
- English
- ePUB (mobile friendly)
- Available on iOS & Android
About this book
Welcome to the definitive guide to mastering modern financial management.
This book, Financial Management: Second Edition, offers a complete journey through the world of finance. It starts with the very basics, exploring the purpose of a modern company. You will learn about the core decisions financial managers make every day. The book then teaches you the language of finance. You will understand how to read financial statements and analyze a company's health using ratios. It introduces the time value of money, a core concept for any valuation. You will learn to calculate risk and the return investors expect. The text covers essential pricing models like CAPM and the Fama-French Three-Factor Model. It then shows you how to calculate a firm's overall cost of capital, or WACC. From there, you will master the art of capital budgeting and valuing an entire enterprise using DCF analysis. You will also learn how to value companies by comparing them to others. The book delves into strategic decisions like debt policy and how companies return cash to shareholders through dividends and buybacks. Finally, it explores advanced topics like mergers, acquisitions, and divestitures, explaining the strategy behind these complex deals.
What sets this book apart is its focus on building true financial intuition, not just memorizing formulas. While other texts present financial rules as rigid and unchanging, this second edition frames them as dynamic choices that depend on a company's competitive environment and strategic goals. It bridges theory and practice by integrating landmark research—from Modigliani-Miller to the work of Fama, French, and Carhart—with real-world applications. You'll see how the CFO's role has evolved into a strategic "Chief Value Officer" and learn practical tools used by professionals, like the "Football Field" chart for valuation. This book moves beyond isolated topics to provide a holistic framework, showing how decisions about capital structure, payout policy, and M&A are interconnected. It's designed for the aspiring financial leader who needs to translate complex data into a compelling case for value creation.
Disclaimer: The author of this publication is not affiliated with, nor has this publication been authorized, sponsored, or otherwise approved by any university or official testing organization. This is an independently produced guide under the principle of nominative fair use.
Frequently asked questions
- Essential is ideal for learners and professionals who enjoy exploring a wide range of subjects. Access the Essential Library with 800,000+ trusted titles and best-sellers across business, personal growth, and the humanities. Includes unlimited reading time and Standard Read Aloud voice.
- Complete: Perfect for advanced learners and researchers needing full, unrestricted access. Unlock 1.4M+ books across hundreds of subjects, including academic and specialized titles. The Complete Plan also includes advanced features like Premium Read Aloud and Research Assistant.
Please note we cannot support devices running on iOS 13 and Android 7 or earlier. Learn more about using the app.
Information
Table of contents
- Copyright
- PART I: THE BEDROCK OF FINANCIAL INQUIRY
- PART II: DECODING AND PRICING THE FIRM
- PART III: THE ARCHITECTURE OF VALUE CREATION
- PART IV: STRATEGIC FINANCIAL POLICY DECISIONS
- PART V: THE FRONTIERS OF FINANCIAL STRATEGY