Financial Management is an introductory text that students would find interesting and easy to understand. Our goal with this second edition is to produce a book and ancillary package that would set a new standard for finance textbooks.

Important changes have taken place in the financial environment since the last edition. New technology and increased globalization continue to transform practices and markets. Continued improvements in communications and transportation have made it easier for businesses to operate on a worldwide basis, a company can be headquartered in New York, develop products in India, manufacture them in China, and sell them anywhere in the world. This has led to major changes in the labor markets, especially to an increase in outsourcing, which has resulted in generally lower consumer prices; but it has caused job losses for some U.S. workers ad gains for others.

There have also been dramatic rises and falls in the stock market, and interest rated have remained low even as energy prices continue to rise. Corporate scandals have led to important changes in the laws governing corporate management and financial reporting, as well as to equally important changes in managerial compensation. These issues are discussed in this edition of Essentials, where we analyze them from financial and ethical perspectives.

Part 1 Introduction to Financial Management
Part 2 Fundamental Concepts in financial Management and financial Forecasting
Part 3 Financial Assets and Time Value of Money
Part 4 Investing in Long-Term Assets: Capital Budgeting
Part 5 Capital Structure, Dividend Policy, and Working Capital Management
Part 6 Special Topics in Financial Management

- Appendixes