content •First Introductory book to cover CAPM •First to differentiate expected and required returns •First to discuss the intrinsic value of stocks presentation •First timelines to explain TVM •First financial calculators to solve TVM problems •First NPV profiles in capital budgeting analysis •First Mini-Cases to integrate chapter concepts •First Spreadsheet Problems support •First with Aplia™ for Finance •First Lecture Presentation software •First with WordPerfect Test Bank •First with Blueprints Brigham/Houston, the first name in finance education today, is the last name you need to remember. Because for Brigham/Houston, First in Finance is not a mere description of who we are, but a promise of what we deliver, edition after edition, course after course, to keep you and your students on the forefront of financial management success. Whether it’s Fundamentals of Financial Management or one of the many other leading Brigham products, you can depend on the remarkable authorship team that reshaped financial education over the years to provide the latest innovations, unforgettable content, and exceptional learning tools and support you won’t find anywhere else. Trust Brigham/Houston to place you and your students first in finance every time. vii See it Here First! Brigham/Houston’s Fundamentals of Financial Management, 12e & Concise, 6e Concise. Complete. A True Contemporary Classic. Like each of Brigham/Houston’s market-leading solutions, Fundamentals of Financial Management brings you the best in finance first with a classic combination of hallmark strengths and contemporary innovations. You’ll find everything you and your students need to remain on the forefront of today’s financial management education with this leading text’s unique balance of contemporary theory and practical applications. The renowned author team’s emphasis on Time Value of Money (TVM) is now repositioned to allow students to immediately use the concepts after learning them. A compact, strong foundation in the basics is punctuated with timely examples, meaningful applications, Integrated Cases, and Spreadsheet Models. Supplements, prepared by the text authors to mirror the quality consistent within the text, are now strengthened with yet another first, Aplia™ for Finance. Count on this contemporary classic for first in finance coverage today! First-Rate Presentation with First-Class Support First to Offer the Aplia™ Advantage Engage. Prepare. Educate. Aplia has two interactive learning solutions to help your students succeed in the classroom: Aplia for Finance Aplia for Finance is an interactive learning solution that makes finance relevant and engaging, while ensuring that students practice the application of course concepts on a regular basis. Aplia assignments are automatically graded and include detailed feedback on every question. • • • • • Problem Sets Preparing for Finance Tutorials News Analyses Course Management System Digital Textbook Aplia’s Preparing for Finance Make sure your students have the fundamental skills to succeed in finance with Aplia’s Preparing for Finance tutorials. These interactive tutorials ensure that students confront and overcome deficiencies in prerequisite math, accounting, economics, and statistics. A tutorial on using financial calculators is also included. For more information on how Aplia could benefit you, visit www.aplia.com/finance today! viii Proven Test Bank Stronger Than Ever with Algorithmic Flexibility Test your students’ knowledge of critical finance concepts and techniques simply and efficiently with this thoroughly revised, substantial test bank that offers 1,200 class-tested questions and problems, including new true/false and multiple-choice questions. ExamView™ Computerized Testing Software allows you to easily algorithmically modify problems to create unlimited versions of the test or specific problems—ideal for instructors who teach a large number of students. First in Content. Best in Strength. Time Value of Money (TVM) Allows Students to Immediately Practice Concepts Based on your feedback, the authors have relocated TVM coverage from Chapter 2 to Chapter 5 to provide a stronger foundation and seamless flow into concepts that follow. Students no longer have to wait, but are able to begin applying TVM concepts immediately after learning them, which deepens their understanding. New Self-Test Problems Ensure Immediate Understanding New focused Self-Test Problems now appear immediately after each major section of the chapter, allowing students to check their comprehension right away rather than waiting until the end of the chapter. Ethics Coverage Expanded for Today’s Times Additional coverage of ethics in this new edition allows you to easily and time-efficiently locate and integrate critical ethics discussions at appropriate points within your course. ix Consistent Strengths of a Contemporary Classic Unique Balance of Theory and Practice Leads Today’s Learning A hallmark strength of these leading finance texts, both versions clearly introduce important financial theories using a unique, practically focused presentation. Students apply the text’s theories and trends using proven learning features, a wealth of real-world examples, practical problem sets, and Integrated Mini-Cases. Integrated Spreadsheet Models Help Perfect Problem-Solving Skills More than just Excel templates, these unique Integrated Spreadsheet Models accompany each chapter (except Ch. 1) to assist students in developing effective techniques for financial problem solving. Spreadsheet Models serve as focused tutorials that show students how to maximize Excel as a powerful finance tool. Renowned Contemporary Author Team Ensures Innovative Approach The premier Brigham/Houston authorship team combines Gene Brigham’s extensive teaching background and more than 40 years of text writing experience, with Joel Houston’s recognized contemporary scholarship and forward thinking, to deliver a consistently innovative approach that’s first in finance today. Author-Written Support Mirrors Text Quality and Consistency Since the first edition, all supplements have been written by the text authors to ensure the same level of accuracy and precision crafting that has made this text a leader. First-Class Supplement Support in Author-Written Package Instructor’s Resource CD-ROM (IRCD) Place teaching resources at your fingertips with this all-in-one resource that includes the Instructor’s Manual, Word Test Bank, Spreadsheet Models, solutions to Spreadsheet Problems, and PowerPoint® slides. These supplements can also be found on the text Companion Web site: www.cengage.com/brigham. PowerPoint® Lecture Presentation Software Bring lectures to life as new, colorful PowerPoint slides cover the essential topics for each chapter. Graphs, tables, lists, and calculations are developed sequentially for your convenience. Easily modify slides for your specific needs. Slides are available on the IRCD or Companion Web site: www.cengage.com/brigham. x Spreadsheet Models for Excel Study Guide Easily illustrate the application of spreadsheets to finance concepts using Spreadsheet Models and the book’s Integrated Case data. Spreadsheet models show students how to best utilize Excel as a finance tool. Spreadsheet models are available on the IRCD or Companion Web site: www.cengage.com/brigham. Give your students essential support as this invaluable tool, written by the text authors, lists learning objectives for each chapter, outlines key sections, provides self-test questions, and offers an additional set of problems with fully completed solutions. Strengthened Test Bank Instructor’s Manual Save time with this tool’s answers to all text questions and problems, detailed solutions to the Integrated Cases, descriptions of how to best use all available supplements, sample syllabus and course schedule. A digital version is available on the IRCD or password-protected Companion Web site: www.cengage.com/brigham. Fundamentals of Financial Management Companion Web site www.cengage.com/brigham Place your students first in finance with the leading learning tools and convenient, password-protected resources found on this dynamic companion Web site. Easily access digital versions of the authorwritten supplements. This edition’s significantly revised Test Bank provides more than 1,200 class-tested questions and problems. Each question includes information regarding the topic, degree of difficulty, correct answers, and completed numerical solutions. ExamView™ Electronic Testing with Algorithmic Convenience Make test preparation, scoring and grading easy with this reliable testing software. This fully-customizable algorithmic test bank allows you to create unlimited variations of each test or specific problems, which is particularly useful for large class enrollments. iChapters.com, Cengage Learning’s online store, is a single destination for more than 10,000 new print textbooks, e-books, single e-chapters, and print, digital and audio supplements. Students have the freedom to purchase a-la-carte exactly what they need when they need it. Save your students time and money. Tell them about www.iChapters.com for choice, savings . . . and a better chance to succeed in your class. Brigham/Houston Community Web site www.cengage.com/community/brigham Be first in finance with the latest financial innovations for you and your students. Download demonstrations of the latest Brigham/Houston technology. Discover how the valuable tools and technology offered in this leading family of products will keep you first in finance throughout the year! xi Engage. Prepare. Educate. Help your students learn finance with Aplia’s online, interactive homework solution. Trusted by over 3,400 instructors and 900,000 students worldwide, Aplia has become an industry leader in online learning solutions. Aplia™ for Finance • Problem Sets: Chapter-specific problem sets ensure that students are completing finance assignments on a regular basis. • Preparing for Finance Tutorials: Interactive tutorials help students overcome skill deficiencies in prerequisite subjects that would otherwise prevent them from learning finance. Aplia also includes tutorials on using financial calculators. • News Analyses: Students connect course concepts to real-world events by reading relevant news articles and answering graded questions about them. • Course Management System • Digital Textbook Preparing for Finance • Interactive tutorials ensure that students overcome skill deficiencies in prerequisite subjects • Reviews accounting, economics, math, and statistics • Teaches students how to use a financial calculator For more information on how Aplia could benefit you, visit www.aplia.com/finance. xii Do you want your students to bring concepts to life with real data? Do you want to give them current information for research projects? Do you want them to conduct their research online? Thomson ONE – Business School Edition (BSE) meets all of these needs! Integrated throughout the book, Thomson ONE – Business School Edition places the same tool that Wall Street analysts, traders, and finance professionals use every day into students’ hands. This powerful database of financial information based on Thomson Financial’s commercially available product, Thomson ONE Banker, allows students to access financials, earnings estimates, market data and Excel worksheets from thousands of domestic and international companies. Free with every new text! Each new edition of Fundamentals of Financial Management, 12e or Concise, 6e comes with a Thomson ONE – Business School Edition registration card which gives students access to this valuable tool. For more information, visit www.cengage.com/thomsonone today! For a First-Class Approach that’s a Favorite Every Time, Take a Look at the Pages that Follow. See For Yourself how Brigham/Houston’s Fundamentals of Financial Management Keeps You and Your Students First in Finance with this Contemporary Classic Approach! xiii