This casebook covers all major decision making areas of financial management with 57 cases based on actual situations. New to the third edition are cases involving risk-adjusted discount rates, the use of simulation in a capital budgeting setting, the capital asset pricing model, and small business valuation.
It explores the "big picture" and actual practice—i.e., financial decision making rooted in current financial theory and in the current state of world economic conditions. Presents the tools, techniques, and equations of financial management but stresses—and presents in an intuitive way—the logic and the fundamentals that drive their use. Focuses on the creation of wealth—emphasizing the concepts of the time value of money, cash flows as opposed to accounting profits, the net present value, and risk-return tradeoffs. Gives strong attention to the capital markets and their influence on corporate financial decisions.