Foundations of Finance, Global Edition

About our authors Arthur J. Keown is the Department Head and R. B. Pamplin Professor of Finance at Virginia Polytechnic Institute and State University. He received his bachelor's degree from Ohio Wesleyan University, his MBA from the University of Michigan, and his doctorate from Indiana University. An award-winning teacher, he is a member of the Academy of Teaching Excellence; has received 5 Certificates of Teaching Excellence at Virginia Tech, the W. E. Wine Award for Teaching Excellence, and the Alumni Teaching Excellence Award; and in 1999 received the Outstanding Faculty Award from the State of Virginia. Professor Keown is widely published in academic journals. His work has appeared in the Journal of Finance, the Journal of Financial Economics, the Journal of Financial and Quantitative Analysis, the Journal of Financial Research, the Journal of Banking and Finance, Financial Management, the Journal of Portfolio Management, and many others. In addition to Foundations of Finance, 2 other of his books are widely used in college finance classes all over the country: Basic Financial Management and Personal Finance: Turning Money into Wealth. Professor Keown is a Fellow of the Decision Sciences Institute, was a member of the Board of Directors of the Financial Management Association, and is the head of the finance department at Virginia Tech. In addition, he served as the co-editor of the Journal of Financial Research for 6½ years and as the co-editor of the Financial Management Association's Survey and Synthesis series for 6 years. He lives with his wife in Blacksburg, Virginia, where he collects original art from Mad Magazine.John D. Martin holds the Carr P. Collins Chair in Finance in the Hankamer School of Business at Baylor University, where he teaches in the Baylor EMBA programs and has 3 times been selected as the outstanding teacher. John joined the Baylor faculty in 1998 after spending 17 years on the faculty of the University of Texas at Austin. Over his career he has published over 50 articles in the leading finance journals, including papers in the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Journal of Monetary Economics, and Management Science. His recent research has spanned issues related to the economics of unconventional energy sources, the hidden cost of venture capital, and the valuation of firms filing Chapter 11. He is also co-author of several books, including Financial Management: Principles and Practice (13th Edition, Prentice Hall), Foundations of Finance (9th Edition, Prentice Hall), Theory of Finance (Dryden Press), Financial Analysis (3rd Edition, McGraw Hill), Valuation: The Art & Science of Corporate Investment Decisions (2nd Edition, Prentice Hall), and Value Based Management with Social Responsibility (2nd Edition, Oxford University Press).William Petty, PhD, Baylor University, is Professor of Finance and W. W. Caruth Chair of Entrepreneurship. Dr. Petty teaches entrepreneurial finance, both at the undergraduate and graduate levels. He is a University Master Teacher. In 2008, the Acton Foundation for Entrepreneurship Excellence selected him as the National Entrepreneurship Teacher of the Year. His research interests include the financing of entrepreneurial firms and shareholder value-based management. He has served as the co-editor for the Journal of Financial Research and the editor of the Journal of Entrepreneurial Finance. He has published articles in various academic and professional journals including the Journal of Financial and Quantitative Analysis, Financial Management, Journal of Portfolio Management, Journal of Applied Corporate Finance, and Accounting Review. Dr. Petty is co-author of a leading textbook in small business and entrepreneurship, Small Business Management: Launching and Growing Entrepreneurial Ventures. He also co-authored Value-Based Management: Corporate America's Response to the Shareholder Revolution (2010). He serves on the Board of Directors of a publicly traded oil and gas firm. Finally, he serves on the Board of the Baylor Angel Network, a network of private investors who provide capital to startups and early-stage companies.

• PART I: THE SCOPE AND ENVIRONMENT OF FINANCIAL MANAGEMENT An Introduction to the Foundations of Financial ManagementThe Financial Markets and Interest RatesUnderstanding Financial Statements and Cash FlowsEvaluating a Firm's Financial PerformancePART II: THE VALUATION OF FINANCIAL ASSETS The Time Value of MoneyThe Meaning and Measurement of Risk and ReturnThe Valuation and Characteristics of BondsThe Valuation and Characteristics of StockThe Cost of CapitalPART III: INVESTMENT IN LONG-TERM ASSETS Capital-Budgeting Techniques and PracticeCash Flows and Other Topics in Capital BudgetingPART IV: CAPITAL STRUCTURE AND DIVIDEND POLICY Determining the Financing MixDividend Policy and Internal FinancingPART V: WORKING-CAPITAL MANAGEMENT AND INTERNATIONAL BUSINESS FINANCE Short-Term Financial PlanningWorking-Capital ManagementInternational Business FinanceCash, Receivables, and Inventory Management