Table of Contents

Part One: Value
Ch. 1 Introduction to Corporate Finance
Ch. 2 How to Calculate Present Values
Ch. 3 Valuing Bonds
Ch. 4 The Value of Common Stocks
Ch. 5 Net Present Value and Other Investment Criteria
Ch. 6 Making Investment Decisions with the Net Present Value Rule

Part Two: Risk
Ch. 7 Introduction to Risk and Return
Ch. 8 Portfolio Theory and the Capital Asset Pricing Model
Ch. 9 Risk and the Cost of Capital

Part Three: Best Practices in Capital Budgeting
Ch. 10 Project Analysis
Ch. 11 How to Ensure that Projects Truly Have Positive NPVs
Ch. 12 Agency Problems and Investment

Part Four: Financing Decisions and Market Efficiency
Ch. 13 Efficient Markets and Behavioral Finance
Ch. 14 An Overview of Corporate Financing
Ch. 15 How Corporations Issue Securities

Part Five: Payout Policy and Capital Structure
Ch. 16 Payout Policy
Ch. 17 Does Debt Policy Matter?
Ch. 18 How Much Should a Corporation Borrow
Ch. 19 Financing and Valuation

Part Six: Options
Ch. 20 Understanding Options
Ch. 21 Valuing Options
Ch. 22 Real Options

Part Seven: Debt Financing
Ch. 23 Credit Risk and the Value of Corporate Debt
Ch. 24 The Many Different Kinds of Debt
Ch. 25 Leasing

Part Eight: Risk Management
Ch. 26 Managing Risk
Ch. 27 Managing International Risks

Part Nine: Financial Planning and Working Capital Management
Ch. 28 Financial Analysis
Ch. 29 Financial Planning
Ch. 30 Working Capital Management

Part Ten: Mergers, Corporate Control, and Governance
Ch. 31 Mergers
Ch. 32 Corporate Restructuring
Ch. 33 Governance and Corporate Control around the World

Part Eleven: Conclusion
Ch. 34 Conclusion: What We Do and Do Not Know about Finance