New Features:

• Cutting-edge coverage of dividends. Chapter 16, Dividends and Payouts, has been extensively rewritten to reflect the most up-to-date thinking in dividends and dividend policy, synthesizing the main ideas and empirical evidence from a number of very recent published and unpublished studies.

• New Calculator Appendix: Intended to help student use the Hewlett-Packard HP 10B or Texas Instruments BA II Plus financial calculators for solving problems encountered in an introductory finance course.

• Thorough updates throughout the text. All chapter opening vignettes, in-chapter real-world examples, and The Real World readings have all been revamped, rewritten or replaced. Facts and figures throughout have been updated, and the already extensive end-of-chapter material has been revised and expanded. End-of-chapter cases have been rewritten, tying them to a single case so that a common thread runs through them.

• New material in several chapters , including:
• A discussion of the effect of excess capacity on external funds needed in Chapter 3.
• New material on loan amortization in Chapter 4.
• Expanded discussion of taxes and zero coupon bonds in Chapter 5.
• Flotation costs and their effect on cost of capital in Chapter 12.
• Trade credit as a source of short term-financing in Chapter 18.

• Mini-Cases , a “thread case” located at the end of each chapter, focuses on real-life company situations that embody important corporate finance topics. These cases have changed from the first edition - they are tied to a single case so that a common thread runs through them. Students are given questions so that they can focus on all of the material learned from the chapter.

Retained Features:

• Chapter Opening Cases feature real-world events to introduce students to the chapter concepts.

• Numbered and titled examples are extensively integrated into the chapters. These examples provide detailed applications and illustrations of the text material in a step-by-step format. Each example is completely self-contained so students don’t have to search for additional information.

• Exploring information found in recent publications and building on concepts learned in each chapter, the Real World box works through real-world issues relevant to the surrounding text.

• Spreadsheet techniques introduce students to Excel spreadsheet skills, particularly as they relate to corporate finance. This feature appears in self-contained sections and shows students how to set up spreadsheets to analyze common financial problems—a vital part of every business student’s education.

• Within the margins of the text, explanatory Web links are used. They are specifically selected to accompany text material and to provide students and instructors with a quick way to check for additional information using the internet.

• Located throughout the text, important ideas are pulled out and presented as a “Highlighted Concept.” The highlighted box signals to the students that this material is particularly relevant and critical for their understanding.

• Key equations are listed within the text and listed on the back end sheets for easy reference.

• Indicated by an Excel icon in the margin, Excel problems can be found at the end of almost all chapters. The book’s Website contains Excel templates for each of the problems so students can use the data in the problem to work out the solution using Excel skills.

• A chapter summary is provided at the end of each chapter with a numbered, concise, yet thorough summary of the important ideas—helping students review the key points in the chapter.

• Concept Questions, located in the end-of-chapter materials, facilitates the knowledge of key principles, as well as intuitive understanding of the chapter concepts. A number of questions relate to the chapter opening case, reinforcing critical-thinking skills and the learning of the chapter material.

• The extensive Questions and Problems section of the EOC contains quantitative problems from the chapter, many of which are excel based.

• S&P Problems provide an easy, online way for students to incorporate current, real-world data into their learning. Most chapters include two or three end-of-chapter problems that require the use of the Educational Version of Market Insight, Standard & Poor’s powerful and well-known Compustat database (free access packaged with each new book.)

• What’s on the Web, an end of chapter activity, shows students how to access and learn from the vast amount of financial resources available on the Internet.

• Solid end-of-chapter material including Summary and Conclusions, Concept Questions, Questions and Problems, S&P Problems, Excel Problems, and What’s on the Web, and Mini-Cases.