M. P. Narayanan is professor of finance and chair of the finance department at the University of Michigan Business School. He is the faculty director of the Finance for Non-Financial Managers program and the Finance for Strategic Decision-Making program.Vikram K. Nanda is associate professor of finance at the University of Michigan Business School.

• Series Foreword xiPreface xiii1 Finance and Corporate Strategy 12 The Resource Allocation Decision 133 Cost of Capital 554 Capital Structure and Financing 755 Payout Policy 1136 Mergers and Acquisitions 1377 Divestitures 1798 Risk Management 2119 Performance Evaluation 247Notes 285The Authors 291Index 293

M. P. Narayanan is professor of finance and chair of the finance department at the University of Michigan Business School. He is the faculty director of the Finance for Non-Financial Managers program and the Finance for Strategic Decision-Making program.Vikram K. Nanda is associate professor of finance at the University of Michigan Business School.

• Series Foreword xiPreface xiii1 Finance and Corporate Strategy 12 The Resource Allocation Decision 133 Cost of Capital 554 Capital Structure and Financing 755 Payout Policy 1136 Mergers and Acquisitions 1377 Divestitures 1798 Risk Management 2119 Performance Evaluation 247Notes 285The Authors 291Index 293

M. P. Narayanan is professor of finance and chair of the finance department at the University of Michigan Business School. He is the faculty director of the Finance for Non-Financial Managers program and the Finance for Strategic Decision-Making program.Vikram K. Nanda is associate professor of finance at the University of Michigan Business School.

• Series Foreword xiPreface xiii1 Finance and Corporate Strategy 12 The Resource Allocation Decision 133 Cost of Capital 554 Capital Structure and Financing 755 Payout Policy 1136 Mergers and Acquisitions 1377 Divestitures 1798 Risk Management 2119 Performance Evaluation 247Notes 285The Authors 291Index 293