The Basics of Finance

The Basics of Finance is an engaging and practical guide that:

• Covers the three main areas of finance: Capital market theory, Financial management, and Investment Management, and discusses what each one encompasses.
• Provides a solid foundation in the field of finance, which you can quickly build upon.
• Explores in an introductory way important topics such as cash flow analysis, asset valuation, capital budgeting, and derivatives.
• Includes access to a companion Web site with an appendix of solutions for a selection of the sample problems.

Table of Contents

• Chapter 1: What is Finance?
  

Part I - The Financial System

• Chapter 2: Financial Instruments, Markets, and Intermediaries
• Chapter 3: The Financial System's Cast of Characters

Part II - Financial Management

• Chapter 4: Financial Statements
• Chapter 5: Business Finance
• Chapter 6: Financial Strategy and Financial Planning
• Chapter 7: Dividend and Dividend Policies
• Chapter 8: The Corporate Financing Decision
• Chapter 9: Financial Risk Management

Part III - Valuation and Analytical Tools

• Chapter 10: The Math of Finance
• Chapter 11: Financial Ratio Analysis
• Chapter 12: Cash Flow Analysis
• Chapter 13: Capital Budgeting
• Chapter 14: Derivatives for Controlling Risk

Part IV - Investment Management

• Chapter 15: Investment Management
• Chapter 16: The Theory of Portfolio Selection
• Chapter 17: Asset Pricing Theory
• Chapter 18: The Structure of Interest Rates
• Chapter 19: Valuing Common Stock
• Chapter 20: Valuing Bonds

Glossary

About the Authors

Index

Appendix: Solutions to End of Chapter Questions