Analysis of Financial Management 7e is a paperback text and has been written to present
standard techniques and modern developments in a practical and intuitive manner. It is
intended for non-financial managers and business students interested in the practice of
financial management. Emphasis is on the managerial applications of financial analysis.
New to This Edition
Enhanced coverage of venture
capital and private equity in response to reviewer feedback, including a new appendix to
Chapter 9 on the venture capital method of valuation. This enhances Analysis of Financial
Management's suitability for entrepreneurial finance courses.
Expanded coverage of
estimating beta, including use of asset betas, in appendix to Chapter 8 to enhance
readers' skills in estimating company betas.
Standard and Poor's problems
appear in 7 out of 9 chapters in end of chapter questions. These problems require the use
of the Educational Version of Market Insight, taking advantage of Standard & Poor's
powerful and well-known Compustat database. These problems provide instructors with an
easy online way to incorporate current, real world date into the classroom. Access to this
rich online resource is FREE with every new copy of the text.
Updated annotated website
references at the end of each chapter explain where financial information can be found
while providing quick access of additional material.
Thorough updating reflecting
the latest theory and real world applications. Virtually all charts, graphs, tables, and
examples in chapters 1, 2, and 4. Significant changes in chapters 8 and 9. To capture
current performance of US companies and the US economy.
Greater emphasis on
simulation, including a financial planning exercise using complimentary modeling software
from Crystal Ball.
Discussion of observed
differences in capital structure across countries.
An assessment of the
strengths and weaknesses of the internal rate of return as an acceptance criterion in
capital budgeting.
Greater emphasis on the
importance of business strategy for company financing choices and on the irrelevance
proposition as a foundation for capital structure decisions.
Expanded coverage of capital
intensity and its effect on breakeven sales.
The removal of answers to
even-numbered problems, enabling instructors to use these problems for homework or class
discussion. (Suggested answers to even-numbered problems are available to instructors in a
password-protected section on book Website.)
Features
Ametek, Inc., a
billion-dollar manufacturer of electronic instruments and motors is used as the extended
example that appears in chapters 1, 2, 4, 8, and 9. Ametek's financial statements are
sufficiently straightforward that novices can make sense of them. Yet the company
illustrates many of the challenges facing companies today including achieving growth
through acquisitions and responding to investor demands for greater transparency in
financial reporting.
Appendix 5A, "Using
Financial Markets to Manage Corporate Risks," is very easy for students to understand
because the presentation is clear and concise.
A heavy reliance on
presenting the practical implications of modern concepts such as market efficiency, beta
risk, and market signaling.
Data on realized returns on
securities, industry ratios, median rations by S&P rating category, etc. is
incorporated throughout.
A clear and simple
presentation of sustainable growth. Higgins continues to receive much praise for this.
Extended discussion of the
statement of cash flows. This discussion is very thorough and uses good, objective data to
illustrate key points.
Significant International
examples dispersed throughout the text and imbedded in selected appendices, especially
Appendix 2A, International Differences in Capital Structure.
Engaging and highly
interesting writing style, a true hallmark of this text.
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Standard & Poor's
Educational Version of Market Insight. McGraw-Hill/Irwin is proud to partner with Standard
& Poor's to offer access to the Educational Version of Standard & Poor's
Market Insight(c). This rich online resource provides six years of financial data for 100
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Table of Contents
Part I: Assessing the
Financial Health of the Firm
- Chapter 1: Interpreting
Financial Statements
- Chapter 2: Evaluating
Financial Performance
- Appendix: International
Differences in Financial Structure
Part II: Planning Future
Financial Performance
- Chapter 3: Financial
Forecasting
- Chapter 4: Managing Growth
Part III: Financing
Operations
- Chapter 5: Financial
Instruments and Markets
- Appendix: Forward Contracts,
Options, and the Management of Corporate Risks
- Chapter 6: The Financing
Decision
- Appendix: The Irrelevance
Proposition
Part IV: Evaluating
investment Opportunities
- Chapter 7: Discounted Cash
Flow Techniques
- Appendix Mutually Exclusive
Alternatives and Capital Rationing
- Chapter 8: Risk Analysis in
Investment Decisions
- Appendix: Diversification
and ß-Risk
- Chapter 9: Business
Valuation and Corporate Restructuring
- Appendix: The Venture
Capital Method of Valuation
- Glossary
- Suggested Answers to
Odd-Numbered End-of-Chapter Problems
412
pages