Basic Finance
Combining up-to-the-minute coverage with best practices from the field, Basic Finance: An Introduction to Financial Institutions, Investments, and Management offers a proven modular approach to help users learn financial concepts quickly and easily. The book illustrates how all three primary aspects of finance – investments, financial institutions, and corporate finance – are interrelated to give readers a solid foundation, and offers a concise, self-contained treatment of specific concepts or institutions. Herbert Mayo also adds numerous hands-on problems, financial calculation illustrations, an Excel appendix, and the MindTap digital solution to help you put what you learn into practice and maximize your success.
The 12th Edition includes more explicit references to assumptions used in the analyses to help improve student understanding.
This edition offers comprehensive coverage of time value of money using equations, interest tables, and financial keystrokes to ensure your understanding of this key topic that permeates finance.
The text's coverage of the basics of advanced topics such as derivatives (including puts, calls, and futures contracts) gives instructors the option of also introducing their students to more sophisticated material.
Enabling students to check their understanding as they progress through the text, answers to selected problems are provided in the appendix and additional problems with worked out solutions are included in appropriate chapters.
The book also includes numerous self-help problems with answers and relationships with answers, new sections on Internet sources of information, and up-to-date tax laws.
TABLE OF CONTENTS
Preface.
An Introduction to Basic Finance
PART I. FINANCIAL INSTITUTIONS
The Role of Financial Markets and Financial Intermediaries
Securities Markets
The Federal Reserve
International Currency Flows
PART II. FINANCIAL TOOLS
Risk and Its Measurement
Analysis of Financial Statements
PART III. INVESTMENTS
The Features of Stock
Stock Valuation
Bond Pricing and Yields
Convertible Securities
Investment Returns
Investment Companies
PART IV. CORPORATE FINANCE
Forms of Business and Corporate Taxation
Break-Even Analysis and the Payback Period
Cost of Capital
Capital Budgeting
Forecasting
Cash Budgeting
Management of Current Assets
Management of Short-Term Liabilities
Intermediate-Term Debt and Leasing
PART V. DERIVATIVES
Appendix A: Interest Factors for the Future Value of One Dollar
Appendix B: Interest Factors for the Present Value of One Dollar
Appendix C: Interest Factors for the Future Value of an Annuity of One Dollar
Appendix D: Interest Factors for the Present Value of an Annuity of One Dollar
Appendix E: Using Excel to Solve Financial Problems
Appendix F: Answers to Selected Problems