Defines corporate finance in a broad sense, covering any decisions made by firms which have financial implications, and focuses on applying complex theory to real firms. Six sections cover corporate finance, the investment decision, the financial decision, how much cash to return to the owners of the business, the value of the firm, and issues such as currency and political risk in foreign markets and the basics of option pricing.
New edition of a text that combines theory and data related to making investment, financing, and dividend decisions. Throughout the chapters, Damodaran (Stern School of Business, New York U.) illustrates principles by analyzing real companies with real problems, with a focus on applying complex theory while minimizing the inevitable compromises involved. Topics include an introduction to corporate finance, investment analysis, the financing and dividend decisions, valuation, and the link between valuation and corporate finance decisions. Annotation c. Book News, Inc., Portland, OR (booknews.com)