To help businesses make good investment decisions, fund value-adding projects, or manage and mitigate risks, there will always be a need for people who understand finance. Corporate Financial Management is a comprehensive, understandable introduction that will help prepare you for the real financial world. Finance theory and practice are integrated throughout, reflecting how real-world finance has been profoundly shaped by theoretical developments. No background in finance is assumed.
The 7th Edition explains significant current trends and developments as financial markets continue to innovate and change. It addresses the impact of AI on portfolio management, the emergence of green finance, fintech and cryptocurrencies, highlights financial decisions in big businesses as illustrations, and much more.
Part 1. Introduction
The financial world
Part 2. The investment decision
Project appraisal: net present value and internal rate of return
Project appraisal: cash flow and applications
The decision-making process for investment appraisal
Project appraisal: capital rationing, taxation and inflation
Part 3. Risk and return
Risk and project appraisal
Portfolio theory
The Capital Asset Pricing Model and multi-factor models
Part 4. Sources of finance
Stock markets
Raising equity capital
Long-term debt finance
Short- and medium-term finance, treasury and working capital management
Stock market efficiency
Part 5. Corporate value
Value-based management
Value-creation metrics
The cost of capital
Valuing shares
Capital structure
Dividend policy
Mergers
Part 6. Managing risk
Derivatives
Managing exchange-rate risk
Glossary
Index
