Principles of Corporate Finance is the worldwide leading text that describes the theory and practice of corporate finance. Throughout the book, the authors show how managers use financial theory to solve practical problems and as a way to respond to change by showing not just how, but why companies and management act as they do. This text is a valued reference for thousands of practicing financial managers.
•New Finance in Practice boxes highlight important finance concepts in real world situations across the globe. Topics include how Goldman Sachs helped mask Greece's debt, Russiaâ€™s economic growth, the IPO of the largest bank in China, TelefÃ³nica cutting its dividend and Japan Airlines filing for bankruptcy.
•Revised end-of-chapter material includes brand new global questions that feature currencies, companies and scenarios from Europe, Middle East, Africa and Asia to increase engagement for international students.
•Global Edition of Connect Plus Finance, McGraw-Hillâ€™s web-based assignment and assessment platform with eBook access, which helps students learn faster, study more efficiently, and retain more knowledge.
Table of contents
Part One: Value
1. Goals and Governance of the Firm
2. How to Calculate Present Values
3. Valuing Bonds
4. The Value of Common Stocks
5. Net Present Value and Other Investment Criteria
6. Making Investment Decisions with the Net Present Value Rule
Part Two: Risk
7. Introduction to Risk and Return
8. Portfolio Theory and the Capital Asset Pricing Model
9. Risk and the Cost of Capital
Part Three: Best Practices in Capital Budgeting
10. Project Analysis
11. Investment, Strategy, and Economic Rents
12. Agency Problems, Compensation, and Performance Measurement
Part Four: Financing Decisions and Market Efficiency
13. Efficient Markets and Behavioral Finance
14. An Overview of Corporate Financing
15. How Corporations Issue Securities
Part Five: Payout Policy and Capital Structure
16. Payout Policy
17. Does Debt Policy Matter?
18. How Much Should a Firm Borrow?
19. Financing and Valuation
Part Six: Options
20. Understanding Options
21. Valuing Options
22. Real Options
Part Seven: Debt Financing
23. Credit Risk and the Value of Corporate Debt
24. The Many Different Kinds of Debt
Part Eight: Risk Management
26. Managing Risk
27. Managing International Risks
Part Nine: Financial Planning and Working Capital Management
28. Financial Analysis
29. Financial Planning
30. Working Capital Management
Part Ten: Mergers, Corporate Control, and Governance
32. Corporate Restructuring
33. Governance and Corporate Control Around the World
Part Eleven: Conclusion
34. Conclusion: What We Do and Do Not Know About Finance