Includes index.

Part 1 Overview of corporate finance: introduction to corporate finance. Part 2 Financial statements and long-term financial planning: working with financial statements; long-term financial planning and growth. Part 3 Valuation of future cash flows; introduction to valuation; stock valuation. Part 4 Capital budgeting: net present value and other investment criteria; making capital investment decisions; project analysis and evaluation. Part 5 Risk and return: some lessons from capital market history; return, risk, and the security market line. Part 6 Cost of capital and long-term financial policy: cost of capital, raising capital; financial leverage and capital structure policy; dividends and dividend policy. Part 7 Short-term financial planning and management: short-term finance and planning; cash and liquidity management; credit and inventory management.

This edition eliminates topics of dubious relevance, downplays theoretical issues and minimizes the use of extensive calculations to illustrate points that are of limited practical use. Three basic themes become the focus of the text: intuition, a unified valuation approach, and managerial focus.

System requirements for accompanying computer disk: IBM PC; Microsoft Windows 95 or higher.