Description
Bridging Theory and Practice
To be successful, students need to master the core concepts and learn to identify and solve problems that today’s practitioners face.
◗ The Valuation Principle is presented as the foundation of all financial decision making: The central idea is that a firm should take projects or make investments that increase the value of the firm. The tools of finance determine the impact of a project or investment on the firm’s value by comparing the costs and benefits in equivalent terms. The Valuation Principle is first introduced in Chapter 3, revisited in the part openers, and integrated throughout the text.
◗ Guided Problem Solutions (GPS) are Examples that accompany every important concept using a consistent problem-solving methodology that breaks the solution process into three steps: Plan, Execute, and Evaluate. This approach aids student comprehension, enhances their ability to model the solution process when tackling problems on their own, and demonstrates the Importance of interpreting the mathematical solution.
◗ Personal Finance GPS Examples showcase
the use of financial analysis in everyday life by setting problems in scenarios, such as purchasing a new car or house and saving for retirement.
◗ Common Mistake boxes alert students to frequently made mistakes stemming from misunderstanding of core concepts and calculations— in the classroom and in the field.