Book Title: Principles of Managerial Finance 14th edition
Author(s): Lawrence J. Gitman
Publisher: Prentice Hall, Year: 2009
Category: BBA & MBA
Size: 53.83 MB
Principles of Managerial Finance 14th edition by Lawrence J. Gitman is a comprehensive guide to the field of finance and provides an overview of the key concepts and techniques used in the management of financial resources. Principles of Managerial Finance 14th edition covers a wide range of topics including financial statement analysis, investment decisions, capital budgeting, risk and return, and working capital management.
One of the key principles discussed in the book is the concept of financial statement analysis. This involves the interpretation and evaluation of a company’s financial statements, including the balance sheet, income statement, and cash flow statement. Gitman emphasizes the importance of understanding financial statements in order to make informed decisions about the company’s financial health and future performance. He also covers the various ratios and metrics used to analyze financial statements, such as profitability ratios, liquidity ratios, and solvency ratios.
Another important principle covered in the book is investment decisions. Gitman explains the process of evaluating potential investment opportunities and making informed decisions about which investments to pursue. This includes an overview of the capital budgeting process, which involves evaluating the potential cash flows of an investment and determining its net present value (NPV) and internal rate of return (IRR). Gitman also covers the concept of risk and return, which is the idea that investments with higher risk also have the potential for higher returns. He explains how to evaluate the risk of different investment opportunities and how to make trade-offs between risk and return.
Principles of Managerial Finance 14th edition also covers the concepts of long-term financial planning and decision-making, including the determination of a company’s cost of capital, which is the cost of the funds that the company must use to finance its investments. Gitman explains how to calculate the cost of capital and how it can be used to make investment decisions. He also covers the topic of capital structure, which refers to the mix of debt and equity that a company uses to finance its operations.
Another important aspect of the book is working capital management, which involves the management of a company’s short-term financial resources, including cash, accounts receivable, and inventory. Gitman covers the importance of effective working capital management in maintaining the financial health of a company and maximizing its value. He also covers the various techniques used to manage working capital, such as managing cash flow, controlling accounts receivable, and optimizing inventory levels.
In addition to these core principles, the 14th edition of “Principles of Managerial Finance” also covers several important topics in corporate finance, including mergers and acquisitions, divestitures, and leveraged buyouts. Gitman provides an overview of these complex financial transactions and explains the key considerations involved in making informed decisions about these types of investments.
Overall, Principles of Managerial Finance 14th edition provides a comprehensive and accessible guide to the principles of finance. It covers a wide range of topics and is written in a clear, concise, and engaging style. This textbook is ideal for students and professionals who are new to the field of finance, as well as those who are looking to expand their knowledge and understanding of financial concepts and techniques.
Whether you are studying finance in a classroom setting or working in a finance-related field, Principles of Managerial Finance 14th edition is an essential resource that will provide you with a solid foundation in the principles of finance and help you make informed decisions about financial resources. With its focus on real-world applications and practical examples, Principles of Managerial Finance 14th edition is a valuable tool for anyone looking to succeed in the world of finance.