Financial Theory and Corporate Policy (Paperback)

This classic textbook in the field, now completely revised and updated, provides a bridge between theory and practice. It presents a unified treatment of finance combining theory, empirical evidence and applications. Features* Clear and succinct discussion of current trends and recent contributions to finance literature provides a solid foundation in established finance theory.* Emphasizes applications to help students better understand the uses of Finance theory. Table Of Contents PART I: FINANCIAL THEORY.* Introduction to Capital Markets, Consumption and Investment.* Investment Decisions: The Certainty Case.* Theory of Choice Under Uncertainty: Utility Theory.* State-Preference Theory.* Objects of Choice.* Market Equilibrium: CAPM and APT.* Pricing Contingent Claims: Option Price Theory and Evidence.* Futures Contracts and Markets - Term Structure - Cox, Ingersoll, Ross.* Multiperiod Aspects of Financial Theory - Real Options - Investment.* Efficient Capital Markets: Theory.* Efficient Capital Market: Evidence.* Information Asymmetry: Agency Cost Theory and Signaling. PART II: CORPORATE POLICY.* The Role of the CFO and Performance Measurement.* Valuation and Tax Policy.* Capital Structure.* Dividend Policy.* Applied Issues in Corporate Finance.* External Investment Decisions. International Finance: Theory and Evidence.* Open-Ended Issues for Research.