Includes bibliographical references and index.

Table of contents: Part 1 The business finance environment: introduction; a framework for financial decision making; financial accounting statements and their interpretation. Part 2 Investment decisions: investment appraisal methods; practical aspects of investment appraisal; risk in investment appraisal; the pricing of securities and its relevance to investment decisions. Part 3 Financing decisions: sources of long-term finance; the secondary capital market (the Stock Exchange) and its efficiency; cost of capital estimations and the discount rate; gearing, the cost of capital and shareholders' wealth; the dividend decision. Part 4 Integrated decisions: management of working capital; corporate restructuring (including takeovers and divestments); small firms. Appendices: present value table; annuity table; suggested answers to review questions; suggested answers to selected problem questions.

Business Finance is an accessible introduction to decision making in firms - what investments a company should make and how they should be financed. Taking a user's perspective, this highly successful textbook blends the theoretical, analytical and practical aspects of the subject, providing an up-to-date introduction to finance and investment. The book sets out the theories surrounding financial decision making and relates these theories to what happens in practice, in the real world. Where theory and practice diverge, the book attempts to reconcile and explain the differences.Now thoroughly updated in its 5th edition, Business Finance continues to be a readable, student-friendly text.Key Features:Good theoretical underpinning in an easily accessible form for an introductory finance courseExcellent blend of theory and practiceReview Questions at the end of each chapterComputational problems are provided and graded basic, intermediate and advancedAvoids the use of technical jargonExtensive supplements package is provided: Instructor's Manual, OHTs, Test bank, Companion Web SiteNew to this Edition:New chapter on International Business FinanceEmpirical research findings have been bro