This classic textbook in the field, now completely revised and updated, provides a bridge between theory and practice. It presents a unified treatment of finance combining theory, empirical evidence and applications.
Features * Clear and succinct discussion of current trends and recent contributions to finance literature provides a solid foundation in established finance theory. * Emphasizes applications to help students better understand the uses of Finance theory.
Table Of Contents PART I: FINANCIAL THEORY. * Introduction to Capital Markets, Consumption and Investment. * Investment Decisions: The Certainty Case. * Theory of Choice Under Uncertainty: Utility Theory. * State-Preference Theory. * Objects of Choice. * Market Equilibrium: CAPM and APT. * Pricing Contingent Claims: Option Price Theory and Evidence. * Futures Contracts and Markets - Term Structure - Cox, Ingersoll, Ross. * Multiperiod Aspects of Financial Theory - Real Options - Investment. * Efficient Capital Markets: Theory. * Efficient Capital Market: Evidence. * Information Asymmetry: Agency Cost Theory and Signaling.
PART II: CORPORATE POLICY. * The Role of the CFO and Performance Measurement. * Valuation and Tax Policy. * Capital Structure. * Dividend Policy. * Applied Issues in Corporate Finance. * External Investment Decisions. International Finance: Theory and Evidence. * Open-Ended Issues for Research.