This book is written for undergraduates of business courses in which Financial Management is one of the compulsory subjects. In this edition, each chapter has been carefully reviewed and thoroughly revised to reflect the most relevant data and critical issues in financial management, such as risk, return and portfolio management, banking regulations and Basel guidelines. Through additional Further Reading and Further Comments in each chapter, students are taught how to integrate theory with practice in evaluating financial decisions. This edition also includes many new worked out examples to support student problem solving. Additional discussion and assignment questions have also been added to enable the students to master the theory and art of financial management.