What is included with this book?
Preface | p. iv |
Acknowledgments | p. ix |
The Foundations | p. 1 |
The Firm: Structural Set-up | p. 1 |
First Principles | p. 2 |
Corporate Financial Decisions, Firm Value, and Equity Value | p. 5 |
A Real-World Focus | p. 6 |
A Resource Guide | p. 7 |
Some Fundamental Propositions About Corporate Finance | p. 7 |
Conclusion | p. 8 |
The Objective in Decision Making | p. 9 |
Choosing the Right Objective | p. 10 |
The Classical Objective | p. 11 |
Maximize Stock Prices: The Best-Case Scenario | p. 14 |
Maximize Stock Prices: Real-World Conflicts of Interest | p. 14 |
Alternatives to Stock Price Maximization | p. 37 |
Maximize Stock Prices: Salvaging a Flawed Objective | p. 40 |
A Postscript: The Limits of Corporate Finance | p. 53 |
Conclusion | p. 54 |
Live Case Study: Corporate Governance Analysis | p. 55 |
Problems and Questions | p. 57 |
The Basics of Risk | p. 58 |
Motivation and Perspective in Analyzing Risk | p. 59 |
Equity Risk and Expected Returns | p. 60 |
The Risk in Borrowing: Default Risk and the Cost of Debt | p. 87 |
Conclusion | p. 94 |
Live Case Study: Stockholder Analysis | p. 95 |
Problems and Questions | p. 96 |
Risk Measurement and Hurdle Rates in Practice | p. 100 |
Cost of Equity | p. 101 |
From Cost of Equity to Cost of Capital | p. 155 |
Conclusion | p. 174 |
Live Case Study: Risk and Return: Analysis for the Firm | p. 175 |
Problems and Questions | p. 177 |
Measuring Return on Investments | p. 182 |
What Is a Project? | p. 183 |
Hurdle Rates for Firms Versus Hurdle Rates for Projects | p. 185 |
Measuring Returns: The Choices | p. 191 |
Investment Decision Rules | p. 214 |
Probabilistic Approaches to Investment Analysis | p. 239 |
Conclusion | p. 254 |
Live Case Study: Estimating Earnings and Cash Flows | p. 256 |
Problems and Questions | p. 257 |
Project Interactions, Side Costs, and Side Benefits | p. 260 |
Mutually Exclusive Projects | p. 261 |
Side Costs from Projects | p. 282 |
Side Benefits from Projects | p. 287 |
Options Embedded in Projects | p. 293 |
Measuring the Quality of Existing Investments | p. 307 |
Conclusion | p. 321 |
Live Case Study: Estimating Earnings and Cash Flows | p. 323 |
Problems and Questions | p. 324 |
Capital Structure: Overview of the Financing Decision | p. 328 |
The Choices: Types of Financing | p. 329 |
Financing Behavior | p. 340 |
The Process of Raising Capital | p. 347 |
The Tradeoff of Debt | p. 359 |
No Optimal Capital Structure | p. 372 |
There is an Optimal Capital Structure | p. 378 |
How Firms Choose Their Capital Structures | p. 380 |
Conclusion | p. 385 |
Live Case Study: Analyzing a Firm's Current Financing Choices | p. 387 |
Problems and Questions | p. 389 |
Capital Structure: The Optimal Financial Mix | p. 393 |
Operating Income Approach | p. 394 |
Cost of Capital Approach | p. 398 |
Adjusted Present Value Approach | p. 434 |
Comparative Analysis | p. 441 |
Selecting the Optimal Debt Ratio | p. 444 |
Conclusion | p. 445 |
Live Case Study: The Optimal Financing Mix | p. 447 |
Problems and Questions | p. 448 |
Capital Structure: The Financing Details | p. 455 |
A Framework for Capital Structure Changes | p. 456 |
Immediate, Gradual or no Change | p. 456 |
Choosing the Right Financing Instruments | p. 475 |
Conclusion | p. 498 |
Live Case Study: Mechanics of Moving to the Optimal | p. 500 |
Problems and Questions | p. 502 |
Dividend Policy | p. 505 |
Background on Dividend Policy | p. 506 |
When are Dividends Irrelevant? | p. 519 |
The "Dividends are Bad" School | p. 522 |
The "Dividends are Good" School | p. 529 |
Managerial Interests and Dividend Policy | p. 540 |
Conclusion | p. 543 |
Live Case Study: The Tradeoff on Dividend Policy | p. 544 |
Problems and Questions | p. 545 |
Analyzing Cash Returned to Stockholders | p. 546 |
Cash Returned to Stockholders | p. 547 |
A Cash Flow Approach to Analyzing Dividend Policy | p. 555 |
A Comparable Firm Approach to Analyzing Dividend Policy | p. 581 |
Managing Changes in Dividend Policy | p. 585 |
Conclusion | p. 588 |
Live Case Study: A Framework for Analyzing Dividends | p. 589 |
Problems and Questions | p. 591 |
Valuation: Principles and Practice | p. 595 |
Discounted Cash Flow Valuation | p. 597 |
Relative Valuation | p. 649 |
Reconciling Different Valuations | p. 667 |
Conclusion | p. 668 |
Live Case Study: Valuation | p. 669 |
Problems and Questions | p. 671 |
Basic Statistics | p. 675 |
Financial Statements | p. 682 |
Time Value of Money | p. 694 |
Option Pricing | p. 707 |
Glossary | p. 718 |
Index | p. 721 |
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