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Corporate Financial Management 6th Edition

Corporate Financial Management 6th Edition

6th Edition

Glen Arnold, Deborah Lewis

Feb 2019, Paperback, 1128 pages
ISBN13: 9781292140445
ISBN10: 1292140445
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"The book combines academic rigour (in the explanation of theory) with practical application (explaining how companies apply theory in real life). There are lots of numerical examples to help with understanding of the concepts covered." Dr Rob Jones, Newcastle University Business School

The sixth edition of this highly respected text is comprehensive yet accessible, with real-world case studies to ground you in the application of important concepts.

Written with authority by authors steeped in the financial world, the book offers a comprehensive survey of the theory and practice of corporate finance for anyone studying the topic by itself or within business, accounting, finance, banking or economics courses, teaching you how to make informed, successful financial decisions that are crucial for a career in business.

It explores topics such as investment appraisal, risk and return, sources of finance, and risk management, including derivatives, and gives a unique treatment of corporate value.

Key features

  • Financial techniques are illustrated in practical terms, using clear accessible language.
  • New Financial Times articles help you see the relevance of the theory to the real world
  • Finance is presented as a dynamic subject that is open to theoretical re-evaluation
  • Extensive range of examples and case studies, with statistics and data ranging from the number of corporate mergers to the default rates on corporate bonds
  • Easy-to-follow mathematical explanations

Glen Arnold runs an investment fund and previously held positions as professor of finance and professor of investing. In addition to the textbook Modern Financial Markets and Institutions he has authored leading investment and banking books including The Financial Times Guide to Investment, The FT Guide to Banking and The FT Guide to Value Investing.

Deborah Lewis is a Senior Teaching Fellow at the University of Bath. As Director of Studies for the Bath MBA programme, which features in the top 100 of the FT Global MBA 2018 Ranking, she ensures the material is useful for both the student and the practitioner. Deb’s previous commercial experience allows her to blend academic theory with professional application.

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Brief contents

Topics covered in the book xxi
Introduction to the book xxiii
Acknowledgements xxix
Part 1 Introduction 1
1 The financial world 2
Part 2 The investment decision 49
2 Project appraisal: net present value and internal rate of return 50
3 Project appraisal: cash flow and applications 89
4 The decision-making process for investment appraisal 125
5 Project appraisal: capital rationing, taxation and inflation 151
Part 3 Risk and return 173
6 Risk and project appraisal 174
7 Portfolio theory 222
8 The Capital Asset Pricing Model and multi-factor models 268
Part 4 Sources of finance 327
9 Stock markets 328
10 Raising equity capital 365
11 Long-term debt finance 422
12 Short- and medium-term finance, treasury and working capital management 474
13 Stock market efficiency 542
Part 5 Corporate value 611
14 Value-based management 612
15 Value-creation metrics 658
16 The cost of capital 704
17 Valuing shares 738
18 Capital structure 787
19 Dividend policy 840
20 Mergers 868
Part 6 Managing risk 927
21 Derivatives 928
22 Managing exchange-rate risk 974
Appendices A:1
I Future value of £1 at compound interest A:2
II Present value of £1 at compound interest A:3
III Present value of an annuity of £1 at compound interest A:4
IV Future value of an annuity of £1 at compound interest A:5
V Areas under the standardised normal distribution A:6
VI Answers to the mathematical tools exercises in Chapter 2, Appendix 2.1 A:7
Glossary G:1
Bibliography B:1
Index I:1

  • Financial techniques are illustrated in practical terms, using clear accessible language.
  • New Financial Times articles help you see the relevance of the theory to the real world
  • Finance is presented as a dynamic subject that is open to theoretical re-evaluation
  • Extensive range of examples and case studies, with statistics and data ranging from the number of corporate mergers to the default rates on corporate bonds
  • Easy-to-follow mathematical explanations

Glen Arnold runs an investment fund and previously held positions as professor of finance and professor of investing. In addition to the textbook Modern Financial Markets and Institutions he has authored leading investment and banking books including The Financial Times Guide to Investment, The FT Guide to Banking and The FT Guide to Value Investing.

Deborah Lewis is a Senior Teaching Fellow at the University of Bath. As Director of Studies for the Bath MBA programme, which features in the top 100 of the FT Global MBA 2018 Ranking, she ensures the material is useful for both the student and the practitioner. Deb’s previous commercial experience allows her to blend academic theory with professional application.