Handbook of Managerial Finance and Quantitative Methods (Second Global Edition)
A comprehensive, classroom-ready guide to corporate and managerial finance, built for students and early-career professionals who need both the theory and the calculations that drive real financial decisions.
The book moves systematically from foundational concepts to advanced valuation and risk techniques across six sections:
Fundamentals of Financial Management - core concepts and terminology, business organization types, the agency problem, financial institutions and markets, the roles of a financial manager, and an introduction to sustainability in finance.Financial Statements - how financial information is disclosed, how to read the balance sheet and income statement, and the concepts of Market Value Added (MVA) and Economic Value Added (EVA).Financial Statement Analysis - a full toolkit of financial ratios (liquidity, leverage, activity, profitability, and market value), the DuPont equation, benchmarking, and trend analysis.Cost of Capital and Project Valuation - calculating the Weighted Average Cost of Capital (WACC), the Capital Asset Pricing Model (CAPM), beta estimation, and project-specific cost of capital.Capital Budgeting - the payback period method, Net Present Value (NPV), Internal Rate of Return (IRR), and a side-by-side comparison of NPV vs. IRR.Risk-Adjusted Capital Budgeting - risk-adjusted NPV, sensitivity analysis, simulation, and decision trees/real options for evaluating uncertain projects.Each chapter opens with a clear roadmap of its sections and closes with a chapter quiz, questions, and review, making the book easy to use for self-study or as a course companion.
Ideal for: undergraduate and MBA finance students, instructors looking for a structured course text, and working professionals who want a practical refresher on financial statement analysis, valuation, and capital budgeting.