Corporate Finance, Theory and Practice, Second Edition

Finance is concerned with the manner in which individuals and firms allocate resources across assets and over time. The developed body of financial knowledge deals with portfolio decisions of individuals, with investment and financing decisions by firms, and with implication of such behavior for the pricing of capital assets in the marketplace. The aim of the book is to provide a rigorous understanding of how and why firms make their financial decisions the way they do and their impact on shareholder value. The central theme of the book is value-based management, which presupposes that maximizing shareholder value is the governing objective of a firm.