Principles of corporate finance

Table of Content
Introduction to Corporate Finance

2 How to Calculate Present Values

3 Valuing Bonds

4 The Value of Common Stocks

5 Net Present Value and Other Investment Criteria

6 Making Investment Decisions with the Net Present Value Rule

Part Two: Risk

7 Introduction to Risk and Return

8 Portfolio Theory and the Capital Asset Pricing Model

9 Risk and the Cost of Capital

Part Three: Best Practices in Capital Budgeting

10 Project Analysis

11 Investment, Strategy, and Economic Rents

12 Agency Problems, Compensation, and Performance Measurement

Part Four: Financing Decisions and Market Efficiency

13 Efficient Markets and Behavioral Finance

14 An Overview of Corporate Financing

15 How Corporations Issue Securities

Part Five: Payout Policy and Capital Structure

16 Payout Policy

17 Does Debt Policy Matter?

18 How Much Should a Corporation Borrow?

19 Financing and Valuation

Part Six: Options

20 Understanding Options

21 Valuing Options

22 Real Options

Part Seven: Debt Financing

23 Credit Risk and the Value of Corporate Debt

24 The Many Different Kinds of Debt

25 Leasing

Part Eight: Risk Management

26 Managing Risk

27 Managing International Risks

Part Nine: Financial Planning and Working Capital Management

28 Financial Analysis

29 Financial Planning

30 Working Capital Management

Part Ten: Mergers, Corporate Control, and Governance

31 Mergers

32 Corporate Restructuring

33 Governance and Corporate Control Around the World Part Eleven: Conclusion

34 Conclusion: What We Do and Do Not Know about Finance

Now in its Twelfth Edition, Principle of Corporate Finance continues to be one of the most comprehensive and authoritative presentations of financial theory and practice available. The book has been substantially revised and now reflect some recent developments in the financial markets or company practice. It also aims to explain aspects of theory and concepts from an Indian perspective. This is a leading text worldwide and has proven to be useful to students and financial managers alike.



• Real-life examples and citations

• Detailed coverage of contemporary topics such as Efficient Markets, Peer-to-Peer Lending, Crowdfunding, Behavioural Finance, Ethical Behaviour, Hidden Leverage and Managing International Risks

• Dedicated Chapter on What We Do Know and What We Do Not Know about Finance: Discussion on seven major ideas and the ten unsolved problems of finance