Finance Theory - Lecture Notes by Robert C. Merton
1982 325 pages pdf format
Table of Contents
I. Introduction
II. On the Arithmetic of Compound Interest: The Time Value of Money
III. On the Theory of Accumulation and Intertemporal Consumption Choice by
Households in an Environment of Certainty
IV. On the Role of Business Firms, Financial Instruments and Markets in an
Environment of Certainty
V. The "Default-Free" Bond Market and Financial Intermediation in Borrowing
and Lending
VI. The Value of the Firm Under Certainty
VII. The Firm's Investment Decision Under Certainty: Capital Budgeting and
Ranking of New Investment Projects
VIII. Forward Contracts, Futures Contracts and Options
IX. The Financing Decision by Firms: Impact of Capital Structure Choice on
Value
X. The Investor's Decision Under Uncertainty: Portfolio Selection
XI. Implications of Portfolio Theory for the Operation of the Capital Markets: The
Capital Asset Pricing Model
XII. Risk-Spreading via Financial Intermediation: Life Insurance
XIII. Optimal Use of Security Analysis and Investment Management
XIV. Theory of Value and Capital Budgeting Under Uncertainty
XV. Introduction to Mergers and Acquisitions: Firm Diversification
XVI. The Financing Decision by Firms: Impact of Dividend Policy on Value