Financing and Risk Management
belies the notion that
corporate finance texts must be dull. This handbook for practicing professional combines
in-depth finance information and methodology with dynamic and often humorous writing as it
focuses on the many issues professionals face as they take on questions of financing. Its
step-by-step treatment encompasses:
Financial and securities
markets-Types of securities: when and how they are issued and how they are priced
by investors
Dividend policy and capital
structure-How to determine the appropriate mix of securities issued, debt level, and more
Options-Strategies for using
options, warrants, and convertibles plus different models-including Black-Scholes-for
their valuation
Debt financing-Techniques
for managing a company's debt and explanations of the many types of debt that can be
issued
Risk management-Methods for
hedging against today's wide array of business hazards, both domestic and international
Financial planning-Ways to
measure and manage a firm's leverage, liquidity, efficiency, profitability, and market
valuation
Short-term
financing-Channels for short-term borrowing and lending plus descriptions of programs for
credit and cash management
Financing and Risk Management
also differs from the majority of finance tomes by consistently reflecting on the human
side of the equation. What must you do to strike a balance between appeasing investors
with dividends and retaining earnings for expansion, and what if the needs of your firm
change? How can you generate global profits while assessing and hedging your firm's
foreign currency exposure? What are the questions you should ask when determining which of
two (or more) available vehicles your firm should adopt for efficient financing?
Corporate financial
management is at its core a fluid and constantly challenging area. Financing and Risk
Management takes you inside the fundamental question of how a corporation generates
capital. It introduces you to the subject's often-conflicting objectives and outlines ways
in which you can satisfy the greatest number of those objectives, while ensuring that all
areas of a corporation operate-and conflicts are resolved-under one consistent set of
financial rules.
Richard A. Breaiey, Ph.D.,
and Stewart C. Myers, Ph.D., are coauthors of the perpetually best-selling textbook
Principles of Corporate Finance, and two of the most respected and accomplished names in
education and corporate finance. Dr. Breaiey has taught at the London Business School for
more than thirty years and is former president of the European Finance Association. Dr.
Myers is the Gordon Y. Billard Professor of Finance at MIT's Sloan School of Management
and is past president of the American Finance Association.
472 pages