New to This Edition

　　1.Detailed attention to readability so the concepts are accessible to all students.

　　2.Additional coverage of private equity.(Chapter 3)

　　3.Information on the collapse of Long-Term Capital Management and risks associated with arbitrage.

　　4.Expanded discussion of covered interest rate parity.(Chapter 8)

　　5.New Chapter 9 provides the key ingredients of valuation.

　　6.In-depth discussion of the equivalent annual cost approach.(Chapter 10)

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PART I: FINANCIAL MARKETS AND FINANCIAL INSTRUMENTS

Ch 1 Raising Capital

Ch 2 Debt Finanacing

Ch 3 Equity Financing



PART II: VALUING FINANCIAL ASSETS

Ch 4 Portfolio Tools

Ch 5 Mean-Variance Analysis and the Capital Asset Pricing Model

Ch 6 Factor Models and the Arbitrage Pricing Theory

Ch 7 Pricing Derivatives

Ch 8 Options

Ch 9 Discounting and Valuation



PART III: VALUING REAL ASSETS

Ch10 Investing in Risk-Free Projects

Ch11 Investing in Risky Projects

Ch12 Allocating Capital and Corporate Strategy

Ch13 Corporate Taxes and the Impact of Financing on Real Asset Valuation



PART IV: CAPITAL FINANCIAL STRUCTURE

Ch14 How Taxes Affect Financing Choices

Ch15 How Taxes Affect Dividends and Share Repurchases

Ch16 Bankruptcy Costs and Debt Holder─Equity Holder Conflicts

Ch17 Capital Structure and Corporate Strategy



PART V: INCENTIVES,INFORMATION,AND CORPORATE CONTROL

Ch18 How Managerial Incentives Affect Financial Decisions

Ch19 The Informstion Conveyed by Financial Decisions

Ch20 Mergers and Acquisitions



PART VI: RISK MANAGEMENT

Ch21 Risk Management and Corporate Strategy

Ch22 The Practice of Hedging

Ch23 Interest Rate Risk Management

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