Foundations of Finance, Global Edition, 10th edition

For undergraduate corporate finance courses.

The five key principles for the foundations of finance

Foundations of Finance retains its foundational approach to the key concepts of finance, bolstered by real-world vignettes, cases, and problem exercises. Utilizing five principles, which are presented at the beginning of the book and applied throughout, the authors introduce a multi-step approach to financial problem solving that appeals to students’ (at all levels) math and numerical skills. As with previous editions, the 10th Edition, Global Edition focuses on valuation and opens every chapter with a vignette based on financial decisions faced by contemporary, real-world companies and firms. Revised and updated, the text features new lecture videos, financial thinking, user feedback, and changes inspired by the passage of the Tax Cuts and Jobs Act of 2017 in the United States of America, so students are well equipped to effectively deal with financial problems in an ever-changing financial environment.

MyLab Finance is not included. Students, if MyLab Finance is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN. MyLab Finance should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.

Reach every student by pairing this text with MyLab Finance: MyLabTM is the teaching and learning platform that empowers you to reach every student. By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student.

Comprehensive coverage of financial concepts

• Revised - Extensive updates have been made to the material in response to the continued development of financial thought, reviewer comments, and passage of the Tax Cuts and Jobs Act of 2017 in the United States of America. They include (but are not limited to):
  • recent developments in the financial markets;
  • new tax laws and their implications; and
  • changes to interest and exchange rates.
• Five principles, presented at the beginning of the book, provide students with a strong foundation of the key concepts in finance so they’re able to apply such principles outside of class to real-life situations.
  • Principle 1: Cash Flow Is What Matters
  • Principle 2: Money Has a Time Value
  • Principle 3: Risk Requires a Reward
  • Principle 4: Market Prices are Generally Right
  • Principle 5: Conflicts of Interest Can Cause Agency Problems
• A focus on valuation. Although many professors and instructors make valuation the central theme of their course, students often lose sight of this focus when reading their text. Foundations of Finance makes this key theme prominent in its discussions and examples.
• New - Streamlined presentation of chapter topics , such as the process used to evaluate a firm’s financial performance, or the discussion of cash management, makes it easier for students to review and retain the material.

Real-world context of corporate finance principles for students

• Revised and Updated - Real-World Chapter-Opening Vignettes tell a story about a current, real-world company faced with a financial decision related to the chapter material, such as Disney’s decision to build the Shanghai Disney Resort. These vignettes have been carefully prepared to stimulate student interest and can be used as a lecture tool to provoke class discussion.
• New and Updated - Examples using real individuals and companies such as Nike and eBay, encourage students to apply the concepts presented in each chapter.
• Updated - Mini Cases help students apply chapter concepts to a realistic setting, thereby strengthening their understanding of the material. The 10th Edition now includes examination of the financial statements of retail giants, Walmart and Target, Wildhorse Resources, and many more.
• New and Updated - Finance at Work describes corporate finance in action, covering the “green bonds” issued by Apple, stock quotes in the Wall Street Journal, and more.
• Revised - Figures further illustrate concepts, such as the dramatic differences in capital structures used by firms in very different types of industries.
• Cautionary Tales give students insights into how the core concepts of finance apply in the real world. Each one goes behind the headlines of finance pitfalls in the news to show how one of the five principles was forgotten or violated.
• Ethics in Financial Management boxes show students that ethical behavior is doing the right thing and that ethical dilemmas are everywhere in finance.

Tools to help students check their understanding

• Use of an integrated learning system. The text is organized around the learning objectives that appear at the beginning of each chapter to provide instructors and students with an easy-to-use integrated learning system. Numbered icons identifying each objective appear next to the related material throughout the text and in the summary, allowing easy location of material related to each objective.
• Can You Do It? examples and Did You Get It? sections provide essential ingredients to the building-block approach to the material in this text.
• Co

Comprehensive coverage of financial concepts

• Extensive updates have been made to the material in response to the continued development of financial thought, reviewer comments, and passage of the Tax Cuts and Jobs Act of 2017 in the United States of America. They include (but are not limited to):
  • recent developments in the financial markets;
  • new tax laws and their implications; and
  • changes to interest and exchange rates.
• Streamlined presentation of chapter topics , such as the process used to evaluate a firm’s financial performance, or the discussion of cash management, makes it easier for students to review and retain the material.

Real-world context of corporate finance principles for students

• Real-World Chapter-Opening Vignettes tell a story about a current, real-world company faced with a financial decision related to the chapter material, such as Disney’s decision to build the Shanghai Disney Resort. These vignettes have been carefully prepared to stimulate student interest and can be used as a lecture tool to provoke class discussion.
• Examples using real individuals and companies such as Nike and eBay, encourage students to apply the concepts presented in each chapter.
• Mini Cases help students apply chapter concepts to a realistic setting, thereby strengthening their understanding of the material. The 10th Edition now includes examination of the financial statements of retail giants, Walmart and Target, Wildhorse Resources, and many more.
• Finance at Work describes corporate finance in action, covering the “green bonds” issued by Apple, stock quotes in the Wall Street Journal, and more.
• Figures further illustrate concepts, such as the dramatic differences in capital structures used by firms in very different types of industries.

Tools to help students check their understanding

• Key Terms list new terminology in the chapter and a brief definition of each.
• Chapter Summaries recap for students the concepts, new terminology, and key equations that were presented in each learning objective.
• End-of-Chapter Study Problems, organized by learning objective, give students the opportunity for practice and help both instructors and learners readily align text and problem materials. Problems in the 10th Edition have been updated to reflect changes to the US tax code.

MyLabTM Finance is not included. Students, if MyLab Finance is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN. MyLab Finance should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.

Reach every student with MyLab

• Pearson eText is a simple-to-use, mobile-optimized, personalized reading experience available within MyLab. It lets students highlight, take notes, and review key vocabulary all in one place and gives them access to the help they need, when they need it. Educators can easily share their own notes with students so they see the connection between their eText and what they learn in class.