Stanley B. Block,
Texas Christian University Geoffrey A. Hirt,
DePaul University
ISBN: 0073027200 Copyright year: 2008
What's New
The 12th edition has continued to provide updated real-world examples, using companies easily recognized by students to illustrate financial concepts in the text. There is a listing of selected Real-World Examples and Boxes among the front matter for easy reference.
New Practice Problems and solutions — two practice problems are featured at the end of each chapter. The problems review concepts illustrated within the chapter and enable the student to determine whether the material has been understood prior to completing the problem sets. Detailed solutions to the practice problems are found immediately following the problem.
Expanded Finance in Action boxes. Boxed readings highlight specific topics of interest that relate to four main areas: managerial decisions, global situations, technology issues, and ethics (new). Given the corporate scandals and resulting corporate governance issues, the addition of ethics as a new area strengthens the relevancy.
Part openers now feature related part Web sites so the most current and relevant information on the Web can be easily referenced.
Chapter 1 includes new coverage of the critical role of the board of directors in corporate decisions. The fiduciary responsibility of the board of directors is discussed, and the failure to meet this responsibility is pointed out in the case of Enron and WorldCom. Other ethical considerations are also included.
Everything from 9/11 to Hurricane Katrina is now covered in the new global events of the 21st century section in Chapter 14. Coverage illustrates the effect of key events on the financial markets.
New topic added— financial goals in an international market environment.Chapter 1 provides a discussion of how 3M manages corporate strategy in an environment in which 60 percent of its sales are foreign.
The use of technology to manage the investments in working capital added to Chapter 6. The authors discuss the use of sophisticated computer procedures to monitor the investment in inventory as an illustration of the integration of technology into financial management.
Chapter 11 includes a new discussion on the different use of debt by actual companies. In this chapter's coverage of cost of capital, the reader is able to view the debt strategy of 13 actual companies. Chapter 14 includes new coverage on the changing capital markets by covering the use of electronic trading and the changing role of the financial major exchanges.
The ups and downs of the euro versus the dollar and the impact on financial management new to Chapter 21 within the foreign exchange considerations in the capital markets section. International material is indicated by a globe icon in the AIE and a listing of selected International Examples and Boxes is featured among the front matter for easy reference.
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2008 McGraw-Hill Higher Education