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Teaching Students the Logic of Finance: The seventh edition of Financial Management provides students with an overview of financial management suited to a first course in finance.The focus of the text is on the big picture, providing an introduction to financial decision making grounded in current financial theory and the current state of world economic conditions.
The authors believe that students learn better when they learn the intuition behind the complex concepts. Financial Management shows students the reasoning behind financial decisions and connects all of the topics in the book to the Five Key Principles of Finance.
- Principle 1: Money Has A Time Value
Principle 2: There Is a Risk-Return Trade-off
Principle 3: Cash Flows Are the Source of Value
Principle 4: Market Prices Reflect Information
Principle 5: Individuals Respond to Incentives
