Financial Management as a discipline is a fusion of financial theory (with its origins in economics) and financial analysis (which is linked to accounting). This text explores the underlying theories of corporate finance and examines the application of these theories in the Southern African context. Although the title is intended primarily for students studying towards an accounting qualification, it is also suitable for practitioners, and those undertaking executive courses in financial management. In this edition new sections have been added on the valuation of bonds and debentures, the free cash flow method of valuation, strategic analysis, Economic Value Added (EVA), due diligence in mergers and acquisitions, and multinational capital budgeting. There is increased focus on applications such as capital budgeting and foreign exchange management by BHP Billiton and securitisation by Edcon. Changes in taxation such as capital allowances and the effect of capital gains tax have been included.