About the Book :
Aswath Damodaran is nationally recognized for his teaching approach, using theory and the models that flow from it to understand, analyze and solve problems. He treats corporate finance as a living discipline by making it much more applied than other textbooks. Throughout the text, real companies and real data are used in examples and exercises.
About the Author :
Aswath Damodaran is a professor of finance at the Stern School of Business at New York University, and teaches the corporate finance and equity valuation courses in the MBA program. He received his MBA and Ph.D. from the University of California at Los Angeles. His research interest lies in valuation and applied corporate finance. He has published articles in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies, and has written two books on equity valuation (Damodaran on Valuation and Investment Valuation) and two on corporate finance (Corporate Finance: Theory and Practice and Applied Corporate Finance: A User's Manual). He has co-edited a book on investment management with Peter Bernstein (Investment Management) and is working on a book on investment philosophies.He was a visiting lecturer at the University of California, Berkeley, from 1984 to 1986, where he received the Earl Cheit Outstanding Teaching Award in 1985. He has been at NYU since 1986, received the Stern School of Business Excellence in Teaching Award (awarded by the graduating class) in 1988, 1991, 1992, and 1999 and was the youngest winner of the University-wide Distinguished Teaching Award (in 1990). He was profiled in Business Week as one of the top twelve business school professors in the United States in 1994.
Interesting Facts :
"Real Companies, Real Data." Three companies, Boeing, The Home Depot, and Infosoft, are used as examples throughout the text. By following the same three companies throughout, readers gain the necessary background to understand the financial principles as they are presented"Real Companies, Real Time." These end of chapter exercises present readers with a guiding set of activities and questions for them to apply to a company of their choosing. This "live case study" approach allows the reader to study a company of interest to them while applying chapter concepts to a real companyWith an emphasis on framework, Damodaran uses a "big picture" approach to insure that readers do not get intimidated by the detail of the formulas and theoretical models
PrefaceA Reader's GuidePart I Introduction To Corporate FinanceIntroduction to Corporate FinanceThe Objective in Corporate FinanceThe Time Value of MoneyUnderstanding Financial StatementsValue and Price: An IntroductionThe Basics of RiskPart II Investment Analysis Estimating Hurdle Rates for FirmsEstimating Hurdle Rates for ProjectsEstimating Earnings and Cash Flows on ProjectsInvestment Decision RulesInvestment Analysis with Inflation and Exchange Rate RiskProject Interactions, Side Benefits, and Side CostsInvestments in Noncash Working CapitalInvestments in Cash and Marketable SecuritiesInvestment Returns and Corporate StrategyPart III The Financing DecisionAn Overview of Financing ChoicesThe Financing ProcessThe Financing Mix: Tradeoffs on TheoryThe Optimal Financing MixThe Financing Mix and ChoicesPart IV The Dividend DecisionDividend PolicyAnalyzing Cash Returned to StockholdersBeyond Cash Dividends: Buybacks, Spinoffs, and DivestituresPart V ValuationValuation: Principles and PracticeValue Enhancement: Tools and TechniquesAcquisitions and TakeoversPart VI The Link Between Valuation And Corporate Finance DecisionsOption Applications in Corporate FinanceBack to First PrinciplesSolutions to Odd-Numbered Questions and ProblemsIndex