Description
Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis Teaching Fellow at the NYU Stern School of Business, has delivered the newest edition of Applied Corporate Finance. Readable in style, this text provides the practical and succinct advice that students and practitioners need, rather than a sole concentration on debate theory, assumptions or models.
Like no other text of its kind, Applied Corporate Finance, 3rd Edition applies corporate finance to real companies. It now contains five real-world core companies to study and follow. Business decisions are classified for students into three groups: investment, financing, and dividend decisions. Perfected suited for corporate finance and equity valuation courses in MBA programs!
Features
Text treats students as future practitioners, encourages active learning through live cases and concept questions. These reinforce the author's belief that there is no substitute for actually trying things out to bring home both the strengths and weaknesses of corporate finance.
Real Data, Real Time. This text uses links to the internet to help students gather company information; data sets are available on the web to use for supporting exercises; spreadsheets are available for further analysis of firms referenced in the book.
Emphasizes the principles of corporate finance and their universality across markets, different types of firms and different types of decisions. This is accomplished by using examples from big firms, U.S. firms, foreign firms, private firms and public firms.
Classification of all decisions made by any business into three groups—decisions on where to invest the resources or funds that the business has raised, either internally or externally (the investment decision), decisions on where and how to raise funds to finance these investments (the financing decision) and decisions on how much and in what form to return funds back to the owners (dividend decision).
Case studies at the end of each chapter to reinforce the framework for applying the book’s theories to a real company.
New to this Edition
New developments in the text’s core companies—Disney, US entertainment company; Aracruz, Brazilian paper and pulp companies; Deutsche Bank, European bank; and Bookscape, independent NYC bookstore.
New addition of a fifth international company—Tata Chemicals, an Indian manufacturing firm—with a detailed, current study of this Asian company and how it reflects the larger pattern of a family group company now common in Asia and Latin America.
New examination of the banking crisis and how it will alter the way banks operate in the future.
Updated discussions of risk-free rates and risk premiums to reflect the crisis of 2008 and what we have learned from that crisis.
More online access to the live project study portion, reflecting the greater access to public information since the last edition.
New and improved resources, including a new online glossary now available with the text.
Table of Contents
Chapter 1. The Foundations.
Chapter 2. The Objective in Decision Making.
Chapter 3. The Basics of Risk.
Chapter 4. Risk Measurement and Hurdle Rates.
Chapter 5. Measuring Return on Investment.
Chapter 6. Project Interactions, Side Costs and Side Benefits.
Chapter 7. Capital Structure: Overview of the Financing Decision.
Chapter 8. Capital Structure: The Optimal Financing Mix.
Chapter 9. Capital Structure: The Financing Details.
Chapter 10. Dividend Policy.
Chapter 11. Analyzing Cash Returned to Stockholders.
Chapter 12: Valuation.