Written for the MBA or undergraduate first course in finance, as well as follow-on courses, this textbook provides a clear, accessible, and thorough explanation of the principles of finance; how they connect to real-world practice and how they are used to solve problems. Structured around ten unifying principles representing the core tenets of the science, this book imparts basic financial concepts irrespective of the institutional framework, ensuring that students learn about finance in a way that is applicable both now and into the future. Pedagogical features include learning objectives and major takeaways, applications in the world of business, numerous worked examples, key equation boxes highlighting the most important financial equations, quick check questions with solutions, key finance terms with a detailed glossary, and more than 380 homework problems. Online resources include a solutions manual, detailed instructor manual to adapt the book to your course, lectures slides and an 800 question test bank for instructors

Part I. Principles and core concepts
Chapter 1. The ten principles of finance
Chapter 2. Basics of valuation: the time value of money
Chapter 3. Personal finance
Chapter 4. Principles of valuation
Chapter 5. Financial instruments and rates of return
Chapter 6. Principles of risk management
Chapter 7. Analyzing uncertainty: options
Chapter 8. Financial statements: analyzing and forecasting
Part II. Corporate finance
Chapter 9. Company valuation
Chapter 10. Capital budgeting
Chapter 11. Agency costs and governance
Chapter 12. Payout policy
Chapter 13. Capital structure
Chapter 14. A unified approach to the valuation of corporate assets and capital structure
Chapter 15. Financing over a firm's life
Part III. Asset pricing and financial markets
Chapter 16. The term structure of interest rates
Chapter 17. Portfolio theory
Chapter 18. Capital market equilibrium
Chapter 19. Derivatives
Chapter 20. The financial system and its functions
Answers to quick check questions
Glossary
Bibliography
Index