the wake of fast changing economic landscape—characterized by global
financial crisis, volatile equity and bond markets, rising dominance of
emerging markets and increasing investor activism—the role of
financial managers in an organization has assumed significant
This text aims at educating the students the fundamentals of Corporate Finance, and explains how various theories can be applied for efficient decision making for the financial managers.
The book is conceptualized on practical approach, and explores various topics in an easy and step-by-step approach, backed by numerous examples, self-test exercises and India-centric cases.
The complex financial concepts related to capital structure, risk and return analysis, valuation of financial securities, market efficiency and portfolio management have been explained in a reader-friendly manner to provide a unique learning experience.
The book is intended for the postgraduate students of Management, and practising financial managers.
• The chapters are backed by strong practical experience of in-depth financial analysis of Companies.
• Supplemented with real-life examples and scenarios in a concise and comprehensive presentation.
• India-centric cases to create an interactive class room environment.
• Topics for further research have been included on each major topic as ‘Researchable Issues’.
• Each chapter contains side-boxes to highlight the important points for quick revision.
• Each chapter is incorporated with Review Questions, Practice Exercises and Self-Test Questions to add analytical approach to the subject.
• Revision set and PPT slides provided as web support.
• Solutions Manual for instructors, available on request.
Part I: Introduction To Corporate Finance
1. Objectives, Scope and the Financial Environment
2. Time Value of Money
Part II: Capital Investment Decision
3. Principles of Investment Decision
4. Investment Decision DCF Methods of Appraising Projects
5. Risk Analysis for Investment Decisions
6. Investment Decision: Capital Rationing, Inflation and Real Options
Part III: Risk, Return and Valuation
7. Market Risk and Return
8. Portfolio Theory and Asset Pricing Models
9. Valuation of Bonds
10. Valuation of Shares
Part IV: Financing and Dividend Decision
11. Cost of Capital
12. Theories of Capital Structure
13. Capital Structure Decisions and Leverage Analysis
14. Dividend Payout Policy and Theories
Part V: Financial Ratios and Analysis
15. Financial Ratio and Analysis
Part VI: Working Capital Management
16. Working Capital Management 1: Operating Cycle and Financing Aspects
17. Working Capital Management 2: Inventory, Debtors and Cash Management
Part VII: Non-Profit Organizations
18. Financial Management in Non-Profit Organizations
Table 1: Future Value of $1 at i % for n periods (FVIF)
Table 2: Present Value of $1 at i % for n periods (PVIF)
Table 3: Future Value of an Annuity Interest Factor (FVIFA): $1 per period at i % for n periods
Table 4: Present Value of an Annuity Interest Factor (PVIFA): $1 per period at i % for n periods
Appendix B: Answers to MCQ’s • Appendix C: Answers to Self-Test Questions