Description
Managerial finance has changed greatly in recent years. Strong inflationary pressures have pushed interest rates to unprecedented heights, and the resulting high and volatile cost of capital has led to profound changes in corporate financial policies and practices. Academic researchers have made a number of significant theoretical advances. At the same time, business practitioners are making increasing use of financial theory, and feedback from the "real world" has led to modifications therein. To a large extent, these trends have dictated the revisions made in the seventh edition of Essentials of Managerial Finance.
This edition also differs significantly from the last one in terms of scope, style, and organization-we shortened, simplified, and clarified the text. Over the years, as the body of financial knowledge has expanded, we tended to add new materials to the book. This made it longer and more complex and, in some respects, less and less suitable for its intended market-the introductory undergraduate course. We felt this ourselves, and our feelings were confirmed by a Dryden Press survey of users of the sixth edition. In any event, reviewers of this seventh edition manuscript dubbed it the "back-to-basics" edition, and we would not dispute that title.
