Finance

by Bodie, Zvi; Merton, Robert C.

• ISBN13: 9780137813452
• ISBN10: 0137813457
• Edition: 1st
• Format: Paperback
• Copyright: 1997-10-01
• Publisher: PRENTICE HALL

Summary

This significant new guide to finance has a broader scope and greater emphasis on general principles than most other books of its kind, which typically focus exclusively on corporate finance. Acclaimed authors Bodie and Merton offer an approach balanced among the three "pillars" of finance optimization over time, asset valuation, and risk management. Encompasses all subfields of finance within a single unifying conceptual framework. Offers the "big picture" of resource allocation over time under conditions of uncertainty. Focuses on personal finance topics, such as saving and investing, as well as asset valuation. Provides spreadsheet modeling exercises in the accompanying Prentice Hall Finance Center CD. MARKET: Ideal for executives or for anyone seeking a solid understanding and overview of the field of finance.

Table of Contents

PART I FINANCE AND THE FINANCIAL SYSTEM	1	(80)
Chapter 1 What Is Finance?	1	(20)
Chapter 2 The Financial System	21	(41)
Chapter 3 Interpreting Financial Statements	62	(19)
PART II TIME AND RESOURCE ALLOCATION	81	(76)
Chapter 4 The Time Value of Money	81	(33)
Chapter 5 Extensions and Applications of Time Value of Money: Exchange Rates, Inflation, Taxes, and the Life Cycle	114	(21)
Chapter 6 Capital Budgeting: The Basics	135	(22)
PART III VALUATION	157	(58)
Chapter 7 Principles of Asset Valuation	157	(22)
Chapter 8 Valuation of Known Cash Flows: Bonds	179	(19)
Chapter 9 Valuation of Common Stocks	198	(17)
PART IV RISK MANAGEMENT AND PORTFOLIO THEORY	215	(100)
Chapter 10 An Overview of Risk Management	215	(28)
Chapter 11 Hedging and Insuring	243	(24)
Chapter 12 Portfolio Selection and the Diversification of Risk	267	(32)
Chapter 13 The Capital Asset Pricing Model	299	(16)
PART V THE PRICING OF DERIVATIVES AND CONTINGENT CLAIMS	315	(72)
Chapter 14 Futures Prices	315	(22)
Chapter 15 Option Pricing	337	(22)
Chapter 16 The Valuation of Contingent Claims	359	(28)
PART VI TOPICS IN CORPORATE FINANCIAL MANAGEMENT	387
Chapter 17 Capital Budgeting Extensions	387	(11)
Chapter 18 Capital Structure	398	(22)
Chapter 19 Financial Planning and Working Capital Management	420