• Coverage of financial statement analysis closer to the discussion of accounting and finance. Measuring Corporate Performance, previously Chapter 17, has been made Chapter 4 in Part 1 to accompany the previous chapter on accounting and finance. Chapter 4 has also been extensively revised to include a sharper focus on how financial data can be used to measure contribution to firm value.



• Revised chapter on valuing stocks. Chapter 7 now starts with a review of stock markets and trading procedures and motivates the following treatment of stock valuation with a small case study of an investor considering whether to purchase a particular stock, FedEx. The discussion commences with valuation by comparables and the distinction between price and intrinsic value.



• Reorganization and update of material on financial planning in Part 6. In Chapter 20 (Working Capital Management), the treatments of credit scoring have been updated along with the discussion of cash management, which has changed considerably as the technology of cash transfers has advanced.



• Revised Part 7 on special topics. Chapter 21 (Mergers) has been fully reorganized, and now begins with an overview of why mergers and other forms of reorganization may make sense, and only then is the progression to the market made for corporate control. The other chapters in this Part have been updated with new examples and data.



• The discussion of project cash flow has been reworked to more carefully show how each of its components can be estimated.



• The discussions of stock repurchases and dividend policy have been rewritten to reflect recent trends and research.



• Updated section on bank lending is featured in Chapter 19 (Short-Term Financial Planning).