Includes glossary and index.

Contents:1. Introduction: The Corporation -- Introduction to financial statement analysis -- Financial decision making and the law of one price -- 2. Time, money and interest rates: The Time value of money -- Interest rates -- Valuing bonds -- 3. Valuing projects and firms: Investment decision rules -- Fundamentals of capital budgeting -- Valuing stocks -- 4. Risk and return: Capital markets and the pricing of risk -- Optimal portfolio choice and the capital asset pricing model-- Estimating the cost of capital -- Investor behavior and capital market efficiency -- 5. Capital structure: Capital structure in a perfect market -- Debt and taxes -- Financial distress, managerial incentives, and information -- Payout policy -- 6. Advanced valuation: Capital budgeting and valuation with leverage -- Valuation and financial modeling: a case study --7. Options: Financial options -- Option valuation -- Real options -- 8. Long-term financing: Raising equity capital -- Debt financing -- Leasing -- 9. Short-term financing: Working capital management -- Short-term financial planning -- 10. Special topics: Mergers and acquisitions -- Corporate governance -- Risk management -- International corporate finance -- Glossary --