We have found that the phrase "so much to do, so little time" accurately describes an introductory finance course. For this reason, we designed Essentials of Corporate Finance to be as flexible and modular as possible. There are a total of nine parts, and, in broad terms, the instructor is free to decide the particular sequence. Further, within each part, the first chapter generally contains an overview and survey. Thus, when time is limited, subsequent chapters can be omitted. Finally, the sections placed early in each chapter are generally the most important, and later sections frequently can be omitted without loss of continuity. For these reasons, the instructor has great control over the topics covered, the sequence in which they are covered, and the depth of coverage.

Part One of the text contains Chapter 1, which considers the goal of the corporation,
the corporate form of organization, the agency problem, and, briefly, career paths.

Part Two includes two chapters on financial statements, Chapter 2 succinctly discusses cash flow versus accounting income, market value versus book value, taxes, and basic financial statements. In keeping with our goal of providing only essential topics in a streamlined approach, we merged two chapters from the first edition, on working with financial statements and long-term financial planning and growth, to form the current Chapter 3.

Part Three presents two chapters on valuation, Chapters 4 and 5 begin by covering the basics of net present value before moving into the next step on discounted cash flow valuation. The bond and stock valuation material is split into two chapters in this edition in Part Four. Part Five covers capital budgeting.

Part Six contains two chapters on risk and return. The first one, on market history, is
designed to give students a feel for typical rates of return on risky assets. The second one
discusses the expected return/risk tradeoff, and it develops the security market line in a highly intuitive way that bypasses much of the usual portfolio theory and statistics.

Part Seven contains four chapters on long-term financing. Chapter 12 covers cost of capital, Chapter l3 covers leverage and capital structure, and Chapter l4 covers dividends and dividend policy. Based on reviewer feedback, we moved our raising capital chapter, Chapter 15, to the end of this part. Venture capital, the role of investment banks, and the costs of going public are emphasized. Because this chapter contains a good deal of descriptive material, it can be assigned as outside reading if time is tight.

Part Eight contains two chapters on short-term financial management. The first is an introduction to the subject that emphasizes the cash cycle and the need for short-term planning. The second chapter provides greater detail, covering essentials of cash, inventory, and receivables management. The second chapter can be omitted as time constraints dictate.

Finally, Part Nine has a single chapter on international financial management. Because of the importance of this subject, we felt it should be included. We designed the chapter to be a stand-alone treatment so that it can be covered at almost any point in the term, not necessarily at the very end. For example, it would come very naturally after discussing risk and return or after covering long-term financing.

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Practice This! Boxes (see pages 60, 191, and 274). Most chapters include at least one Practice This! box. which takes a particular chapter issue and shows how it is being used right now in everyday financia1 decision making.

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Industry Insight Boxes (see pages 72, 241, and 337). Hershey Chocolate North America is highlighted throughout the text in a unique series of boxes that apply key topics to an actual company setting. Written by Samuel C. Weaver, Director, Financia1 Planning and Analysis, of Hershey Chocolate North America, this series gives students the opportunity to explore the application of corporate finance topics, such as capital budgeting, stock repurchase and dividend policy, through a financial planner's eyes.

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Calculator Hints and Spreadsheet Strategies (see pages 94, 120, and 152). Realizing that there is more than one way to solve problems in corporate finance, we introduce two new sections that will not only encourage students to learn different problem-solving methods, but that will also help them to learn or brush up on their financial calculator and ExcelÔ spreadsheet skills. Calculator Hints is a self-contained section in various chapters that first introduces students to calculator basics and then illustrates how to solve problems with the calculator. Appendix D goes into more detail by solving the problems with two specific calculators. The unique Spreadsheet Strategies feature is also in self-contained sections and shows students how to set up spreadsheets to solve problems -- a vital part of every business student's education.

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FAST Problems (see pages 105, 200, and 283). Almost every chapter ends with a list of problems that are linked to the Financial Analysis Spreadsheet Templates (FAST) software product packaged with every book purchased from Irwin/McGraw-Hill. These ExcelÔ templates are a valuable extension of the Spreadsheet Strategies feature.

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