ESCP Europe

"The latest edition in the Principles of Corporate Finance dynasty, the 14th edition continues in its tradition of showing how theory applies to the very practical problems and decisions faced by financial managers. Looking at what financial managers do and why, the book aims to give readers a solid understanding of theory so that they know what questions to ask when times change and new problems need to be analyzed, eventually standing as a reference and a guide to help them make financial decisions, not just study them. This new edition welcomes Alex Edmans to the author team, whose global authority and expertise in corporate governance, responsible business and behavioural finance have been invaluable in bolstering coverage of these topics. A new chapter is entirely dedicated to the subject of balancing shareholder value with promoting the interests of all stakeholders, the potential conflicts inherent in this, and how a responsible business should behave. There have been several changes to chapter structure as well as expanded discussion of issues that have grown in importance since the previous edition including behavioural finance, and financial innovation driven by AI, big data and cloud computing. It has also grown to take a more international focus, to bring in more information and perspectives on major developing economies such as China and India, and looking at how financing and governance systems differ around the world. The new edition retains and builds on the pedagogical features of previous editions, with new chapter content summaries, new self-test questions interspersed at key points, and a raft of 'Beyond the page' examples available online through links in the text.t." - from publisher.

Preface --- PART ONE: VALUE --- 1. Introduction to corporate finance --- 2. How to calculate present values --- 3. Valuing bonds --- 4. Valuing stocks --- 5. Net present value and other investment criteria --- 6. Making investment decisions with the net present value rule --- PART TWO: RISK --- 7. Introduction to risk, diversification, and portfolio selection --- 8. The capital asset pricing model --- 9. Risk and the cost of capital --- PART THREE: BEST PRACTICES IN CAPITAL BUDGETING --- 10. Project analysis --- 11. How to ensure that projects truly have positive NPVs --- PART FOUR: FINANCING DECISIONS AND MARKET EFFICIENCY --- 12. Efficient markets and behavioral finance --- 13. An overview of corporate financing --- 14. How corporations issue securities --- PART FIVE: PAYOUT POLICY AND CAPITAL STRUCTURE --- 15. Payout policy --- 16. Does debt policy matter? --- 17. How much should a corporation borrow? --- 18. Financing and valuation --- PART SIX: CORPORATE OBJECTIVES AND GOVERNANCE --- 19. Agency problems and corporate governance --- 20. Stakeholder capitalism and responsible business --- PART SEVEN: OPTIONS --- 21. Understanding options --- 22. Valuing options --- 23. Real options --- PART EIGHT: DEBT FINANCING --- 24. Credit risk and the value of corporate debt --- 25. The many different kinds of debt --- 26. Leasing --- PART NINE: RISK MANAGEMENT --- 27. Managing risk --- 28. International financial management --- PART TEN: FINANCIAL PLANNING AND WORKING CAPITAL MANAGEMENT --- 29. Financial analysis --- 30. Financial planning --- 31. Working capital management --- PART ELEVEN: MERGERS, CORPORATE CONTROL, AND GOVERNANCE --- 32. Mergers --- 33. Corporate restructuring --- PART TWELVE: CONCLUSION --- 34. Conclusion: what we do and do not know about finance --- Glossary..