As with previous editions of this book, the tenth edition is designed primarily for use in a first subject in business finance or corporate finance. Nevertheless, the range of topics and the depth of coverage are sufficient to cater for the needs of students who undertake a sequence of two finance subjects in their course of study. Our main objectives are to introduce readers to finance theory and to the tools of financial decision making in the context of the Australian institutional environment.

Readers who are familiar with the ninth edition will notice several changes that go well beyond the updates associated with every edition of this book. These changes begin in Chapter 1, which has been extensively revised to focus on the structure of finance as a discipline. Chapter 5 contains a new section emphasising the link between project evaluation and real options analysis, while changes in Chapter 7 include a new section on implementation of the capital asset pricing model and a revised discussion of the Fama-French three-factor model. A new section on the long-term performance of initial public offerings is included in Chapter 9.

Sources of debt finance are now discussed in Chapter 10 which emphasises the features of the two main types of debt— intermediated debt and marketable securities. Payout policy is covered in Chapter 11 which has been rewritten to emphasise the full payout policy as advocated by De Angelo and De Angelo. Our explanation of the concept of market efficiency in Chapter 16 has been revised and the discussion of empirical evidence on market efficiency has been substantially updated. Chapter 19 which covers mergers, acquisitions and corporate restructuring includes new sections on schemes of arrangement and the use of break fees in takeover contests. Interested readers will find that the tenth edition contains many more changes than the few that are highlighted here.

Finally, the tenth edition is associated with an important change in the author team. Graham Peirson, who was one of the founding authors of the book when the first edition was published in 1972 and who has managed the author team for each subsequent edition, has retired from that role. Graham made an enormous contribution to the first nine editions of Business Finance and participated in the preparation of this edition by providing valuable comments on the draft of each chapter. The tenth edition of a book is an important milestone; that Business Finance has reached this milestone is due in large measure to Graham. We gratefully acknowledge his skills, leadership and the value of the advice that he has given to each of us.

ROB BROWN
STEVE EASTON
PETER HOWARD
SEAN PINDER
October 2008