TABLE OF CONTENTS

1. Introduction to corporate finance
2. Accounting statements and cash flow
3. Financial markets and net present value : first principles of finance (advanced)
4. Net present value
5. How to value bonds and stocks
6. Some alternative investment rules
7. Practical application of capital budgeting techniques
8. Capital markets : an overview
9. Return and risk
10. An alternative view of risk and return : the arbitrage-pricing theory
11. Risk, return, and capital budgeting
12. Corporate-financing decisions and efficient capital markets
13. Long-term financing : an introduction
14. Capital structure : basic concepts
15. Capital structure : limits to the use of debt
16. Capital budgeting, the weighted average cost of capital, and adjusted present value
17. Dividend policy : does it matter?
18. Issuing equity securities to the public
19. Long-term debt
20. Options and corporate finance
21. Warrants and convertibles
22. Leasing
23. Hedging risk
24. Corporate financial models and long-term planning
25. Short-term finance and planning
26. Cash management
27. Credit management
28. Mergers and acquisitions
29. International corporate finance.

This book emphasizes the modern fundamentals of the theory of finance while providing contemporary examples to make the theory come to life. The authors aim to present corporate finance as the working of a small number of integrated and powerful intuitions, rather than a collection of unrelated topics. They develop the central concepts of modern finance: arbitrage, net present value, efficient markets, agency theory, options, and the trade-off between risk and return, and use them to explain corporate finance with a balance of theory and application.