In today's competitive business environment, companies must find innovative ways to enable rapid and sustainable growth. Corporate Finance has been designed to help students develop the skills to achieve this goal. Completely updated for a post crisis envioronment, the 2nd edition once again written by this distinguished team from the CFA Institute, has provided complete coverage of the most important issues surrounding modern corporate finance for a new global economy. Created for a wide range of readers, Corporate Finance focuses on the knowledge, skills and abilities you need to succeed in today's fast-paced, and ever evolving business world. Special Features • Preserves the hallmark conciseness of the first edition while offering expanded coverage of key topics including dividend policy, share repurchases, and capital structure • Current, real-world examples are integrated throughout the book to provide the reader with a concrete understanding of critical business growth concepts • Explanations and examples are rigorous and global, but make minimal use of mathematics • Each chapter presents learning objectives which highlight key material, helping the reader glean the most effective business advice possible Table of Content Foreword Acknowledgments About the CFA Institute Investment Series Chapter 1 Corporate Governance 1. Introduction 2. Corporate Governance: Objectives and Guiding Principles 3. Forms of Business and Conflicts of Interest 4. Specific Sources of Conflict: Agency Relationships 5. Corporate Governance Evaluation 6. Environmental, Social and Governance Factors 7. Valuation Implications of Corporate Governance 8. Summary Chapter 2 Capital Budgeting 1. Introduction 2. The Capital Budgeting Process 3. Basic Principles of Capital Budgeting 4. Investment Decision Criteria 5. Cash Flow Projections 6. More on Cash Flow Projections 7. Project Analysis and Evaluation 8. Other Income Measures and Valuation Models 9. Summary Chapter 3 Cost of Capital 1. Introduction 2. Cost of Capital 3. Costs of the Different Sources of Capital 4. Topics in Cost of Capital Estimation 5. Summary Chapter 4 Measures of Leverage 1. Introduction 2. Leverage 3. Business Risk and Financial Risk 4. Summary Chapter 5 Capital Structure 1. Introduction 2. The Capital Structure Decision 3. Practical Issues in Capital Structure Policy 4. Summary Chapter 6 Dividends and Share Repurchases: Basics 1. Introduction 2. Dividends: Forms 3. Dividends: Payment Chronology 4. Share Repurchases 5. Concluding Remarks 6. Summary Chapter 7 Dividends and Share Repurchases: Analysis 1. Introduction 2. Dividend Policy and Company Value: Theory 3. Factors Affecting Dividend Policy 4. Payout Policies 5. Analysis of Dividend Safety 6. Summary Chapter 8 Working Capital Management 1. Introduction 2. Managing and Measuring Liquidity 3. Managing the Cash Position 4. Investing Short-Term Funds 5. Managing Accounts Receivable 6. Managing Inventory 7. Managing Accounts Payable 8. Managing Short-Term Financing 9. Summary Chapter 9 Financial Statement Analysis 1. Introduction 2. Common-Size Analysis 3. Financial Ratio Analysis 4. Pro Forma Analysis 5. Summary Chapter 10 Mergers and Acquisitions 1. Introduction 2. Mergers and Acquisitions: Definitions and Classifications 3. Motives for Merger 4. Transaction Characteristics 5. Takeovers 6. Regulation 7. Merger Analysis 8. Who Benefits from Mergers? 9. Corporate Restructuring 10. Summary Problems Glossary References About the Authors About the CFA Program Index