The theories used in this book are pre-Modigliani–Miller Theorem, Modigliani–Miller Theorem, Capital Asset Pricing Model and Arbitrage Pricing Theory, and Option Pricing Theory. The interrelationships among these theories are carefully analyzed. Meaningful real-world examples of using these theories are discussed step-by-step, with relevant data and methodology. Alternative planning and forecasting models are also used to show how the interdisciplinary approach is helpful in making meaningful financial management decisions.

Contents:

• Information and Methodology for Financial Analysis:
• Accounting Information, Regression Analysis, and Financial Management
• Discriminant Analysis and Factor Analysis: Theory and Method
• Credit Risk Analysis
• Alternative Finance Theories and Their Application:
• Risk Estimation and Diversification
• Risk and Return Trade-off Analysis
• Option Pricing Theory and Firm Valuation
• Capital Budgeting and Leasing Decisions:
• Alternative Cost of Capital Analysis and Estimation
• Capital Budgeting Under Certainty
• Capital Budgeting Under Uncertainty
• Corporate Policies and Their Interrelationships:
• Mergers: Theory and Evidence
• Dividend Policy and Empirical Evidence
• Interaction of Financing, Investment, and Dividend Policies
• Short-term Financial Decisions:
• Short-term Financial Analysis and Planning
• Credit Management
• Cash, Marketable Securities, and Inventory Management
• Financial Planning and Forecasting:
• Long-range Financial Planning: A Linear-programming Modeling Approach
• Time-Series: Analysis, Model, and Forecasting
• An Overview:
• Financial Analysis and Planning: An Overview
• and other papers