Book Summary of Corporate Finance Theory And Practice Aswath Damodaran is nationally recognized for his teaching approach, using theory and the models that flow from it to understand, analyze and solve problems. He treats corporate finance as a living discipline by making it much more applied than other textbooks. Throughout the text, real companies and real data are used in examples and exercises.
About The Author Aswath Damodaran is a professor of finance at the Stern School of Business at New York University, and teaches the corporate finance and equity valuation courses in the MBA program. He received his MBA and Ph.D. from the University of California at Los Angeles. His research interest lies in valuation and applied corporate finance. He has published articles in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies, and has written two books on equity valuation (Damodaran on Valuation and Investment Valuation) and two on corporate finance (Corporate Finance: Theory and Practice and Applied Corporate Finance: A User's Manual). He has co-edited a book on investment management with Peter Bernstein (Investment Management) and is working on a book on investment philosophies.
He was a visiting lecturer at the University of California, Berkeley, from 1984 to 1986, where he received the Earl Cheit Outstanding Teaching Award in 1985. He has been at NYU since 1986, received the Stern School of Business Excellence in Teaching Award (awarded by the graduating class) in 1988, 1991, 1992, and 1999 and was the youngest winner of the University-wide Distinguished Teaching Award (in 1990). He was profiled in Business Week as one of the top twelve business school professors in the United States in 1994.
Table Of Contents Part I Introduction To Corporate Finance o Preface o A Reader's Guide o The Objective in Corporate Finance o The Time Value of Money o Understanding Financial Statements o Value and Price: An Introduction o The Basics of Risk Part II Investment Analysis o Estimating Hurdle Rates for Firms o Estimating Earnings and Cash Flows on Projects o Investment Decision Rules o Investment Analysis with Inflation and Exchange Rate Risk o Project Interactions, Side Benefits, and Side Costs o Investments in Noncash Working Capital o Investments in Cash and Marketable Securities o Investment Returns and Corporate Strategy Part III The Financing Decision o An Overview of Financing Choices o The Financing Process o The Financing Mix: Tradeoffs on Theory o The Optimal Financing Mix o The Financing Mix and Choices Part IV The Dividend Decision o Dividend Policy o Analyzing Cash Returned to Stockholders o Beyond Cash Dividends: Buybacks, Spinoffs, and Divestitures Part V Valuation o Valuation: Principles and Practice o Value Enhancement: Tools and Techniques o Acquisitions and Takeovers Part VI The Link Between Valuation And Corporate Finance Decisions • Option Applications in Corporate Finance • Back to First Principles • Solutions to Odd-Numbered Questions and Problems • Index