Applied Corporate Finance


by Aswath Damodaran

Publisher: Wiley
ISBN: 1118808932


Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis, Teaching Fellow at the NYU Stern School of Business, has delivered the newest edition of Applied Corporate Finance.  This readable text provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models.

Like no other text of its kind, Applied Corporate Finance, 4th Edition applies corporate finance to real companies. It now contains six real-world core companies to study and follow.  Business decisions are classified for students into three groups:  investment, financing, and dividend decisions.


Table of contents

  • Preface
  • Acknowledgements
  • 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

New to This Edition

Six Firms Analyzed We will look at every aspect of finance through the eyes of six companies, sometimes to draw contrasts between the companies, but more often to show how much they share in common. The six companies are:

  • 1. Disney: Disney is a publicly traded firm with wide holdings in entertainment and media.
  • 2. Bookscape Books: This company is a privately owned independent bookstore in New York City.
  • 3. Vale: Vale is a global metals and mining company that was founded and is still incorporated in Brazil.
  • 4. Baidu: Baidu is a web services company built around a Chinese-language search engine.
  • 5. Deutsche Bank: Deutsche Bank is the leading commercial bank in Germany.
  • 6. Tata Motors: Tata Motors is an automobile company and is part of one of the largest Indian family group companies, the Tata Group.

Concept Questions introduced at the end of each chapter to emphasize active learning

Global Perspective is taken when discussing all featured companies, regardless of where they are incorporated and traded

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