Includes bibliographical references and index.

Introduction to corporate finance -- How to calculate present values -- Valuing bonds -- The value of common stocks -- Net value and other investment criteria -- Making investment decisions with the net present value rule -- Introduction to risk and return -- Portfolio theory and the capital asset pricing model -- Risk and the cost of capital -- Project analysis -- How to ensure that projects truly have positive NPVs -- Agency problems and investment -- Efficient markets and behavioral finance -- An overview of corporate financing -- How corporations issue securities -- Payout policy -- Does debt policy matter? -- How much should a corporation borrow? -- Financing and valuation -- Understanding options -- Valuing options -- Real options -- Credit risk and the value of corporate debt -- The many different kinds of debt -- Leasing -- Managing risk -- Managing international risks -- Financial analysis -- Financial planning -- Working capital management -- Mergers -- Corporate restructuring -- Governance and corporate control around the world -- Conclusion: what we do and do not know about finance.

This new international edition provides increased coverage of the procedures for estimating the cost of capital, expanded coverage of risk management techniques and the use and misuse of derivatives, and additional coverage of agency problems.