Glen Arnold

Part	Ch.	Title	Page
1. Introduction			1
	1	The financial world	2
2. The investment decision			49
	2	Project appraisal: net present value and internal rate of return	50
	3	Project appraisal: cash flow and applications	89
	4	The decision-making process for investment appraisal	125
	5	Project appraisal: capital rationing, taxation and inflation	151
3. Risk and return			173
	6	Risk and project appraisal	174
	7	Portfolio theory	222
	8	The Capital Asset Pricing Model and multi-factor models	268
4. Sources of finance			325
	9	Stock markets	326
	10	Raising equity capital	363
	11	Long-term debt finance	419
	12	Short- and medium-term finance, treasury and working capital management	471
	13	Stock market efficiency	539
5. Corporate value			607
	14	Value-based management	608
	15	Value-creation metrics	654
	16	The cost of capital	700
	17	Valuing shares	734
	18	Capital structure	783
	19	Dividend policy	836
	20	Mergers	864
6. Managing risk			923
	21	Derivatives	924
	22	Managing exchange-rate risk	972

App.	Title	Page
I	Future value of £1 at compound interest	A:2
II	Present value of £1 at compound interest	A:3
III	Present value of an annuity of £1 at compound interest	A:4
IV	Future value of an annuity of £1 at compound interest	A:5
V	Areas under the standardised normal distribution	A:6
VI	Answers to the mathematical tools exercises in Chapter 2, Appendix 2.1	A:7

Glossary — G:1 Bibliography — B:1 Index — I:1

Contents