Applied Corporate Finance


Readable and usable in style and valuable in approach, Applied Corporate Finance provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models. It applies corporate finance to real companies. It contains six real-world core companies to study and follow. Perfected suited for MBA programs’ corporate finance and equity valuation courses, all business decisions are classified for students into three groups: investment, financing, and dividend decisions.

  • The book provides coverage on corporate finance, the objective of decision making, the basics of risk, risk measurement and hurdle rates in practice, measuring return of investments, project interactions, side costs and side benefits, capital structure, and dividend policy.

  • Applied Corporate Finance presents a valuable insight on the topics, and offers explanations on how it is in practice and why it is the way it is.

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 in Practice

  • Chapter 5: Measuring Return on Investments

  • Chapter 6: Project Interactions, Side Costs, and Side Benefits

  • Chapter 7: Capital Structure: Overview of the Financing Decision

  • Chapter 8: Capital Structure: The Optimal Financial Mix

  • Chapter 9: Capital Structure: The Financing Details

  • Chapter 10: Dividend Policy

  • Chapter 11: Analyzing Cash Returned to Stockholders

  • Chapter 12: Valuation: Principles and Practice

Appendix 1

Appendix 2

Appendix 3

Appendix 4