This volume is designed to serve as an introduction to the study of Financial Management for different categories of readers, such as: students, professors, financial professionals, and managers. The author acknowledges that the realities and complexity of todays financial markets placed the present day finance manager in a situation where he is continuously required to update his knowledge, to take financial decisions in a competitive environment, and thoroughly understand the theories of corporate finance.
The book is structured in five chapters, starting with an introduction on the main elements and mechanisms of financial markets, and continues with two chapters dealing with the two paramount decisions that a company faces in todays business environment: the financing decision, which allocates least-cost combinations of capital resources and the investment decision, which maximizes net present value and shareholder wealth. The fourth chapter deals with the main Financial Statements and presents the balance sheet, the income statement, the Cash Flow Statement and also the with the account adjustments, also known as adjusting entries. The last chapter is a case study where previous concepts are shown in practice. Overall, emphasis is put on the managerial applications of financial analysis.
Throughout the book, concepts are explained with a number of illustrations and diagrams for clear understanding of subject matter.