Front Matter 1
Preface 1
I. Overview 8
Introduction 8
1. Introduction to Corporate Finance 9
2. Accounting Statements and Cash Flow 29
II. Value and Capital Budgeting 51
Introduction 51
3. Financial Markets and Net Present Value: First Principles of Finance
(Adv.) 52
4. Net Present Value 72
5. How to Value Bonds and Stocks 108
6. Some Alternative Investment Rules 146
7. Net Present Value and Capital Budgeting 175
8. Strategy and Analysis in Using Net Present Value 206
III. Risk 225
Introduction 225
9. Capital Market Theory: An Overview 226
10. Return and Risk: The Capital−Asset−Pricing Model 248
11. An Alternative View of Risk and Return: The Arbitrage Pricing
Theory 291
12. Risk, Cost of Capital, and Capital Budgeting 313
IV. Capital Structure and Dividend Policy 343
Introduction 343
13. Corporate−Financing Decisions and Efficient Capital Markets 345
14. Long−Term Financing: An Introduction 377
15. Capital Structure: Basic Concepts 396
16. Capital Structure: Limits to the Use of Debt 428
17. Valuation and Capital Budgeting for the Levered Firm 474
18. Dividend Policy: Why Does It Matter? 501
V. Long−Term Financing 539
Introduction 539
19. Issuing Securities to the Public 540
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20. Long−Term Debt 569
21. Leasing 592
VI. Options, Futures, and Corporate Finance 617
Introduction 617
22. Options and Corporate Finance: Basic Concepts 618
23. Options and Corporate Finance: Extensions and Applications 656
24. Warrants and Convertibles 680
25. Derivatives and Hedging Risk 701
VII. Financial Planning and Short−Term Finance 736
Introduction 736
26. Corporate Financial Models and Long−Term Planning 737
27. Short−Term Finance and Planning 751
28. Cash Management 776
29. Credit Management 803
VIII. Special Topics 820
Introduction 820
30. Mergers and Acquisitions 821
31. Financial Distress 859
32. International Corporate Finance 877
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