Examples of changes made to various chapters:

• A new section on Careers in Finance is included in Chapter 1,The Firm and the Financial Manager.
• Chapter 3, The Time Value of Money, has been reorganized to include a section on inflation and the time value of money which was formerly in Chapter 4.
• Chapter 4, Valuing Bonds, is now devoted solely to bonds and includes the discussion of credit risk. A detailed example of valuing a bond with semiannual coupons has been added.
• New material on asset-backed and index bonds, as well as, more recent data on trends in corporate finance have been added to Chapter 13 An Overview of Corporate Financing.
• The Appendix to Chapter 14, How Corporations Issue Securities, discusses the environment for the financing of new and small enterprises in Canada and describes the venture capital industry and angel investing in Canada.
• Chapter 17, Financial Statement Analysis, includes a discussion of Enron’s off-balance sheet accounting, discusses the analysis of the statement of cash flows and also the measurement and interpretation of economic value added (EVA).
• Chapter 22, Leasing, has been added and covers types of leases, reasons for leasing, and the valuation of financial leases.

Other key features include:

• Chapter Opening: Each chapter begins with an overview relating the material to be covered in the chapter to the real world. Learning goals are contained in this section which are referred to again in the Summary that closes each chapter.
• Examples: Separated numbered and titled examples are extensively integrated into the chapters providing detailed applications and illustrations of the text material.
• Finance in Action Boxes: Almost every chapter includes at least one “Finance in Action” box. These are excerpts, usually from the financial press, providing real-life illustrations of the chapter’s topics, such as ethical choices in finance, new views about stock valuation, Internet IPOs, and corporate takeover battles abroad.
• International Icon: An international icon appears where the authors discuss global issues.
• Key Points: Located every few pages throughout the text, these points underscore and summarize the importance of the immediately preceding material, at the same time helping students focus on the most relevant topics critical to their understanding.
• Check Point Question: Check Point questions are provided within each chapter, and enable students to check their understanding as they read. Answers are provided at the end of the chapter.
• Key Formulas: Called out in the text, key formulas are identified by a number. A summary of key formulas can be found on the Brealey Online Learning Centre.
• Excel Spreadsheet: New Excel spreadsheet boxes provide the student with detailed examples of how to use spreadsheets when applying financial concepts.
• Calculator Boxes and Exercises: In a continued effort to help students grasp the critical concept of Time Value of Money, many pedagogical tools have been added throughout the first section of the text. Financial Calculator boxes provide examples for solving a variety of problems with directions for the three most popular financial calculators.
• End of Chapter: A variety of end-of-chapter features are offered to support the concepts presented throughout each chapter and include the following: Related Web Links, Key Terms, Questions and Problems, Spreadsheet Icons, Internet Problems, and Minicases.
• Related Web Links: Web citations listed at the end of each chapter immediately direct students to the best sources of financial information on the Internet.
• Key Terms: Throughout each chapter, key terms appear in bold type with margin definitions and are listed in the end of chapter material for easy reference.
• Questions and Problems: New end-of-chapter problems are included for even more hands-on practice. Each question is labeled by topic and is separated by level of difficulty. Answers to selected questions (identified by an asterisk) are provided in Appendix B.
• Spreadsheet Icon: To better understand important spreadsheet based problems, spreadsheet icons indicate problems specially linked to Excel based templates for further practice. These templates are available for download at the text’s Online Learning Centre.
• Internet Problems: Students are presented with problems to solve using the wealth of material available on the Internet.
• Minicases: Integrative Minicases end most chapters and allow students to apply their knowledge to relatively complex, practical situations. Great for assignments and for generating group discussion and debate beyond a single topic level.