Includes a CD-ROM.

Includes bibliographical references and index.

Contents: 1. Value: Finance and the financial manager -- Present value and the cost of capital -- How to calculate present values -- The value of common stocks -- Why net present value leads to better investment decisions than other criteria -- Making investment decisions with the net present value rule -- 2. Risk: Introduction to risk, return and the opportunity cost of capital -- Risk and return -- Capital budgeting and risk -- 3. Practical problems in capital budgeting: A Project is not a black box -- Where positive net present values come from -- Making sure managers maximize NPV -- 4. Financing decisions and market efficiency: Corporate financing and the six lessons of market efficiency -- An overview of corporate financing -- How corporations issue securities 5. Dividend policy and capital structure: The Dividend controversy -- Does debt policy matter -- How much should a firm borrow -- Financing and valuation -- 6. Options: Spotting and valuing options -- Real options -- Warrants and convertibles -- 7. Debt financing: Valuing debt -- The many different kinds of debt -- Leasing -- 8. Risk management: Managing risk -- Managing international risks -- 9. Financial planning and short-term financial management: Financial analysis and planning -- Short-term financial planning -- Credit management -- Cash management -- Short-term lending and borrowing -- 10. Mergers, corporate control and governance: Mergers -- Control, governance and financial architecture -- 11. Conclusions: Conclusion: what we do and do not know about finance --