Author Description

This work, combining text with 31 case studies, aims to bridge the gap between basic introductory books and traditional case books. It covers the major aspects of applied corporate finance including time value of money, risk and return, ratio analysis, working capital, capital structure, capital budgeting, mergers and acquisitions and international financial management. The case studies cover the major decision-making areas. This second edition includes new chapters on time value of money, cash flow expectations and risk, economic and institutional environments of the firm. In the re-organization of the chapters, a closer relation has been drawn between the text and the cases quoted and questions and problems have been added to the end of each chapter. The class-tested cases are sufficiently straightforward to be analyzed without a computer, but do also lend themselves to computer analysis. The capital expenditure cases have been improved and expanded, and two new international finance cases added - other additional new cases cover the capital cost determination faced by financial institutions, capital structure management, cash flow analysis and initial price offering/valuation. Ten of the retained cases have been updated to reflect current tax rules and other recent regulations.