Fundamentals of Corporate Finance

Fundamentals of Corporate Finance

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Fundamentals of Corporate Finance 2e reflects the reality that Finance as an intellectual discipline continues to be challenged by the experiences and events of market activity. Following the global financial crisis (GFC), mangers have embarked on even more uncertain times. Thus, although the teaching of finance may have remained robust as a framework of conceptual thought, it is imperative that students come to realise that "finance is not physics", by which we mean that even a concept as foundational to financial management as the capital asset pricing model (CAPM) should not be interpreted as a literal truth. This leads to a consideration of managing risk and risk management approaches as having behavioural aspects that are the outcomes of a manager s or the firm s accumulated experience. They cannot always be reduced to the simple directives of a quantitative algorithm. The text helps students develop the intuition and analytical skills necessary to effectively apply financial tools in real-world decision-making situations.
The text provides a fully integrated framework for understanding how value creation relates to all aspects of corporate finance: whether it be evaluating an investment opportunity, determining the appropriate financing for a business, or managing working capital. This unique and integrated framework also enables students to develop problem solving and decision-making skills. The 2nd edition has undergone a thorough revision to the end of chapter materials, and the internal design of the book has been revamped to make it more visually appealing. As a result the text is far easier to navigate for students and is significantly more engaging in its presentation. The ground breaking Wiley E-Text version of Fundamentals of Corporate Finance 2e features narrated concept summaries, animated demo problems, stepped tutorials and interactive end of chapter materials to allow students to attempt the problems in the text and receive immediate feedback. Students can also do key word searches within the E-Text, highlight content of interest and make notes. Wiley The E-Text can be used on all popular platforms and devices including OC, Mac, iPad, Android and Kindle Fire.
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Product details

  • Paperback | 824 pages
  • 214 x 252 x 27mm | 1,482g
  • New York, United States
  • English
  • 2nd Edition
  • 1118378075
  • 9781118378076
  • 932,287

Table of contents

About the authors xi Preface xiii Organisation and coverage xv Applications at a glance xviii How to use this book xx Acknowledgements xxiii Student and lecturer resources xxiv Selected abbreviations and notation xxv PART 1. Introduction CHAPTER 1. The financial manager and the company 2 PART 2. Foundations CHAPTER 2. The financial system and the level of interest rates 30 CHAPTER 3. Financial statements, cash flows and tax 56 CHAPTER 4. Analysing financial statements 88 PART 3. Valuation of future cash flows and risk CHAPTER 5. The time value of money 138 CHAPTER 6. Discounted cash flows and valuation 178 CHAPTER 7. Risk and return 222 CHAPTER 8. Bond valuation and the structure of interest rates 266 CHAPTER 9. Share valuation 302 PART 4. Capital budgeting decisions CHAPTER 10. The fundamentals of capital budgeting 334 CHAPTER 11. Cash flows and capital budgeting 380 CHAPTER 12. Evaluating project economics and capital rationing 416 CHAPTER 13. The cost of capital 448 PART 5. Working capital management and financing decisions CHAPTER 14. Working capital management 486 CHAPTER 15. How companies raise capital 520 CHAPTER 16. Capital structure policy 548 CHAPTER 17. Dividends and dividend policy 584 PART 6. Business formation, valuation and financial planning CHAPTER 18. Business formation, growth and valuation 608 CHAPTER 19. Strategic financial planning and forecasting 646 PART 7. Options and corporate finance and international decisions CHAPTER 20. Options and corporate finance 684 CHAPTER 21. International financial management 714 Appendix A: Present value and future value tables 746 Appendix B: Solutions to self-study problems 754 Glossary 777 Index 785
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About Robert Parrino

Robert Parrino is the Lamar Savings Centennial Professor of Finance in the McCombs School of Business, University of Texas at Austin. He is the Associate Editor of the Journal of Corporate Finance and the Journal of Financial Research. He has experience in the application of corporate finance concepts in a variety of business situations and researches on corporate governance, financial policies, restructuring, mergers and acquisitions, and private equity markets. David S. Kidwell is Professor of Finance and Dean Emeritus at the Curtis L. Carlson School of Management, University of Minnesota. He has over 30 years experience in financial education, as a teacher, researcher and administrator. He has published in leading journals such as Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Financial Management and Journal of Money, Credit and Banking. Hue Hwa Au Yong is a Senior Lecturer in the Department of Accounting and Finance at Monash University. Prior to this, she completed her PhD in the area of risk management at Monash University. Her research has been published in several international peer reviewed journals including Journal of International Financial Markets, Institutions and Money, Australian Journal of Management and International Review of Financial Analysis. She specialises in teaching corporate finance. In 2009, she was awarded the Faculty of Business and Economics Dean s Commendation for Outstanding Teaching. Michael Dempsey is a Professor of Finance in the Department of Economics, Finance and Marketing at RMIT University. Prior to this he was with Monash University and Griffith University, having previously been at Leeds University, United Kingdom. He also has many years experience working for the petroleum exploration industry in the Middle East, Egypt, Aberdeen and London. His PhD was obtained in Astrophysics. His teaching responsibilities have been in corporate and investment fi nance, international fi nance, derivatives and fi nancial engineering. He is an active researcher and research supervisor in the area of fi nancial markets and the formation of asset prices, where he has continued to publish as well as referee major journal articles. Samson Ekanayake is a Senior Lecturer in finance at Deakin University. He has been teaching business and corporate finance at Deakin since 1992 and also served as the Discipline Leader for Finance until July 2010. Samson has won several awards for teaching excellence in business fi nance and was nominated for Faculty Awards for innovative teaching in 2010. His research interests include corporate finance, management control and enterprise risk management. Before joining Deakin University, he held senior managerial positions in accounting and finance in several reputed companies. To name a few, he was the fi nance manager of Mitsubishi Olayan Machinery Industries, Corporate Treasurer of The Finance Company, and Economist of Fiji Sugar Corporation. Samson is a Chartered Accountant and a Certifi ed Practising Accountant. He completed his post-graduate studies at The University of Lancaster in England. Jennifer Kofoed is a Lecturer in the School of Business and Law at Central Queensland University. She has over twelve years teaching experience and specialises in teaching corporate finance and auditing and professional practice. In 2008, she was awarded the Faculty of Business and Informatics Award for Teaching Excellence and Central Queensland University s Innovative Teacher of the Year Award. Jenny was awarded an ALTC Citation for Outstanding Contributions to Student Learning in 2009. Her research interests focus on improving her teaching strategies to maximise student learning. In 2009, she was awarded an Outstanding Paper Award at the World Conference on Educational Media & Technology in Honolulu and the Edith Cowan Authentic Learning Award at the Higher Education Research and Development Society of Australasia Conference in Darwin. Nigel Morkel-Kingsbury is a Lecturer in the Department of Banking and Finance at Monash University. He is an experienced educator at both graduate and undergraduate levels, specialising in teaching corporate finance and international study programs. His research interests and publications include the following areas: Central bank transparency and interest rates the topic of his doctoral thesis; monetary policy; corporate finance; and initial public off erings. James Murray previously taught at Monash University, and has also tutored at Swinburne University of Technology and Lincoln University. He completed his PhD in the area of dividend policy at Monash University. His research interests primarily relate to the role of the legal and tax environment in corporate finance.
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25 ratings
3.08 out of 5 stars
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3 36% (9)
2 16% (4)
1 12% (3)
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