1. Now that it’s been published, what pleases you most about the Fundamentals of Finance?
That it is much improved and up-to-date.
2. It’s been made to support a Massey College of Business course, Fundamentals of Finance. Why is it therefore essential reading?
The book gives students insights into finance from a New Zealand perspective. Our experience shows that students appreciate Kiwi examples, terminology and background.
3. It’s the fourth edition of this book. What is new in this one?
We have extensively revised the risk and personal financial planning chapters. The financial tools section now explains time value of money applications using spreadsheet problems; the financial markets and institutions chapters have been significantly updated; and risk and return concepts have been expanded.
4. What do you think is particularly helpful to readers about it?
It is extremely readable, providing students with a concise introduction to the world of finance and shows them how they can manage personal and/or corporate funds.
5. Would non-students also find it useful?
Absolutely! For example, everyone can benefit from knowledge of how to purchase a house, finance the start-up of a company and fund their retirement.
6. Do you find that students arrive at university with well-developed financial knowledge?
Unfortunately, many have insufficient financial knowledge.
7. You all, clearly, find the financial sector interesting and important. Why?
It is so relevant to everyday life. Jenny was working in sharebroking in 1986 when the Fisher & Paykel-sponsored New Zealand yacht won an America’s Cup race in Perth; the company’s share price rose, and if a race was lost the share price fell. She also saw at first hand the devastating effect on investors of a sharemarket crash. Carolyn’s experience working as an accountant in the retail sector exposed her to the disastrous effects of financial mismanagement within the corporate sector; this has provided plenty of humorous anecdotes as lecture examples of finance follies. Andrea became interested in investments while teaching maths at a secondary school and came to Massey University to learn more about them.
8. How did you all work on this book together?
Pretty well, as we are still all talking! Our skills are very complimentary; Andrea in financial maths and markets, Jenny for investments and personal financial planning, and Carolyn in financial management.
9. How did you all find the time given that you are also teaching?
It is something we all feel passionately about, so we just made the time.
10. What are you all reading at the moment?
Jenny is reading Charles Dickens’ Great Expectations, Carolyn Let’s Pretend this Never Happened by Jenny Lawson, Andrea Penric’s Demon by L. McMaster Bujold.