The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management / Edition 1

Hardcover (Print)
Buy New
Buy New from BN.com
$64.05
Used and New from Other Sellers
Used and New from Other Sellers
from $58.16
Usually ships in 1-2 business days
(Save 41%)
Other sellers (Hardcover)
  • All (10) from $58.16   
  • New (7) from $58.16   
  • Used (3) from $64.04   

Overview

Written by the experienced author team of Pamela Peterson Drake and Frank Fabozzi, The Basics of Finance puts the essential elements of this discipline in perspective and will allow you to gain a better understanding of today's dynamic world of finance.

Divided into four comprehensive parts, this reliable resource will help you to see how all the pieces of finance fit together. Page by informative page, The Basics of Finance:

  • Provides the basic framework of the financial system and the players in this system
  • Discusses financial management and topics such as financial statement analysis and financial decision-making within a business enterprise
  • Examines the analytical part of finance, which involves valuing assets and analyzing performance
  • Covers the essentials of investment management, which includes portfolio theory and asset pricing

Along the way, sample problems with detailed solutions are provided in many chapters, allowing you to practice any math demonstrated in those specific sections. End-of-chapter questions are also included for each chapter, along with select solutions easily accessible on the companion Web site, so you can test your knowledge of the basic terms and concepts discussed in each chapter.

If you're looking to gain an understanding of what finance is really about at the fundamental level, look no further than this book.

Read More Show Less

Product Details

  • ISBN-13: 9780470609712
  • Publisher: Wiley
  • Publication date: 9/21/2010
  • Series: Frank J. Fabozzi Series , #192
  • Edition number: 1
  • Pages: 604
  • Sales rank: 400,859
  • Product dimensions: 6.40 (w) x 9.10 (h) x 2.20 (d)

Meet the Author

PAMELA PETERSON DRAKE, PhD, CFA, is the J. Gray Ferguson Professor of Finance and Department Head of Finance and Business Law at James Madison University. She received her PhD in finance from the University of North Carolina at Chapel Hill and her BS in accountancy from Miami University. Professor Drake previously taught at Florida State University and Florida Atlantic University.

Frank J. Fabozzi, PhD, CFA, CPA, is Professor in the Practice of Finance and Becton Fellow at the Yale School of Management and Editor of the Journal of Portfolio Management. Fabozzi earned a doctorate in economics from the City University of New York. He is an Affiliated Professor at the University of Karlsruhe's Institute of Statistics, Econometrics, and Mathematical Finance and is on the Advisory Council for the Department of Operations Research and Financial Engineering at Princeton University.

Read More Show Less

Table of Contents

Preface.

Acknowledgments.

Chapter 1 What is Finance?

Capital Markets & Capital Market Theory.

Financial Management.

Investment management.

Organization of this book.

The Bottom Line.

Questions.

Part One: The Financial System.

Chapter 2 Financial Instruments, Markets, and Intermediaries.

The financial system.

The Role of Financial Markets.

The role of financial intermediaries.

Types of financial markets.

The Bottom Line.

Questions.

Chapter 3 The Financial System’s Cast of Characters.

Domestic nonfinancial sectors.

Nonfinancial businesses.

Domestic financial sectors.

The foreign sector.

The Bottom Line.

Questions.

Part Two: Financial Management.

Chapter 4 Financial Statements.

Accounting principles: What are they?

The basic financial statements.

How are the statements related?

Why bother about the footnotes?

Accounting flexibility.

U.S. accounting v. outside of the U.S.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 5 Business Finance.

Forms of business enterprise.

The objective of financial management.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 6 Financial Strategy and Financial Planning.

Strategy and value.

The budgeting process.

Budgeting.

Performance evaluation.

Strategy and value creation.

The Bottom Line.

Questions.

Chapter 7 Dividend and Dividend Policies.

Dividends.

Stock distributions.

Dividend policy.

Stock repurchases.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 8 The Corporate Financing Decision.

Debt v. equity.

Financial leverage and risk.

Financial distress.

The cost of capital.

Optimal capital structure: Theory and practice.

The Bottom Line.

Solutions to Try It! Problems.

Questions.

Chapter 9 Investment Management.

Setting investment objectives.

Establishing an investment policy.

Constructing and monitoring a portfolio.

Measuring and evaluating performance.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Part Three: Valuation and Analysis Tools.

Chapter 10 Time Value of Money.

Why the time value of money?

Calculating the future value.

Calculating a present value.

Determining the unknown interest rate.

The time value of a series of cash flows.

Annuities.

Loan amortization.

Interest rates and yields.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 11 Financial Ratio Analysis.

Classifying financial ratios.

Liquidity.

Profitability ratios.

Activity ratios.

Financial leverage.

Return on investment.

The Du Pont system.

Common-size analysis.

Using financial ratio analysis.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 12 Cash Flow Analysis.

Difficulties with measuring Cash Flow.

Free cash flow.

Usefulness of cash flows analysis.

Ratio analysis.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 13 Capital Budgeting.

Investment decisions and owners' wealth.

The capital budgeting process.

Determining cash flows from investments.

Capital budgeting techniques.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Part Four: Investments.

Chapter 14 The World of Derivatives.

Futures and forward contracts.

Options.

Swaps.

The Bottom Line.

Appendix: Black-Scholes option pricing model.

Solutions to Try it! Problems.

Questions.

Chapter 15 Financial Risk Management.

The definition of risk.

Enterprise risk management.

Managing risks.

The Bottom Line.

Questions.

Chapter 16 The Theory of Portfolio Selection.

Some basic concepts.

Estimating a portfolio's expected return.

Measuring portfolio risk.

Portfolio diversification.

Choosing a portfolio of risky assets.

Behavioral finance and portfolio theory.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 17 Asset Pricing Theory: The Capital Asset Pricing Model.

Characteristics of an asset pricing model.

Overview of the capital asset pricing model.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 18 The Structure of Interest Rates.

The base interest rate.

The term structure of interest rates.

Term structure of interest rates theories.

Swap rate yield curve.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 19 Valuing Common Stock.

Discounted cash flow models.

Relative valuation methods.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Chapter 20 Valuing Bonds.

Valuing a bond.

Conventional yield measures.

Valuing bonds that have embedded options.

The Bottom Line.

Solutions to Try it! Problems.

Questions.

Appendix: Solutions to End of Chapter Questions and Problems.

Glossary.

About the Authors.

Index.

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)