Includes bibliographical references and index.

Introduction to modern corporate finance; economic foundations; the economic system and contracting; the time value of money; the valuation of financial securities; the techniques of capital budgeting; risk and diversification; the capital asset pricing model; an introduction to options; financial leverage; financing in imperfect markets; the dividend decision; corporate ethics and shareholder wealth maximization; estimating project cash flows; advanced topics in capital budgeting; financial analysis and planning; working capital and management; international finance; mergers and reorganizations.

Reinforced by economic principles, this text approaches corporate finance from a modernist perspective. The book strikes a balance between theory and application to demonstrate the usefulness of finance in corporate decision-making. Realistic exercises and examples make the theoretical material easy to understand, and the book's structure - divided into core material and supplementary chapters - allows for maximum flexibility in course structures. Windows located throughout the text provide information on specific topics without breaking the flow of the text and hands-on exercises are sprinkled throughout. A corresponding instructor's manual is available.