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.

Part I Introduction To Corporate Finance

· Introduction to Corporate Finance

· The Objective in Corporate Finance

· The Time Value of Money

· Understanding Financial Statements

· Value and Price: An Introduction

· The Basics of Risk

Part II Investment Analysis

· Estimating Hurdle Rates for Firms

· Estimating Hurdle Rates for Projects

· Estimating Earnings and Cash Flows on Projects

· Investment Decision Rules

· Investment Analysis with Inflation and Exchange Rate Risk

· Project Interactions, Side Benefits, and Side Costs

· Investments in Noncash Working Capital

· Investments in Cash and Marketable Securities

· Investment Returns and Corporate Strategy

Part III The Financing Decision

· An Overview of Financing Choices

· The Financing Process

· The Financing Mix: Tradeoffs on Theory

· The Optimal Financing Mix

· The Financing Mix and Choices

Part IV The Dividend Decision

· Dividend Policy

· Analyzing Cash Returned to Stockholders

· Beyond Cash Dividends: Buybacks, Spinoffs, and Divestitures

Part V Valuation

· Valuation: Principles and Practice

· Value Enhancement: Tools and Techniques

· 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