Corporate Finance: Theory and PracticeA text with a thoroughly integrated applications orientation revolving around the philosophy that companies need to know how to finance organizations in order to reach optimal capital structure. Recognizing that every investment decision involves choosing the right amount of debt and equity, the text suggests readers look at data and ask, "What is relevant? Why is this detail important? How does it answer the question?" |
Common terms and phrases
after-tax annuity approach assume assumptions average beta Boeing bondholders book value borrowing capital expenditures CAPM changes Chapter computed Concept Check consider corporate finance cost of capital cost of debt cost of equity decision depreciation discount rate dividend policy dividend yield earnings EBIT effect equity investors estimated exchange rate expected return factors FCFE Figure financial markets firm value firm's flows to equity free cash flows funds higher Home Depot increase inflation interest rate inventory investment analysis issue lease leverage liability long-term managers market value maximizing measure million net present value objective function operating cash flows operating income optimal debt ratio outstanding payments payout ratio premium present value pricing model profits publicly traded firms rate of return regression repurchase return on equity revenues share stock price stockholder wealth Table takeovers tax benefits tax rate value of equity variables variance