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.

Hallmark Features

• 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.
• 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.
• 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.
• 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 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.
• 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.
• Use of an integrated learning system. The text is organised 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.
• Concept Check questions at the end of major chapter sections highlight key ideas presented in the section.
• Financial Calculators throughout the text display solutions, especially with respect to the presentation of the time value of money and valuation.
• Financial Decision Tools recap key equations shortly after their application in the chapter.
• 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. New and Expanded - End-of-Chapter Study Problems, organised 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

New and updated features of this title

• REVISED: Coverage is updated in response to the latest financial thought, reviewer comments, and passage of the Tax Cuts and Jobs Act of 2017. It includes recent developments in the financial markets, new tax laws and their implications, and changes to interest and exchange rates.
• NEW: Streamlined presentation of chapter topics makes it easier for students to review and retain the material.
• UPDATED: Chapter-Opening Vignettes tell stories about current, real-world companies (such as Disney) faced with a financial decision related to the chapter material.
• NEW and UPDATED: Examples using real individuals and companies such as Nike and eBay, let students see concepts in action.
• UPDATED: Mini Cases help students apply chapter concepts to realistic settings. Examination of the financial statements of retail giants like Walmart and Target is now included.
• UPDATED: End-of-Chapter Study Problems provide extra practice opportunities and reflect changes to the US tax code.