Foundations of Finance (3rd Edition) [Hardcover]

Arthur J. Keown (Author), William J., II Petty (Author), John D. Martin (Author), David F. Scott (Author), William J. Petty (Author)

Book Description

ISBN-10: 0130423319 | ISBN-13: 978-0130423313 | Publication Date: March 7, 2001 | Edition: 3rd

This text provides an conceptual introduction to Finance. Keown, et al. provide the "Big Picture" Framework by focusing on the key principles approach. The Ten Axioms (key principles) offer a solid foundation on which to make sound financial decisions. Includes myPHLIP, WebCT and Blackboard. This text is briefer in chapter length and topics and has 4 less chapters than Basic Financial Management 8th ed.

Editorial Reviews

From the Publisher

The first to answer the need for a briefer finance text, this text consists of eighteen chapters covering the core topics of finance. Nine fundamental axioms of finance are introduced in the first chapter and revisited throughout the text to present an integrated view of finance and aid in problem solving. International finance, ethics, and practical applications are integrated, in-text problems correspond to Disclosure software, and the use of the financial calculator is incorporated. --This text refers to an alternate Hardcover edition.

From the Back Cover

This introduction to finance provides a conceptual understanding of the financial decision-making process — rather than just an introduction to the tools and techniques of finance — and focuses on the interrelationships among the topics covered. It explores the “big picture” and actual practice — i.e., financial decision making rooted in current financial theory and in the current state of world economic conditions. Chapter topics include financial markets and interest rates; understanding financial statements and cash flows; evaluating a firm's financial performance; financial forecasting, planning, and budgeting; the time value of money; valuation and characteristics of bonds and stocks; the meaning and measurement of risk and return; the cost of capital; dividend policy and internal financing; working-capital management; liquid asset management; and international business finance. For financial managers and others involved in corporate financial decisions — and for individuals interested in an education in finance, and the logic that drives it.

Product Details

• Hardcover: 585 pages
• Publisher: Prentice Hall; 3rd edition (March 7, 2001)
• Language: English
• ISBN-10: 0130423319
• ISBN-13: 978-0130423313
• Product Dimensions: 10.1 x 8.1 x 1.3 inches
• Shipping Weight: 3.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (20 customer reviews)
• Amazon Best Sellers Rank: #1,621,383 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

9 of 9 people found the following review helpful:

5.0 out of 5 stars Review of Foundations of Finance by Arthur J. Keown, December 19, 2000

By 

A Customer - See all my reviews

This review is from: Foundations of Finance: The Logic and Practice of Financial Management (Hardcover)

This is an excellent text. I've read it thoroughly. The material , as presented, assumes a robust course in accounting at the college level. This text is for a student desiring a complete rendition in basic finance topics and techniques. The text is replete with many examples and challenging problems of various complexities. The presentation is easy to read. The book is directed to students perhaps majoring in economics or finance. It is not a purely descriptive rendition of finance. A

considerable amount of so called "numbers crunching" is involved in reviewing this text. As such, the book serves the analytic student optimally. The text is devoid of the most complicated analytics inherent in "quantitatively oriented texts". There is a good appendix on the use of financial calculators ,as well as, present value calculations and other useful knowledge supplemental to the study of finance. This book would be most useful to students planning their careers as financial analysts, corporate planners or private entrepreneurs.

7 of 7 people found the following review helpful:

5.0 out of 5 stars Of all those Management books..., December 9, 2000

By 

"ojvo" (Manila) - See all my reviews

This review is from: Foundations of Finance : The Logic and Practice of Financial Management (Study Guide) (Paperback)

This was the best. A very clear and concise book for the serious student being introduced to the subject of Finance. Other books on the subject I've seen are very abstruse or just plain hard to read aside from weighing a ton. I had another book twice as thick to complement this one and my class abandoned it in short order. This book is comparatively light and chalk full of useful ideas and examples laid out in an organized and methodical manner. The generous use of charts and tables was executed well. Probably as simple as finance can possibly be put while still retaining the rigor and teaching the processes necessary for making financial computations.

Topics included are on basic valuation of various securities and projects using discounted cash flows, capital budget management, liquidity management, etc. I'm still learning from it after school. There simply wasn't enough time to fully cover everything in the book that I would have wanted. Now I'm ready to tackle more advanced corporate finance books/materials.

This is an introductory book for someone who may be interested in becoming a financial analyst but is obviously geared to the educational market for use in schools. The academic slant limits its applicability somewhat. Although it may give a stock market player who wants to start understanding the systematic process involved in the valuation of securities on a cash flow basis some insight for example, discussion on valuation by multiples like P/Es is virtually absent.

Nonetheless a great book.

3 of 3 people found the following review helpful:

4.0 out of 5 stars nice use of Web Works to attract readers' mindshare, March 4, 2008

By 

W Boudville (Terra, Sol 3) - See all my reviews
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This review is from: Foundations of Finance: The Logic and Practice of Finance Management (5th Edition) (Prentice Hall Finance Series) (Hardcover)

Assuming no prior knowledge of finance, the text affords you an extensive education in the subject. The authors span a wide gamut of ideas. As in discussing the time value of money. Nowadays, this involves extensive simulations via spreadsheets, and the book shows using Excel how you can gainfully tweak parameters to see differing results. The ready availability of spreadsheets and calculators is put to good use throughout the book. Burdensome calculations are delegated to those devices, leaving you to deal with the higher level issues.

There is a huge number of exercises in each chapter. Clearly aimed at the undergrad environment. There is also a "Web Works" section ending the chapters. Here, the authors refer you to numerous websites germane to the chapter. The book avoids a reference section in each chapter, where this would give a list of texts or journal papers. Instead, the Web Works takes its place. A good call. Today's readers are far more likely to actually utilise it and peruse the links. Simply because it is a lot easier to type in those URLs (yes, even manually type them into a browser) than it is to go to a library and hunt down a bunch of texts.