Foreword. Acknowledgments. Introduction. Parentage. Benefits. Conventional Wisdom. The Texts. Chapter 1.
Corporate Governance. 1. Introduction. 2. Corporate Governance: Objectives And Guiding Principles. 3. Forms Of Business And Conflicts Of Interest. 3.
1 Sole Proprietorships. 3.2 Partnerships. 3.3 Corporations. 4. Specific Sources Of Conflict: Agency Relationships. 4.
1 Manager-Shareholder Conflicts. 4.2 Director-Shareholder Conflicts. 5. Corporate Governance Evaluation. 5.1 The Board of Directors. 5.
2 Examples of Codes of Corporate Governance. 6. Environmental, Social, And Governance. 7. Valuation Implications Of Corporate Governance. Chapter 2. Capital Budgeting. 1.
Introduction. 2. The Capital Budgeting Process. 3. Basic Principles Of Capital Budgeting. 4. Investment Decision Criteria. 4.
1 Net Present Value. 4.2 Internal Rate of Return. 4.3 Payback Period. 4.4 Discounted Payback Period. 4.
5 Average Accounting Rate of Return. 4.6 Profitability Index. 4.7 NPV Profile. 4.8 Ranking Conflicts between NPV and IRR. 4.
9 The Multiple IRR Problem and the No IRR Problem. 4.10 Popularity and Usage of the Capital Budgeting Methods. 5. Cash Flow Projections. 5.1 Table Format with Cash Flows Collected by Year. 5.
2 Table Format with Cash Flows Collected by Type 5.3 Equation Format for Organizing Cash Flows. 6. More On Cash Flow Projections. 6.1 Straight-Line and Accelerated Depreciation Methods. 6.2 Cash Flows for a Replacement Project.
6.3 Spreadsheet Modeling. 6.4 Effects of Inflation on Capital Budgeting Analysis. 7. Project Analysis And Evaluation. 7.1 Mutually Exclusive Projects with Unequal Lives.
7.2 Capital Rationing. 7.3 Risk Analysis of Capital Investments-Stand-Alone Methods. 7.4 Risk Analysis of Capital Investments-Market Risk Methods. 7.5 Real Options.
7.6 Common Capital Budgeting Pitfalls. 8. Other Income Measures And Valuation Models. 8.1 The Basic Capital Budgeting Model 8.2 Economic and Accounting Income 8.3 Economic Profit, Residual Income, and Claims Valuation 9.
Summary. Chapter 3. Cost Of Capital. 1. Introduction. 2. Cost Of Capital. 2.
1 Taxes and the Cost of Capital. 2.2 Weights of the Weighted Average. 2.3 Applying the Cost of Capital to Capital Budgeting and Security Valuation. 3. Costs Of The Different Sources Of Capital. 3.
1 Cost of Debt. 3.2 Cost of Preferred Stock. 3.3 Cost of Common Equity. 4. Topics In Cost Of Capital Estimation. 4.
1 Estimating Beta and Determining a Project Beta. 4.2 Country Risk. 4.3 Marginal Cost of Capital Schedule. 4.4 Flotation Costs. 4.
5 What Do CFOs Do? Chapter 4. Capital Structure And Leverage. 1. Introduction. 2. Leverage. 3. Business Risk And Financial Risk.
3.1 Business Risk and Its Components. 3.2 Sales Risk. 3.3 Operating Risk. 3.4 Financial Risk.
3.5 Total Leverage. 3.6 Breakeven Rates and Expected Return. 3.7 The Risks of Creditors and Owners. 4. The Capital Structure Decision.
4.1 Proposition I without Taxes: Capital Structure Irrelevance. 4.3 Taxes, the Cost of Capital, and the Value of the Company. 4.4 Costs of Financial Distress. 4.5 Agency Costs.
4.6 Costs of Asymmetric Information. 4.7 The Optimal Capital Structure According to the Static Trade-Off Theory. 5. Practical Issues In Capital Structure Policy. 5.1 Debt Ratings.
5.2 Evaluating Capital Structure Policy. 5.3 Leverage in an International Setting. Chapter 5. Dividends And Dividend Policy. 1. I.