Financial Management: Principles & Applications, 14th edition

Published by Pearson (March 14, 2024) © 2025
  • Sheridan Titman
  • Arthur J. Keown
  • John D. Martin

Title overview

For corporate finance and financial management courses.

An approachable introduction to financial decision-making

Students often struggle to see how financial concepts relate to their daily routines and prospective careers. Financial Management gives students a big picture perspective of finance and how it’s important in their personal and professional lives. Using 5 key principles, the text weaves in real-world issues to demonstrate the practical applications of critical financial concepts.

The 14th Edition has been updated with brand new Personal Applications of Corporate Finance features, study problems, and the latest data and current events.

Hallmark features of this title

  • The 5 Principles of Finance are introduced in the first chapter and then woven throughout the book. This provides a foundation in financial decision making which students can later use to solve problems.
  • Real-World Examples enhance the relevance of the topics discussed.
  • Checkpoints provide a consistent problem-solving technique that walks students through each problem in 5 steps, including an analysis of the solution.
  • Regardless of Your Major boxes explain why the issues in the chapter are relevant to students who are not finance majors.
  • Tools of Financial Analysis boxes serve as a quick reference guide for critical equations used to support financial decision making.
  • Finance in a Flat World boxes show how each chapter’s content applies to international business.

New and updated features of this title

  • NEW: Brand new Personal Applications of Corporate Finance features illustrate how the principles of corporate finance may be applied by students to their own personal finances. This increases student engagement and understanding of these often challenging concepts.
  • EXPANDED: End-of-Chapter Study Questions help students evaluate their skills and knowledge with the most current financial management info available. They also provide better problem choices for instructors.
  • UPDATED: The latest data and recent events help bring currency to your course.
  • UPDATED: Chapter Summaries have been rewritten and are organized around the chapter objectives to keep students focused on salient points.

Key features

Features of MyLab Finance for the 14th Edition

  • Using proven, field-tested technology, auto-graded Excel Projects allow instructors to seamlessly integrate Excel™ content into their course.
  • Learning Cataytics pose questions to help students recall ideas and apply concepts. They respond on their own devices.
  • Question Help. If students get stuck on a homework or practice question in MyLab, Learning Aids, such as Help Me Solve This walk them through the problem and identify helpful info in the text.
  • Students have access to a fully functional financial calculator inside MyLab Finance.

Table of contents

PART 1: INTRODUCTION TO FINANCIAL MANAGEMENT

  1. Getting Started: Principles of Finance
  2. Firms and the Financial Markets
  3. Understanding Financial Statements
  4. Financial Analysis: Sizing Up Firm Performance

PART 2: VALUATION OF FINANCIAL ASSETS

  1. The Time Value of Money: The Basics
  2. The Time Value of Money: Annuities and Other Topics
  3. An Introduction to Risk and Return: History of Financial Market Returns
  4. Risk and Return: Capital Market Theory
  5. Debt Valuation and Interest Rates
  6. Stock Valuation

PART 3: CAPITAL BUDGETING

  1. Investment Decision Criteria
  2. Analyzing Project Cash Flows
  3. Risk Analysis and Project Evaluation
  4. The Cost of Capital

PART 4: CAPITAL STRUCTURE AND DIVIDEND POLICY

  1. Capital Structure Policy
  2. Dividend and Share Repurchase Policy

PART 5: LIQUIDITY MANAGEMENT AND SPECIAL TOPICS IN FINANCE

  1. Financial Forecasting and Planning
  2. Working-Capital Management
  3. International Business Finance
  4. Corporate Risk Management

Author bios

About our authors

Sheridan Titman is the McAllister Centennial Chair in Financial Services at the University of Texas at Austin and a Research Associate of the National Bureau of Economic Research. Prior to joining the faculty at the University of Texas, he was a Professor at UCLA, the Hong Kong University of Science and Technology and Boston College. In addition to his academic experience, Sheridan spent the 1988 to 89 academic year in Washington, DC as the special assistant to the Assistant Secretary of the Treasury for Economic Policy and has done occasional consulting with financial institutions. His research covers a broad range of topics and has been recognized by a number of awards, including the Smith-Breeden best paper award for the Journal of Finance, the GSAM best paper award for the Review of Finance, and the Wharton-Jacobs Levy Prize for Quantitative Financial Innovation. Sheridan has been active in the leading academic associations, having served as President of the Western Finance Association, the American Finance Association and the American Real Estate and Urban Economics Association, as well as a Director of the American Finance Association, the Western Finance Association, the Financial Management Association and the Asia Pacific Finance Association.

Arthur J. Keown is an Alumni Distinguished Professor and the R. B. Pamplin Professor of Finance at Virginia Tech. He received his bachelor's degree from Ohio Wesleyan University, his MBA from the University of Michigan, and his doctorate from Indiana University. An award-winning teacher, he is a member of the Academy of Teaching Excellence at Virginia Tech. He has received 5 certificates of Teaching Excellence, the W.E. Wine Award for Teaching Excellence, and the Alumni Teaching Excellence Award. In 1999, he received the Outstanding Faculty Award from the State of Virginia. Professor Keown is widely published in academic journals. His work has appeared in the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Journal of Financial Research, Journal of Banking and Finance, Financial Management, Journal of Portfolio Management, and many others. Two of his books, Foundations of Finance: The Logic and Practice of Financial Management, and Personal Finance: Turning Money into Wealth, are widely used in college finance classes all over the country. Professor Keown is a Fellow in the Decision Sciences Institute, and has served as a member of the Board of Directors of the Financial Management Association. In addition, he has served as the co-editor of both the Journal of Financial Research and the Financial Management Association's Survey and Synthesis Series. He was recently inducted into Ohio Wesleyan's Athletic Hall of Fame for wrestling. He has 2 children, 3 granddaughters and lives with his wife in Blacksburg, Virginia, where he collects original art from Mad Magazine.

John D. Martin is professor emeritus at Baylor University where he was the Carr P. Collins Chair of finance and is also a retired professor of finance from the University of Texas at Austin where he held the Margaret and Eugene McDermott Professorship in Finance. He now lives on a ranch near Crawford, TX where he and his wife raise Braunvieh-Angus cattle, bale hay and enjoy a pastoral life. In his prior life as a finance professor John taught for almost a half century earning a number of teaching awards, published over 90 articles in the leading finance journals, and coauthored 10 books including Financial Management: Principles and Practice (14th edition, Pearson), Foundations of Finance (10th edition Pearson), Valuation: The Art and Science of Corporate Investment Decisions (3rd edition, Pearson) and Value Based Management with Social Responsibility (2nd edition, Oxford University Press). When not involved in farming and ranching John feeds his learning habit by remaining an active researcher and writer. His current research interests focus on America’s energy dependence problem as it relates to the economics of unconventional energy sources, examining the growing importance of water issues in his home state of Texas, educating entrepreneurs concerning the cost of venture funding, investigating the economic factors underlying differences in the capital costs in developed and emerging economies, and researching the securitized corporate loan market. Finally, John’s abiding passion is to create a book series that focuses on needs of the next generation of finance professionals.

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