Advanced Corporate Finance

The book discusses the theoretical and practical tools essential to Chief Financial Officer (CFO). It introduces advanced valuation techniques and provides a rigorous understanding of what creates value and why. Organized into seven parts, Part I of the text provides a rationale for value-based management as the overriding objective of the firm besides highlighting how CFO can increase the value of the firm by fine-tuning financial policies. Part II introduces real options, a new methodology for valuing corporate investments. Part III explores old and new financial instruments, and stresses the objective and methods of active risk management. Part IV examines the structuring, financing, and valuation of large-scale, standalone projects. Part V deals with agency problems, and how finance managers can address these problems using incentives. Part VI reviews some of the most popular restructuring methods and presents empirical evidence on such issues. The concluding part, Part VII, tries to integrate the contents of the book since good corporate governance is essential for effective implementation of policies. Besides students, practising managers and finance professionals who want to upgrade their knowledge on corporate finance will find the text extremely useful.