In the fourth edition of Introduction to Corporate Finance, authors Laurence Booth and Sean Cleary welcome new author Ian Rakita. The addition of a new author further enhances this already great ground up Canadian text. The fourth edition has been revised to be even more user friendly and engaging. Content has been restructured with additional sub headings in some chapters and the merger of some sections in others all with the goal of aiding comprehension and retention. The text continues to provide undergraduate students with the most thorough, accessible, accurate, and current coverage of the theory and application of corporate finance within a uniquely Canadian context. This text will provide students with the skills they need to succeed not only in the undergraduate course, but in their future careers.
Table of Contents
PART 1: THE FINANCIAL ENVIRONMENT 1Chapter 1: An Introduction to Finance 3
Chapter 2: Business (Corporate) Finance 29
PART 2: FINANCIAL ANALYSIS TOOLS 55
Chapter 3: Financial Statements 57
Chapter 4: Financial Statement Analysis and Forecasting 97
PART 3: VALUATION BASICS 141
Chapter 5: Time Value of Money 143
Chapter 6: Bond Valuation and Interest Rates 185
Chapter 7: Equity Valuation 225
PART 4: PORTFOLIO AND CAPITAL MARKET THEORY 263
Chapter 8: Risk, Return, and Portfolio Theory 265
Chapter 9: The Capital Asset Pricing Model (CAPM) 307
Chapter 10: Market Efficiency 339
PART 5: DERIVATIVE SECURITIES 371
Chapter 11: Forwards, Futures, and Swaps 373
Chapter 12: Options 415
PART 6: LONG–TERM INVESTMENT DECISIONS 455
Chapter 13: Capital Budgeting, Risk Considerations, and Other Special Issues 457
Chapter 14: Cash Flow Estimation and Capital Budgeting Decisions 493
Chapter 15: Mergers and Acquisitions 529
Chapter 16: Leasing 571
PART 7: LONG–TERM FINANCING 599
Chapter 17: Investment Banking and Securities Law 601
Chapter 18: Debt Instruments 631
Chapter 19: Equity and Hybrid Instruments 659
Chapter 20: Cost of Capital 693
PART 8: FINANCIAL POLICIES 739
Chapter 21: Capital Structure Decisions 741
Chapter 22: Dividend Policy 785
PART 9: WORKING CAPITAL MANAGEMENT 817
Chapter 23: Working Capital Management: General Issues 819
Chapter 24: Working Capital Management: Current Assets and Current Liabilities 843
Appendix 1 869
Index 871
