Corporate Finance

Dr. Michael C. Ehrhardt is a Professor Emeritus and current faculty member in two Executive MBA programs at the University of Tennessee. He received a B.S. in Civil Engineering and a B.A. in Economics at Swarthmore College. After working several years as an engineer, he earned his M.S. in Operations Research and Ph.D. in Finance from the Georgia Institute of Technology. Dr. Ehrhardt has taught extensively at the undergraduate, master's and doctoral levels in the areas of investments, corporate finance and capital markets. He has directed and served on numerous dissertation committees. Dr. Ehrhardt teaches in executive education programs and consults in the areas of corporate valuation, value-based compensation plans, financial aspects of supply chain management and the cost of capital. His honors include the Allen G. Keally Outstanding Teacher Award, the Tennessee Organization of MBA Students Outstanding Faculty Award, the College of Business Administration Research & Teaching Award and the John B. Ross Outstanding Teaching Award in the College of Business. An author and co-author of several books addressing various areas of finance, Dr. Ehrhardt focuses much of his research on corporate valuation and asset pricing models, including pricing models for interest-rate sensitive instruments. His work has been published in numerous journals, including THE JOURNAL OF FINANCE, JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, FINANCIAL MANAGEMENT, THE FINANCIAL REVIEW, THE JOURNAL OF FINANCIAL RESEARCH and THE JOURNAL OF BANKING AND FINANCE. Dr. Eugene F. Brigham is graduate research professor emeritus at the University of Florida, where he has taught since 1971. He received his M.B.A. and Ph.D. from the University of California-Berkeley and his undergraduate degree from the University of North Carolina. Prior to joining the University of Florida, Dr. Brigham held teaching positions at the University of Connecticut, the University of Wisconsin and the University of California-Los Angeles. A former president of the Financial Management Association, he has written many journal articles on the cost of capital, capital structure and other aspects of financial management. He has authored or co-authored 10 textbooks on managerial finance and managerial economics that are used at more than 1,000 universities in the United States and have been translated into 11 languages worldwide. In addition to his academic writing, Dr. Brigham continues to teach, consult and complete research. He has served as a consultant to many corporations and government agencies, including the Federal Reserve Board, the Federal Home Loan Bank Board, the U.S. Office of Telecommunications Policy and the RAND Corp. He has also testified as an expert witness in numerous electric, gas and telephone rate cases at both federal and state levels. Dr. Brigham spends his spare time on the golf course, enjoying time with his family and dogs and tackling outdoor adventure activities, such as biking through Alaska.

PART I: FUNDAMENTAL CONCEPTS OF CORPORATE FINANCE.
1. An Overview of Financial Management and the Financial Environment.
Web Extensions 1A: An Overview of Derivatives; 1B: A Closer Look at the Stock Markets
2. Financial Statements, Cash Flow, and Taxes.
Web Extensions 2A: The Federal Income Tax System for Individuals.
3. Analysis of Financial Statements.
PART II: FIXED INCOME SECURITIES.
4. Time Value of Money.
Web Extensions 4A: The Tabular Approach; 4B: Derivation of Annuity Formulas; 4C: Continuous Compounding.
5. Bonds, Bond Valuation, and Interest Rates.
Web Extensions 5A: A Closer Look at Zero Coupon Bonds; 5B: A Closer Look at TIPS: Treasury Inflation Protected Securities; 5C: A Closer Look at Bond Risk: Duration; 5D: The Pure Expectations Theory and Estimation of Forward Rates.
PART III: STOCKS AND OPTIONS.
6. Risk, Return, and the Capital Asset Pricing Model.
Web Extensions 6A: Continuous Probability Distributions; 6B: Estimating Beta with a Financial Calculator.
7. Stocks, Stock Valuation, and Stock Market Equilibrium.
Web Extensions 7A: Derivation of Valuation Equations.
8. Financial Options and Applications in Corporate Finance.
PART IV: PROJECTS AND THEIR VALUATION.
9. The Cost of Capital.
Web Extensions 9A: The Required Return Assuming Nonconstant Dividends and Stock Repurchases.
10. The Basics of Capital Budgeting: Evaluating Cash Flows.
Web Extensions 10A: The Accounting Rate of Return (ARR).
11. Cash Flow Estimation and Risk Analysis.
Web Extensions 11A: Certainty Equivalents and Risk-Adjusted Discount Rates.
PART V: CORPORATE VALUATION AND GOVERNANCE.
12. Financial Planning and Forecasting Financial Statements.
Web Extensions 12A: Advanced Techniques for Forecasting Financial Statements Accounts.
13. Corporate Valuation, Value-Based Management and Corporate Governance.
PART VI: CASH DISTRIBUTIONS AND CAPITAL STRUCTURE.
14. Distributions to Shareholders: Dividends and Repurchases.
15. Capital Structure Decisions.
Web Extensions 15A: Degree of Leverage.
PART VII: MANAGING GLOBAL OPERATIONS.
16. Working Capital Management.
Web Extensions 16A: Secured Short-Term Financing.
17. Multinational Financial Management.
APPENDIXES.
A. Solutions to Self-Test Problems.
B. Answers to End-of-Chapter Problems.
C. Selected Equations and Data.
D. Values of the Areas under the Standard Normal Distribution Function.
Glossary.
Name Index.
Subject Index.