Fundamentals of Corporate Finance, 5th Edition

Preface xii
Key features xiv
About the adapting authors xv

Part 1 Introduction and foundations 1

1. The financial manager and the company 2

2. The financial environment and the level of interest rates 25

3. Financial statements, cash flows and tax 49

4. Analysing financial statements 81

Part 2 Valuation of future cash flows and risk 125

5. The time value of money 126

6. Discounted cash flows and valuation 161

7. Risk and return 199

8. Bond valuation and the structure of interest rates 241

9. Share valuation 273

Part 3 Capital budgeting decisions 301

10. The fundamentals of capital budgeting 302

11. Cash flows and capital budgeting 347

12. Evaluating project economics and capital rationing 379

13. The cost of capital 409

Part 4 Working capital management and financing decisions 443

14. Working capital management 444

15. How companies raise capital 475

16. Capital structure policy 503

17. Dividends and dividend policy 535

Part 5 Business formation, valuation and financial planning 555

18. Business formation, growth and valuation 556

19. Strategic financial planning and forecasting 591

Part 6 Options and corporate finance and international decisions 627

20. Options and corporate finance 628

21. International financial management 657
Appendix A: Present value and future value tables 688
Appendix B: Solutions to self-study problems 697
Index 717