AND CAPITAL FORMATION
- FEDERAL GOVERNMENT RECEIPTS AND EXPENDITURES
- HISTORICAL ROLE AND CREATION OF SAVINGS
- MAJOR SOURCES OF SAVINGS
- FACTORS AFFECTING SAVINGS
- CAPITAL MARKET SECURITIES
- MORTGAGE MARKETS
- A FURTHER LOOK AT THE 2007–2008 FINANCIAL CRISIS
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- EXERCISES
- PROBLEMS
- CHAPTER 8: Interest Rates
-
CHAPTER 9: Time Value of Money
- PRINCIPLES OF FINANCE
- BASIC CONCEPTS
- COMPOUNDING TO DETERMINE FUTURE VALUES
- DISCOUNTING TO DETERMINE PRESENT VALUES
- EQUATING PRESENT VALUES AND FUTURE VALUES
- FINDING INTEREST RATES AND TIME REQUIREMENTS
- FUTURE VALUE OF AN ANNUITY
- PRESENT VALUE OF AN ANNUITY
- INTEREST RATES AND TIME REQUIREMENTS FOR ANNUITIES
- DETERMINING PERIODIC ANNUITY PAYMENTS
- MORE FREQUENT COMPOUNDING OR DISCOUNTING INTERVALS
- COST OF CONSUMER CREDIT
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- EXERCISES
- PROBLEMS
- LEARNING EXTENSION 9: Annuity Due Problems
-
CHAPTER 10: Bonds and Stocks: Characteristics and Valuations
- LONG-TERM EXTERNAL FINANCING SOURCES FOR BUSINESSES
- DEBT CAPITAL
- CORPORATE EQUITY CAPITAL
- READING STOCK QUOTES
- DIVIDENDS AND STOCK REPURCHASES
- STOCK DIVIDENDS AND STOCK SPLITS
- VALUATION PRINCIPLES
- VALUATION OF BONDS
- VALUATION OF STOCKS
- VALUATION AND THE FINANCIAL ENVIRONMENT
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- EXERCISES
- LEARNING EXTENSION 10: Annualizing Rates of Return
-
CHAPTER 11: Securities and Markets
- ISSUING SECURITIES: PRIMARY SECURITIES MARKETS
- THE FACEBOOK IPO
- TRADING SECURITIES—SECONDARY SECURITIES MARKETS
- STRUCTURE OF THE NEW YORK STOCK EXCHANGE
- WHAT MAKES A GOOD MARKET?
- A WORD ON COMMISSIONS
- SECURITY MARKET INDEXES
- FOREIGN SECURITIES
- INSIDE INFORMATION AND OTHER ETHICAL ISSUES
- CHANGES IN THE STRUCTURE OF THE STOCK MARKET
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- PROBLEMS
- LEARNING EXTENSION 11: Introduction to Futures and Options
-
CHAPTER 12: Financial Returns and Risk Concepts
- HISTORICAL RETURN AND RISK FOR A SINGLE FINANCIAL ASSET
- WHERE DOES RISK COME FROM?
- EXPECTED MEASURES OF RETURN AND RISK
- HISTORICAL RETURNS AND RISK OF DIFFERENT ASSETS
- EFFICIENT CAPITAL MARKETS
- PORTFOLIO RETURNS AND RISK
- CAPITAL ASSET PRICING MODEL (CAPM)
- ETHICS AND JOB OPPORTUNITIES IN INVESTMENTS
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- PROBLEMS
- LEARNING EXTENSION 12: Estimating Beta
-
CHAPTER 7: Savings and the Investment Process
-
PART 3: FINANCIAL MANAGEMENT
-
CHAPTER 13: Business Organization and Financial Data
- STARTING A BUSINESS
- FORMS OF BUSINESS ORGANIZATION IN THE UNITED STATES
- THE ANNUAL REPORT
- ACCOUNTING PRINCIPLES
- INCOME STATEMENT
- THE BALANCE SHEET
- STATEMENT OF CASH FLOWS
- FINANCIAL STATEMENTS OF DIFFERENT COMPANIES
- THE AUTO BAILOUT AND FINANCIAL STATEMENTS
- GOAL OF A FIRM
- CORPORATE GOVERNANCE
- FINANCE IN THE ORGANIZATION CHART
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- PROBLEMS
- LEARNING EXTENSION 13: Federal Income Taxation
- CHAPTER 14: Financial Analysis and Long-Term Financial Planning
- CHAPTER 15: Managing Working Capital
- CHAPTER 16: Short-Term Business Financing
-
CHAPTER 17: Capital Budgeting Analysis
- MANAGEMENT OF FIXED ASSETS
- IDENTIFYING POTENTIAL CAPITAL BUDGET PROJECTS
- CAPITAL BUDGETING PROCESS
- CAPITAL BUDGETING TECHNIQUES
- MODIFIED INTERNAL RATE OF RETURN
- PROFITABILITY INDEX
- CONFLICTS BETWEEN DISCOUNTED CASH FLOW TECHNIQUES
- PAYBACK PERIOD
- DIFFERENCES BETWEEN THEORY AND PRACTICE
- ESTIMATING PROJECT CASH FLOWS
- APPROACHES TO ESTIMATING PROJECT CASH FLOWS
- KEEPING MANAGERS HONEST
- RISK-RELATED CONSIDERATIONS
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- PROBLEMS
- LEARNING EXTENSION 17: Estimating Project Cash Flows
-
CHAPTER 18: Capital Structure and the Cost of Capital
- WHY CHOOSE A CAPITAL STRUCTURE?
- REQUIRED RATE OF RETURN AND THE COST OF CAPITAL
- COST OF CAPITAL
- WEIGHTED AVERAGE COST OF CAPITAL (WACC)
- DIFFICULTY OF MAKING CAPITAL STRUCTURE DECISIONS
- PLANNING GROWTH RATES
- EBIT/EPS ANALYSIS
- COMBINED OPERATING AND FINANCIAL LEVERAGE EFFECTS
- INSIGHTS FROM THEORY AND PRACTICE
- GUIDELINES FOR FINANCING STRATEGY
- SUMMARY
- KEY TERMS
- DISCUSSION QUESTIONS
- PROBLEMS
-
CHAPTER 13: Business Organization and Financial Data
- APPENDIX
- GLOSSARY
- INDEX
Product information
- Title: Introduction to Finance: Markets, Investments, and Financial Management, 15th Edition
- Author(s):
- Release date: October 2013
- Publisher(s): Wiley
- ISBN: 9781118492673
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