About the Book Comprehensive Coverage of Financial Concepts UPDATED! Chapter-by-chapter updates have been made in response to the continued development of financial thought, reviewer comments, and recent economic crisis, including: Revised and updated introduction and discussion of the “Five Principles” in Chapter 1 Revised coverage of the term structure of interest rates to address very low rates at present; simplified, more intuitive discussion of interest rate determinants; and added coverage of the term structure of interest rates in Chapter 2 Use of the Coca-Cola company to discuss financial statements, expanded coverage of balance sheets, more intuitive presentation of cash flows, and new explanation of fixed and variable costs as part of presenting income statements in Chapter 3 Chapter 4 compares Coca-Cola to PepsiCo to illustrate comparative evaluation of a firm’s financial performance; provides a new Finance at Work and revised presentation of evaluating a company’s liquidity Chapter 5 has been revised to appeal to students regardless of numerical skills, including new section on “Making Interest Rates Comparable” and new questions and problems Updated examples and information on rates of return in Chapter 6 New examples of actual firms in Chapter 7 Chapter 8 includes more current explanation of options for getting stock quotes from the Wall Street Journal Chapter 9 includes five new lecture captures and eight revised problems Chapter 10 includes an extensively revised introduction that discusses Disney’s decision to build the Disney Shanghai Resort and a new section with additional discussion of the modified internal rate of return Chapter 11 includes a revised introduction examining the difficulties Toyota faced in estimating future cash flows when it introduced the Prius, along with a new Finance at Work box and problem set Chapter 12 includes a revised problem set Chapter 13 includes an updated discussion of the tax code for personal tax treatment of dividends and capital gains, and a new lecture capture Chapters 14 and 15 contain new problem exercises Chapter 16 has been revised extensively to reflect changes in exchange rates and global financial markets, and a new section titled “What a Change in the Exchange Rate Means for Business” deals with the implications of exchange rate changes Check Understanding Brief (10 to 15 minute) lecture videos contain direct “tutoring” from the authors that will help students with primary examples in the text. Available in the eText, students can replay these videos as many times as necessary. Also Available with MyFinanceLabTM MyFinanceLab not included. Students, if MyFinanceLab is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyFinanceLab should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information. MyFinanceLab is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts. Enhanced eText. Available within the online course materials and offline via an iPad app, the enhanced eText allows instructors and students to highlight, bookmark, take notes, and share with one another. 52 Lecture Capture