Authors: Arthur J.Keown, John D.Martin, J.William Petty

ISBN: 9781292155135

Published: 2017

Publisher: Pearson 


Foundations of Finance: The Logic and Practice of Financial Management (Global Edition), 9th edition a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States.

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
  • Five Principles, presented at the beginning of the book, provide students with a strong foundation of the key concepts in finance so they are able to apply such principles outside of class to real-life situations.
    • Principle 1: Cash Flow Is What Matters
    • Principle 2: Money Has a Time Value
    • Principle 3: Risk Requires a Reward
    • Principle 4: Market Prices are Generally Right
    • Principle 5: Conflicts of Interest Can Cause Agency Problems
  • A Focus on Valuation. Although many professors and instructors make valuation the central theme of their course, students often lose sight of this focus when reading their text. The authors have revised this edition to reinforce this focus in the content and organization of the text:
    • Five finance principles provide the foundation for the valuation of any investment.
    • New topics are introduced in the context of “what is the value proposition?” and “how is the value of the enterprise affected?”


Foundations of Finance: The Logic and Practice of Financial Management