Javascript required
Skip to content Skip to sidebar Skip to footer
Home / Fundamentals of Financial Management Concise 9e Solutions

Fundamentals of Financial Management Concise 9e Solutions

Fundamentals of Financial Management, Concise Edition, 9th Edition

Fundamentals of Financial Management, Concise Edition

Published: © 2017

Print ISBN: 9781305635937

Pages: 688

Available

Continuing to set the standard for quality, reliability, accuracy, and innovation, Brigham/Houston's market-leading FUNDAMENTALS OF FINANCIAL MANAGEMENT, CONCISE EDITION 9E provides a unique balance of clear concepts, current theory, and hands-on applications -- with early coverage of Time Value of Money and an emphasis on the concept of valuation throughout. Thorough coverage of the basics helps students understand the concepts… More

For Instructors

For Students

  • Digital Solutions

  • Table of Contents

  • New to this edition

  • Features

  • About the author(s)

Part I: INTRODUCTION TO FINANCIAL MANAGEMENT.
1. An Overview of Financial Management.
2. Financial Markets and Institutions.
Part II: FUNDAMENTAL CONCEPTS IN FINANCIAL MANAGEMENT.
3. Financial Statements, Cash Flow, and Taxes.
4. Analysis of Financial Statements.
Web Appendix 4A: Common Size and Percent Change Analyses.
5. Time Value of Money.
Web Appendix 5A: Continuous Compounding and Discounting.
Web Appendix 5B: Growing Annuities.
Part III: FINANCIAL ASSETS.
6. Interest Rates.
7. Bonds and Their Valuation.
Web Appendix 7A: Zero Coupon Bonds.
Web Appendix 7B: Bond Risk and Duration.
Web Appendix 7C: Bankruptcy and Reorganization.
8. Risk and Rates of Return.
Web Appendix 8A: Calculating Beta Coefficients.
9. Stocks and Their Valuation.
Appendix 9A: Stock Market Equilibrium.
Part IV: INVESTING IN LONG-TERM ASSETS: CAPITAL BUDGETING.
10. The Cost of Capital.
Web Appendix 10A: The Cost of New Common Stock and WACC.
11. The Basics of Capital Budgeting.
12. Cash Flow Estimation and Risk Analysis.
Appendix 12A: Tax Depreciation.
Web Appendix 12B: Refunding Operations.
Web Appendix 12C: Using the CAPM to Estimate the Risk-Adjusted Cost of Capital.
Web Appendix 12D: Techniques for Measuring Beta Risk.
Web Appendix 12E: Comparing Mutually Exclusive Projects with Unequal Lives.
Web Appendix 12F: Real Options: Investment Timing, Growth, and Flexibility.
Part V: CAPITAL STRUCTURE AND DIVIDEND POLICY.
13. Capital Structure and Leverage.
Web Appendix 13A: Degree of Leverage.
14. Distributions to Shareholders: Dividends and Share Repurchases.
Web Appendix 14A: An Example: The Residual Dividend Model.
Part VI: WORKING CAPITAL MANAGEMENT, FORECASTING, AND MULTINATIONAL FINANCIAL MANAGEMENT.
15. Working Capital Management.
Web Appendix 15A: Inventory Management.
Web Appendix 15B: Short-Term Loans and Bank Financing.
16. Financial Planning and Forecasting.
Web Appendix 16A: Forecasting Financial Requirements When Financial Ratios Change.
17. Multinational Financial Management.
Appendix A: Solutions to Self-Test Questions and Problems.
Appendix B: Answers to Selected End-of-Chapter Problems.
Appendix C: Selected Equations and Tables.

  • Completely revised and up to date, FUNDAMENTALS OF FINANCIAL MANAGEMENT: CONCISE EDITION, 9e includes the latest research, trends, and developments from the field. Updated real-world examples reflect current situations affecting today's companies. In addition, approximately 40 percent of the book's problems have been revised.
  • Providing even more flexibility and options for hands-on applications, Thomson One problems have been repurposed to be used with Internet resources. New problems have been added for Chapters 6, 7, and 17.
  • The innovative new Adaptive Test Prep app helps student maximize their study time. Students decide how many quiz questions they want to review, and the app generates a preparatory quiz -- using questions similar to exam questions. The app provides students with feedback on every question, and students can continue practicing until they feel confident about taking the exam.
  • MindTap's PREPARING FOR FINANCE tutorials ensure that students confront and overcome deficiencies in prerequisite math, accounting, economics, and statistics. A tutorial on using financial calculators is also included.
  • QUICK QUESTIONS: Located in key chapters, these questions are set aside in boxes within the text. After posing the question, the exercise walks students step-by-step through the process of finding its solution. The authors designed these questions to parallel the activity in a classroom setting, in which students go through an example to make concepts more concrete.
  • INSIGHTFUL REAL-WORLD EXAMPLES: To help students bridge the gap between concept and application, the authors highlight many real-life examples throughout the text, including a broad discussion of the role of hedge funds and private equity of major firms, a detailed breakdown of the cash conversion cycle components for several leading companies, and up-to-date coverage of corporate bond ratings, yields, and dividend payouts for a broad range of companies.
  • CURRENT EXCEL MODELS: Giving students hands-on experience using Excel® to problem-solve, up-to-date spreadsheet models parallel the discussion of each topic and also incorporate in-text graphics to quickly show students how many of the problems can be solved using Excel®.
  • FOCUSED SELF-TEST PROBLEMS ENSURE STUDENT UNDERSTANDING THROUGHOUT THE CHAPTER. Strategically placed Self-test Problems appear immediately after each major section of the chapter, enabling students to test their comprehension as they work through the text, instead of waiting until the conclusion of the chapter.
  • AUTHOR-WRITTEN SUPPLEMENT SUPPORT PROVIDES CONSISTENCY THROUGHOUT COMPREHENSIVE PACKAGE. Instructors and students will find the same level of accuracy and precision crafting that has made this text a leader throughout all of this edition's supplements. Prepared by the text authors to ensure consistency, this seamless, integrated package includes a comprehensive Instructor's Manual and sizeable Test Bank, as well as numerous digital resources.
  • UNIQUE BALANCE OF THEORY AND PRACTICE KEEPS TODAY'S STUDENTS ENGAGED AND FOCUSED. The hallmark strength of this leading finance text is that it clearly introduces important financial theories using a practically focused presentation. Students immediately see the impact and importance of financial theories and trends at work through proven learning features, a variety of current real financial and business world examples, practical problem sets, and integrated mini-cases.
  • INTEGRATED SPREADSHEET MODELS HELP STUDENTS REFINE FINANCIALPROBLEM-SOLVING TECHNIQUES. More than just Excel® templates, these integrated Spreadsheet Models accompany all but the first chapter and guide students in developing effective techniques for financial problem solving. Spreadsheet Models serve as useful tutorials that demonstrate how to maximize Excel® as a powerful finance tool.
  • Available with the ninth edition, MindTap® -- Cengage Learning's fully online, highly personalized learning experience -- combines readings, multimedia, activities, and assessments into a singular Learning Path, which now includes an Interactive Chapter Reading, Problem Demonstrations, BluePrint Problems, and the Online Homework Assignment. Instructors can personalize the Learning Path for their students by customizing the robust suite of Brigham/Houston 9e resources and adding their own content via apps that integrate into the MindTap® framework seamlessly with Learning Management Systems.

Eugene F. Brigham

Dr. Eugene F. Brigham is graduate research professor emeritus at the University of Florida, where he has taught since 1971. He received his M.B.A. and Ph.D. from the University of California-Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin and the University of California-Los Angeles. A former president of the Financial Management Association, he has written many journal articles on the cost of capital, capital structure and other aspects of financial management. He has authored or co-authored 10 textbooks on managerial finance and managerial economics that are used at more than 1,000 universities in the United States and have been translated into 11 languages worldwide. In addition to his academic writing, Dr. Brigham continues to teach, consult and complete research. He has served as a consultant to many corporations and government agencies, including the Federal Reserve Board, the Federal Home Loan Bank Board, the U.S. Office of Telecommunications Policy and the RAND Corp. He has also testified as an expert witness in numerous electric, gas and telephone rate cases at both federal and state levels. Dr. Brigham spends his spare time on the golf course, enjoying time with his family and dogs and tackling outdoor adventure activities, such as biking through Alaska.

Joel F. Houston

Dr. Joel F. Houston is the Eugene F. Brigham Professor of Finance at the University of Florida. He received his M.A. and Ph.D. from the Wharton School at the University of Pennsylvania and his undergraduate degree from Franklin and Marshall College. Prior to his appointment at the University of Florida, Dr. Houston was an economist at the Federal Reserve Bank of Philadelphia. Dr. Houston's research is primarily in the areas of corporate finance and financial institutions. His work has been published in top journals including The Journal of Finance, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Accounting Research and Financial Management. Dr. Houston also currently serves as an associate editor for the Journal of Financial Services Research and the Journal of Financial Economic Policy. Since arriving at the University of Florida in 1987, Dr. Houston has received more than 25 teaching awards and has been actively involved in both undergraduate and graduate education. In addition to co-authoring leading textbooks in financial management, Dr. Houston has participated in management education programs for the PURC/World Bank Program, Southern Company, Exelon Corporation and Volume Services America. He enjoys playing golf and spending time with his wife (Sherry), son (Chris), daughter (Meredith) and grandson (Teddy). He is an avid sports fan who follows the Florida Gators as well as the Pittsburgh Steelers, Pirates and Penguins.

Digital Solutions

Table of Contents

Part I: INTRODUCTION TO FINANCIAL MANAGEMENT.
1. An Overview of Financial Management.
2. Financial Markets and Institutions.
Part II: FUNDAMENTAL CONCEPTS IN FINANCIAL MANAGEMENT.
3. Financial Statements, Cash Flow, and Taxes.
4. Analysis of Financial Statements.
Web Appendix 4A: Common Size and Percent Change Analyses.
5. Time Value of Money.
Web Appendix 5A: Continuous Compounding and Discounting.
Web Appendix 5B: Growing Annuities.
Part III: FINANCIAL ASSETS.
6. Interest Rates.
7. Bonds and Their Valuation.
Web Appendix 7A: Zero Coupon Bonds.
Web Appendix 7B: Bond Risk and Duration.
Web Appendix 7C: Bankruptcy and Reorganization.
8. Risk and Rates of Return.
Web Appendix 8A: Calculating Beta Coefficients.
9. Stocks and Their Valuation.
Appendix 9A: Stock Market Equilibrium.
Part IV: INVESTING IN LONG-TERM ASSETS: CAPITAL BUDGETING.
10. The Cost of Capital.
Web Appendix 10A: The Cost of New Common Stock and WACC.
11. The Basics of Capital Budgeting.
12. Cash Flow Estimation and Risk Analysis.
Appendix 12A: Tax Depreciation.
Web Appendix 12B: Refunding Operations.
Web Appendix 12C: Using the CAPM to Estimate the Risk-Adjusted Cost of Capital.
Web Appendix 12D: Techniques for Measuring Beta Risk.
Web Appendix 12E: Comparing Mutually Exclusive Projects with Unequal Lives.
Web Appendix 12F: Real Options: Investment Timing, Growth, and Flexibility.
Part V: CAPITAL STRUCTURE AND DIVIDEND POLICY.
13. Capital Structure and Leverage.
Web Appendix 13A: Degree of Leverage.
14. Distributions to Shareholders: Dividends and Share Repurchases.
Web Appendix 14A: An Example: The Residual Dividend Model.
Part VI: WORKING CAPITAL MANAGEMENT, FORECASTING, AND MULTINATIONAL FINANCIAL MANAGEMENT.
15. Working Capital Management.
Web Appendix 15A: Inventory Management.
Web Appendix 15B: Short-Term Loans and Bank Financing.
16. Financial Planning and Forecasting.
Web Appendix 16A: Forecasting Financial Requirements When Financial Ratios Change.
17. Multinational Financial Management.
Appendix A: Solutions to Self-Test Questions and Problems.
Appendix B: Answers to Selected End-of-Chapter Problems.
Appendix C: Selected Equations and Tables.

New to this edition

  • Completely revised and up to date, FUNDAMENTALS OF FINANCIAL MANAGEMENT: CONCISE EDITION, 9e includes the latest research, trends, and developments from the field. Updated real-world examples reflect current situations affecting today's companies. In addition, approximately 40 percent of the book's problems have been revised.
  • Providing even more flexibility and options for hands-on applications, Thomson One problems have been repurposed to be used with Internet resources. New problems have been added for Chapters 6, 7, and 17.
  • The innovative new Adaptive Test Prep app helps student maximize their study time. Students decide how many quiz questions they want to review, and the app generates a preparatory quiz -- using questions similar to exam questions. The app provides students with feedback on every question, and students can continue practicing until they feel confident about taking the exam.

Features

  • MindTap's PREPARING FOR FINANCE tutorials ensure that students confront and overcome deficiencies in prerequisite math, accounting, economics, and statistics. A tutorial on using financial calculators is also included.
  • QUICK QUESTIONS: Located in key chapters, these questions are set aside in boxes within the text. After posing the question, the exercise walks students step-by-step through the process of finding its solution. The authors designed these questions to parallel the activity in a classroom setting, in which students go through an example to make concepts more concrete.
  • INSIGHTFUL REAL-WORLD EXAMPLES: To help students bridge the gap between concept and application, the authors highlight many real-life examples throughout the text, including a broad discussion of the role of hedge funds and private equity of major firms, a detailed breakdown of the cash conversion cycle components for several leading companies, and up-to-date coverage of corporate bond ratings, yields, and dividend payouts for a broad range of companies.
  • CURRENT EXCEL MODELS: Giving students hands-on experience using Excel® to problem-solve, up-to-date spreadsheet models parallel the discussion of each topic and also incorporate in-text graphics to quickly show students how many of the problems can be solved using Excel®.
  • FOCUSED SELF-TEST PROBLEMS ENSURE STUDENT UNDERSTANDING THROUGHOUT THE CHAPTER. Strategically placed Self-test Problems appear immediately after each major section of the chapter, enabling students to test their comprehension as they work through the text, instead of waiting until the conclusion of the chapter.
  • AUTHOR-WRITTEN SUPPLEMENT SUPPORT PROVIDES CONSISTENCY THROUGHOUT COMPREHENSIVE PACKAGE. Instructors and students will find the same level of accuracy and precision crafting that has made this text a leader throughout all of this edition's supplements. Prepared by the text authors to ensure consistency, this seamless, integrated package includes a comprehensive Instructor's Manual and sizeable Test Bank, as well as numerous digital resources.
  • UNIQUE BALANCE OF THEORY AND PRACTICE KEEPS TODAY'S STUDENTS ENGAGED AND FOCUSED. The hallmark strength of this leading finance text is that it clearly introduces important financial theories using a practically focused presentation. Students immediately see the impact and importance of financial theories and trends at work through proven learning features, a variety of current real financial and business world examples, practical problem sets, and integrated mini-cases.
  • INTEGRATED SPREADSHEET MODELS HELP STUDENTS REFINE FINANCIALPROBLEM-SOLVING TECHNIQUES. More than just Excel® templates, these integrated Spreadsheet Models accompany all but the first chapter and guide students in developing effective techniques for financial problem solving. Spreadsheet Models serve as useful tutorials that demonstrate how to maximize Excel® as a powerful finance tool.
  • Available with the ninth edition, MindTap® -- Cengage Learning's fully online, highly personalized learning experience -- combines readings, multimedia, activities, and assessments into a singular Learning Path, which now includes an Interactive Chapter Reading, Problem Demonstrations, BluePrint Problems, and the Online Homework Assignment. Instructors can personalize the Learning Path for their students by customizing the robust suite of Brigham/Houston 9e resources and adding their own content via apps that integrate into the MindTap® framework seamlessly with Learning Management Systems.

About the author(s)

Eugene F. Brigham

Dr. Eugene F. Brigham is graduate research professor emeritus at the University of Florida, where he has taught since 1971. He received his M.B.A. and Ph.D. from the University of California-Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin and the University of California-Los Angeles. A former president of the Financial Management Association, he has written many journal articles on the cost of capital, capital structure and other aspects of financial management. He has authored or co-authored 10 textbooks on managerial finance and managerial economics that are used at more than 1,000 universities in the United States and have been translated into 11 languages worldwide. In addition to his academic writing, Dr. Brigham continues to teach, consult and complete research. He has served as a consultant to many corporations and government agencies, including the Federal Reserve Board, the Federal Home Loan Bank Board, the U.S. Office of Telecommunications Policy and the RAND Corp. He has also testified as an expert witness in numerous electric, gas and telephone rate cases at both federal and state levels. Dr. Brigham spends his spare time on the golf course, enjoying time with his family and dogs and tackling outdoor adventure activities, such as biking through Alaska.

Joel F. Houston

Dr. Joel F. Houston is the Eugene F. Brigham Professor of Finance at the University of Florida. He received his M.A. and Ph.D. from the Wharton School at the University of Pennsylvania and his undergraduate degree from Franklin and Marshall College. Prior to his appointment at the University of Florida, Dr. Houston was an economist at the Federal Reserve Bank of Philadelphia. Dr. Houston's research is primarily in the areas of corporate finance and financial institutions. His work has been published in top journals including The Journal of Finance, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Accounting Research and Financial Management. Dr. Houston also currently serves as an associate editor for the Journal of Financial Services Research and the Journal of Financial Economic Policy. Since arriving at the University of Florida in 1987, Dr. Houston has received more than 25 teaching awards and has been actively involved in both undergraduate and graduate education. In addition to co-authoring leading textbooks in financial management, Dr. Houston has participated in management education programs for the PURC/World Bank Program, Southern Company, Exelon Corporation and Volume Services America. He enjoys playing golf and spending time with his wife (Sherry), son (Chris), daughter (Meredith) and grandson (Teddy). He is an avid sports fan who follows the Florida Gators as well as the Pittsburgh Steelers, Pirates and Penguins.

Related Titles

Fundamentals of Financial Management Concise 9e Solutions

Source: https://www.cengage.co.uk/books/9781305635937