Includes bibliographical references and index.

Part 1: Value. Introduction to corporate finance ; How to calculate present values ; Valuing bonds ; The value of common stocks ; Net present value and other investment criteria ; Making investment decisions with the net present value rule -- Part 2: Risk. Introduction to risk and return ; Portfolio theory and the capital asset pricing model ; Risk and the cost of capital -- Part 3: Best practices in capital budgeting. Project analysis ; Investment, strategy, and economic rents ; Agency problems, compensation, and performance measurement -- Part 4: Financing decisions and market efficiency. Efficient markets and behavioral finance ; An overview of corporate financing ; How corporations issue securities -- Part 5: Payout policy and capital structure. Payout policy ; Does debt policy matter? ; How much should a corporation borrow? ; Financing and valuation -- Part 6: Options. Understanding options ; Valuing options ; Real options -- Part 7: Debt financing. Credit risk and the value of corporate debt ; The many different kinds of debt ; Leasing -- Part 8: Risk management. Managing risk ; Managing international risks -- Part 9: Financial planning and working capital management. Financial analysis ; Financial planning ; Working capital management -- Part 10: Mergers, corporate control, and governance. Mergers ; Corporate restructuring ; Governance and corporate control around the world -- Part 11: Conclusion. Conclusion: What we do and do not know about finance.