Financial Markets and Corporate Strategy: European Edition, 3e

David Hillier is Professor of Finance at the University of Strathclyde, teaches regularly in development programs for executives and has taught courses for a wide variety of professional clients, including the World Bank and the National Health Service in the UK. It is part of the editorial board of several international journals of finance. University of California at Los Angeles, Ph.D. Yale Mark Grinblatt is Professor of Finance at UCLA’s Anderson School, where he currently serves as chair of the Finance area, and where he began his career in 1981. He is also a director on the board of Salomon Swapco, Inc., a consultant to numerous firms, and serves as an associate editor of Journal of Financial and Quantitative Analysis. From 1987 to 1989, Professor Grinblatt was a visiting professor at the Wharton School and while on leave from UCLA in 1989 and 1990, he was a vice-president for Salomon Brothers, Inc., valuing complex derivatives for the fixed income arbitrage trading group in the firm. Professor Grinblatt is a noted teacher at UCLA, having been awarded teacher of the year in 1993 for UCLA’s Fully-Employed MBA Program by a vote of the students. This award was based on his teaching of a course designed around early drafts of this textbook. Professor Grinblatt’s areas of expertise include investments, performance evaluation of fund managers, fixed income markets, corporate finance and derivatives. The Walter W. McAllister Centennial Chair in Financial Services at the University of Texas. He is also a research associate of the National Bureau of Economic Research and a consultant to a number of firms. Professor Titman began his academic career in 1980 at UCLA, where he served as the department chair for the finance group and as the vice chairman of the UCLA management school faculty. He designed executive education programs in corporate financial strategy at UCLA and the Hong Kong University of Science and Technology, based on material developed in this book.

• Part 1: Financial Markets and Financial InstrumentsChapter 1 Raising Capital: The Process and Players Chapter 2Debt Financing Chapter 3Equity Financing Part 2: Valuing Financial AssetsChapter 4Portfolio ToolsChapter 5Mean-Variance Analysis and the Capital Asset Pricing ModelChapter 6Factor Models and the Arbitrage Pricing TheoryChapter 7Pricing DerivativesChapter 8OptionsPart 3: Valuing Real AssetsChapter 9Discounting and ValuationChapter 10Investing in Risk-Free ProjectsChapter 11Investing in Risky ProjectsChapter 12Allocating Capital and Corporate StrategyChapter 13Corporate Taxes and the Impact of Financing on Real Asset ValuationPart 4: Capital StructureChapter 14How Taxes Affect Financing ChoicesChapter 15How Taxes Affect Dividends and Share RepurchasesChapter 16Bankruptcy Costs and Debt Holder–Equity Holder ConflictsChapter 17Capital Structure and Corporate StrategyPart 5: Incentives, information, and corporate controlChapter 18How Managerial Incentives Affect Financial DecisionsChapter 19The Information Conveyed by Financial DecisionsChapter 20Mergers and AcquisitionsPart 6: Risk ManagementChapter 21Risk Management and Corporate StrategyChapter 22The Practice of HedgingChapter 23Interest Rate Risk Management