Includes bibliographical references and index.

Part 1 Overview: introduction to corporate finance; accounting statements and cash flow. Part 2 Value and capital budgeting : financial markets and net present value - first principles of finance; net present value; how to value bonds and stocks; some alternative investment rules; net present value and capital budgeting; strategy and analysis in using net present value. Part 3 Risk: capital market theory - an overview; return risk - the capital asset pricing model (CAPM); risk, return, and capital budgeting. Part 4 Capital structure and dividend policy: corporate financing decisions and efficient capital markers; long-term financing - an introduction; capital structure - basic concepts; capital structure - limits to the use of debit; valuation and capital budgeting for the levered firm; dividend policy - why does it matter? Part 5 Long-term financing: issuing equity securities to the public; long-term debit; options and corporate finance; options and corporate finance - extensions and applications; warrants and convertibles; leasing; derivatives and hedging risk. Part 6 Financial planning and short-term finance: corporate financial models and long-term planning; short-term finance and planning; cash management; credit management. Part 7 Special topics: mergers and acquisitions; financial distress; international corporate finance. Appendices: mathematical tables; selected answers to end-of-chapter problems.

Designed for students taking an MBA-level course, this text emphasizes the modern fundamentals of the theory of finance. The authors use contemporary real-world examples and problems to illustrate such theory.