Part I
OVERVIEW
1 Introduction to Corporate Finance 1
2 Financial Statements and Cash Flow 20
3 Financial Statements Analysis and Financial Models 42
Part II
VALUATION AND CAPITAL BUDGETING
4 Discounted Cash Flow Valuation 85
5 Net Present Value and Other Investment Rules 133
6 Making Capital Investment Decisions 169
7 Risk Analysis, Real Options, and Capital Budgeting 205
8 Interest Rates and Bond Valuation 235
9 Stock Valuation 270
Part III
RISK
10 Lessons from Market History 299
11 Return, Risk, and the Capital Asset Pricing Model 328
12 An Alternative View of Risk and Return 371
13 Risk, Cost of Capital, and Valuation 393
Part IV
CAPITAL STRUCTURE AND DIVIDEND POLICY
14 Efficient Capital Markets and Behavioral Challenges 430
15 Long-Term Financing 470
16 Capital Structure: Basic Concepts 490
17 Capital Structure: Limits to the Use of Debt 523
18 Valuation and Capital Budgeting for the Levered Firm 555
19 Dividends and Other Payouts 577

Part V
LONG-TERM FINANCING
20 Raising Capital 616
21 Leasing 653
Part VI
OPTIONS, FUTURES, AND CORPORATE FINANCE
22 Options and Corporate Finance 677
23 Options and Corporate Finance: Extensions and Applications 722
24 Warrants and Convertibles 745
25 Derivatives and Hedging Risk 766
Part VII
SHORT-TERM FINANCE
26 Short-Term Finance and Planning 799
27 Cash Management 829
28 Credit and Inventory Management 851
Part VIII
SPECIAL TOPICS
29 Mergers, Acquisitions, and Divestitures 880
30 Financial Distress 923
31 International Corporate Finance 939
Appendix A: Mathematical Tables 967
Appendix B: Solutions to Selected End-of-Chapter Problems 976
Appendix C: Using the HP 10B and TI BA II Plus Financial Calculators 979
Glossary 983
Name Index 991
Subject Index 994