Finance is an exciting, challenging, and ever-changing discipline. New technology and increased globalization are dramatically transforming financial practices and markets. Over the past few years, we have witnessed a dramatic rise and equally dramatic fall in the stock market, along with the collapses of such giants as Enron, WorldCom, and Global Crossing.

Investors, regulators, and lawmakers are currently scrutinizing the questionable practices of many leading accounting firms, investment banks, and market analysis. Many of these issues are discussed in this tenth edition of Fundamentals, and we explain these events from both a financial and ethical perspective. As the excesses of recent year unwind, it is more important than ever for students to have a solid understanding of basic financial principles.

In developing and improving Fundamentals, we tried to convey the excitement and ever-changing nature of finance, and to make students realize its importance and relevance. More often than not, students discover that finance is more interesting and relevant than they had anticipated. Nevertheless, finance remains a challenging subject for many students, and we kept this in mind as we developed   the text and its subporting materials. Without sacrificing rigor, we tried to explain each topic as clearly and completely as possible.

Chapter 1 An Overview of Financial Management
Chapter 2 Financial Statements, Cash Flow, and Taxes
Chapter 3 Analysis of Financial Statements
Chapter 4 The Financial Environment: Matkets, Institions, and
Interest Rates
Chapter 5 Risk and Rates of Return
Chapter 6 Time Value of Money
Chapter 7 Bonds and Their Valuation
Chapter 8 Stocks and Their Valuation
Chapter 9 The Cost of Capital
Chapter 10 The Basics of Capital Budheting
etc.