Throughout the book we emphasize intuition over rigorous theory in explaining difficult concepts. For example, in developing the concept of portfolio risk we rely on an entirely intuitive approach using real data to introduce the notions of systematic and unsystematic risk. We forsake theoretical and quantitative rigor in favor of a more intuitive approach that students can easily relate to. However, where necessary we do emphasize the quantitative aspects of financial problem solving, such as in time value of money problems, securities valuation, and capital budgeting analysis. In developing the quantitative aspects of financial problem solving, we are careful to highlight the application aspects (as opposed to the derivation) of the models used in financial decision making.
Part 1 Introduction
Part 2 Determinants of Valuation
Part 3 The Capital Investment Decision
Part 4 Capital Structure And Dividend Policy
Part 5 Financial Planning, Working Capital Management, And International Finance