Highly respected for its effective integration of financial theory and practice, this classic book explores the rapidly evolving and exciting theory of finance as it relates to a corporation's investment in assets, financing, and dividends, explains the ways in which analytical techniques are brought to bear on financial decision making, and supplies the institutional material necessary for a solid understanding of the environment in which financial decisions are made. New cases are added, highlighting for readers major issues in financial analysis, valuation, and financing. Extensively revised coverage of relevant topics throughout provides new and updated information on topics such as efficient markets, share repurchase, empirical evidence, electronic funds transfers, loan pricing, private placements, tax treatment of preferred-stock dividends and tax-deductible preferred stock, exotic securities used in corporate finance, and many others. Financial analysis and analytical techniques are discussed in conjunction, applying these topics as they relate to financial decision making with an emphasis on formulating alternatives, analyzing them, and reaching a decision. An excellent resource for professionals in positions such as treasurer, controller, banker, investment banker, investment manager, or chief financial officer.
Table of Contents
I. FOUNDATIONS OF FINANCE.
Vignette: Problems at Gillette.
1. Goals and Functions of Finance.
2. Concepts in Valuation.
3. Market Risk and Returns.
4. Multivariable and Factor Valuation.
5. Option Valuation.
II. INVESTMENT IN ASSETS AND REQUIRED RETURNS.
Case: Fazio Pump Corporation.
6. Principles of Capital Investment.
7. Risk and Real Options in Capital Budgeting.
8. Creating Value through Required Returns.
Case: National Foods Corporation.
III. FINANCING AND DIVIDEND POLICIES.
Case: Restructuring the Capital Structure at Marriott.
9. Theory of Capital Structure.
10. Making Capital Structure Decisions.
11. Dividends and Share Repurchase: Theory and Practice.
IV. TOOLS OF FINANCIAL ANALYSIS AND CONTROL.
Case: Morley Industries, Inc.
12. Financial Ratio Analysis.
13. Financial Planning.
V. LIQUIDITY AND WORKING CAPITAL MANAGEMENT.
Case: Caceres Semilla S.A. de C.V.
14. Liquidity, Cash, and Marketable Securities.
15. Management of Accounts Receivable and Inventories.
16. Liability Management and Short/Medium Term Financing.
VI. CAPITAL MARKET FINANCING AND RISK MANAGEMENT.
Case: Dougall & Gilligan Global Agency.
17. Foundations for Longer-Term Financing.
18. Lease Financing.
19. Issuing Securities.
20. Fixed-Income Financing and Pension Liability.
21. Hybrid Financing through Equity-Linked Securities.
22. Managing Financial Risk.
VII. EXPANSION AND CONTRACTION.
Case: Rayovac Corporation.
23. Mergers and the Market for Corporate Control.
24. Corporate and Distress Restructuring.
25. International Financial Management.
Appendix: Present-Value Tables and Normal Probability Distribution Table.