Table of Contents

PART I: FINANCIAL CONCEPTS AND TECHNIQUES.
1. Financial Management and Value Creation: An Overview.
2. The Time Value of Money.
3. Risk and Return.
PART II: ANALYZING BUSINESS PERFORMANCE.
4. Interpreting Financial Statements.
5. Assessing Operational Efficiency and Liquidity.
6. Diagnosing Profitability, Risk, and Growth.
PART III: MAKING INVESTMENT DECISIONS.
7. Using the NPV Rule to Make Value-Creating Investment Decisions.
8. Alternatives to the Net Present Value Rule.
9. Identifying and Estimating a Project’s Cash Flows.
PART IV: MAKING FINANCING DECISIONS.
10. Valuing Bonds and Stocks.
11. Raising Capital and Paying Out Cash.
12. Estimating the Cost of Capital.
13. Designing a Capital Structure.
PART V: MAKING BUSINESS DECISIONS.
14. Valuing and Acquiring a Business.
15. Managing Corporate Risk.
16. Making International Business Decisions.
17. Managing for Value Creation.
Answers to Self-Test Questions.
Glossary.

About the Author

Gabriel Hawawini (Ph.D., New York University) is emeritus professor of finance at INSEAD, where he served as dean and held the Henry Grunfeld Chair in Investment Banking. He taught finance at New York University, Baruch College, Columbia University, and the Wharton School of the University of Pennsylvania where he received the Helen Kardon Moss Anvil Award for Excellence in Teaching. He is the author of 12 books and more than 70 research papers on financial markets and corporate finance. He teaches value-based management seminars around the world and sits on the boards of several companies. Claude Viallet (Ph.D., Northwestern University) was emeritus professor of finance at INSEAD. He was visiting professor of finance at the Kellogg School of Management, Northwestern University. Before joining INSEAD, he worked as a project manager at a major oil company and as chief financial officer of a service company in Paris. Professor Viallet was president of the European Finance Association and published widely in leading academic and professional journals. He also organized, directed, and taught management-development programs in Europe, the United States, Asia and Latin America and provided consulting services to companies around the world.