Fundamentals of Corporate Finance, 4th Edition

Preface xii Key features xiv About the 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 48 4. Analysing financial statements 77 Part 2 Valuation of future cash flows and risk 121 5. The time value of money 122 6. Discounted cash flows and valuation 158 7. Risk and return 196 8. Bond valuation and the structure of interest rates 235 9. Share valuation 270 Part 3 Capital budgeting decisions 298 10. The fundamentals of capital budgeting 299 11. Cash flows and capital budgeting 342 12. Evaluating project economics and capital rationing 375 13. The cost of capital 406 Part 4 Working capital management and financing decisions 440 14. Working capital management 441 15. How companies raise capital 473 16. Capital structure policy 499 17. Dividends and dividend policy 531 Part 5 Business formation, valuation and financial planning 550 18. Business formation, growth and valuation 551 19. Strategic financial planning and forecasting 586 Part 6 Options and corporate finance and international decisions 622 20. Options and corporate finance 623 21. International financial management 652 Appendix A: Present value and future value tables 684 Appendix B: Solutions to self-study problems 692 Index 714