Applied Corporate Finance: A User's Manual,9780471239703

Applied Corporate Finance: A User's Manual

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Edition: 1st
ISBN13: 9780471239703
ISBN10: 0471239704
Format: Paperback
Pub. Date: 1999-01-01
Publisher(s): Wiley
List Price: $83.80

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Summary

The final chapter in the book ties the value of the firm to these three decisions, and provides insight into how firms can enhance value.

Author Biography

Aswath Damodaran is Professor of Finance at the Stern School of Business at New York University.

Table of Contents

CHAPTER 1 THE FOUNDATIONS
1(7)
FIRST PRINCIPLES
2(3)
CORPORATE FINANCIAL DECISIONS, FIRM VALUE, AND EQUITY VALUE
5(1)
A REAL-WORLD FOCUS
5(1)
A RESOURCE GUIDE
6(1)
SOME FUNDAMENTAL PROPOSITIONS ABOUT CORPORATE FINANCE
7(1)
CONCLUSION
7(1)
CHAPTER 2 THE OBJECTIVE
8(27)
THE CLASSICAL OBJECTIVE FUNCTION
9(3)
SO WHAT CAN GO WRONG?
12(12)
MAXIMIZE STOCKHOLDER WEALTH, SUBJECT TO...
24(6)
CHOOSING AN ALTERNATIVE OBJECTIVE FUNCTION
30(1)
A POSTSCRIPT--THE LIMITS OF CORPORATE FINANCE
31(1)
CONCLUSION
32(1)
PROBLEMS AND QUESTIONS
32(1)
LIVE CASE STUDY: I. CORPORATE GOVERNMENT ANALYSIS
33(2)
CHAPTER 3 THE BASICS OF RISK
35(29)
INGREDIENTS FOR A GOOD RISK AND RETURN MODEL
36(1)
GENERAL MODELS FOR RISK AND RETURN
36(16)
A COMPARATIVE ANALYSIS OF RISK AND RETURN MODELS
52(2)
MODELS OF DEFAULT RISK
54(5)
CONCLUSION
59(1)
PROBLEMS AND QUESTIONS
59(4)
LIVE CASE STUDY: II. STOCKHOLDER ANALYSIS
63(1)
CHAPTER 4 RISK MEASUREMENT AND HURDLE RATES IN PRACTICE
64(58)
COST OF EQUITY
65(37)
FROM COST OF EQUITY TO COST OF CAPITAL
102(7)
CONCLUSION
109(1)
PROBLEMS AND QUESTIONS
110(9)
LIVE CASE STUDY: III. RISK AND RETURN
119(3)
CHAPTER 5 MEASURING RETURN ON INVESTMENTS
122(66)
WHAT IS A PRODUCT?
123(2)
MEASURING RETURNS: THE CHOICES
125(52)
WHERE DO GOOD PROJECTS COME FROM?
177(3)
CONCLUSION
180(1)
PROBLEMS AND QUESTIONS
181(6)
LIVE CASE STUDY: IV. MEASURING INVESTMENT RETURNS
187(1)
CHAPTER 6 ESTIMATING SIDE COSTS AND BENEFITS
188(25)
OPPORTUNITY COSTS
189(3)
PROJECT SYNERGY
192(4)
OPTIONS EMBEDDED IN PROJECTS
196(14)
CONCLUSION
210(1)
PROBLEMS AND QUESTIONS
210(3)
CHAPTER 7 CAPITAL STRUCTURE: AN OVERVIEW OF THE FINANCING DECISION
213(44)
THE CHOICE: TYPES OF FINANCING
214(2)
EQUITY
216(3)
DEBT
219(2)
HYBRID SECURITIES
221(3)
THE BENEFITS OF DEBT
224(5)
THE COSTS OF DEBT
229(9)
THE TRADE-OFF IN A BALANCE SHEET FORMAT
238(1)
THERE IS NO OPTIONAL CAPITAL STRUCTURE: THE MILLER-MODIGLIANI THEOREM
239(6)
THERE IS AN OPTIONAL CAPITAL STRUCTURE
245(3)
HOW FIRMS CHOOSE THEIR CAPITAL STRUCTURES
248(2)
CONCLUSION
250(1)
PROBLEMS AND QUESTIONS
251(5)
LIVE CASE STUDY: V. CAPITAL STRUCTURE CHOICES
256(1)
CHAPTER 8 CAPITAL STRUCTURE: MODELS AND APPLICATIONS
257(48)
COST OF CAPITAL APPROACH
258(3)
A PRACTICAL FRAMEWORK FOR ANALYZING CAPITAL STRUCTURE
261(24)
ADJUSTED PRESENT VALUE
285(5)
COMPARATIVE ANALYSIS
290(4)
CONCLUSION
294(1)
PROBLEMS AND QUESTIONS
295(8)
LIVE CASE STUDY: VI. OPTIMAL CAPITAL STRUCTURE
303(2)
CHAPTER 9 CAPITAL STRUCTURE--THE FINANCING DETAILS
305(44)
A FRAMEWORK FOR CAPITAL STRUCTURE CHANGES
306(1)
IMMEDIATE OR GRADUAL CHANGE
306(2)
THE PROCESS OF CHANGE
308(12)
WORKING OUT THE DETAILS
320(22)
CONCLUSION
342(1)
PROBLEMS AND QUESTIONS
343(4)
LIVE CASE STUDY: VII. MECHANICS OF MOVING TO THE OPTIMAL
347(2)
CHAPTER 10 THE DETERMINANTS OF DIVIDEND POLICY
349(48)
WAYS OF RETURNING CASH TO STOCKHOLDERS
350(1)
THE HISTORICAL EVIDENCE ON DIVIDENDS
350(5)
DIFFERENCES IN DIVIDEND POLICY ACROSS COUNTRIES
355(4)
WHEN ARE DIVIDENDS IRRELEVANT?
359(4)
THE TAXATION OF DIVIDENDS
363(3)
SOME REASONS FOR PAYING DIVIDENDS THAT DO NOT MEASURE UP
366(2)
SOME GOOD REASONS FOR PAYING DIVIDENDS
368(7)
STOCKHOLDERS, BONDHOLDERS, AND DIVIDENDS
375(1)
STOCKHOLDERS, MANAGERS, AND DIVIDENDS
375(2)
OTHER APPROACHES TO RETURNING CASH TO STOCKHOLDERS
377(1)
EQUITY REPURCHASES
377(6)
FORWARD CONTRACTS TO BUY EQUITY
383(1)
STOCK DIVIDENDS AND STOCK SPLITS
383(2)
DIVESTITURES, SPINOFFS, SPLITUPS, AND SPLITOFFS
385(3)
CHOOSING AMONG THE ALTERNATIVES
388(3)
CONCLUSION
391(1)
PROBLEMS AND QUESTIONS
392(4)
LIVE CASE STUDY: VIII. DIVIDEND POLICY
396(1)
CHAPTER 11 A FRAMEWORK FOR ANALYZING DIVIDEND POLICY
397(41)
BRINGING IT ALL TOGETHER
398(3)
A FRAMEWORK FOR ANALYZING DIVIDEND POLICY
401(14)
POOR PROJECTS AND LOW PAYOUT
415(2)
GOOD PROJECTS AND LOW PAYOUT
417(2)
POOR PROJECTS AND HIGH PAYOUT
419(1)
GOOD PROJECTS AND HIGH PAYOUT
420(4)
AN ALTERNATIVE APPROACH TO ANALYZING DIVIDEND POLICY
424(6)
CONCLUSION
430(1)
PROBLEMS AND QUESTIONS
430(6)
LIVE CASE STUDY: IX. A FRAMEWORK FOR ANALYZING DIVIDENDS
436(2)
CHAPTER 12 BASICS OF VALUATION
438(57)
VALUATION APPROACHES
439(1)
DISCOUNTED CASH FLOW VALUATION
439(5)
EQUITY VALUATION MODELS
444(32)
RELATIVE VALUATION
476(10)
OPTION PRICING APPROACHES TO EQUITY VALUATION
486(1)
CONCLUSION
487(1)
PROBLEMS AND QUESTIONS
488(5)
LIVE CASE STUDY: X. VALUATION
493(2)
APPENDIX 1: BASICS OF STATISTICS: MEANS, VARIANCES, COVARIANCES, AND REGRESSIONS 495(4)
APPENDIX 2: FINANCIAL STATEMENTS 499(14)
APPENDIX 3: PRESENT VALUE 513(15)
APPENDIX 4: OPTION PRICING THEORY 528(20)
INDEX 548

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