The authors present theory as a way of helping prospective financial managers to deal with practical problems, introducing discussions on hot topics and controversies in the discipline, and contrasting current financial models. Value, Finance and the Financial Manager, How to Calculate Present Values, The Value of Common Stocks, Risk, Risk and Return, Practical Problems in Capital Budgeting, Making Sure Managers Maximize NPV, Financing Decisions and Market Efficiency, An Overview of Corporate Financing, How Corporations Issue Securities, Dividend Policy and Capital Structure, The Dividend Controversy, Financing and Valuation, Options, Spotting and Valuing Options, Real Options, Debt Financing, Valuing Debt, Leasing, Risk Management, Managing Risk, Managing International Risks, Financial Planning and Sort-Term Financial Management, Financial Analysis and Planning, Credit and Cash Management, Mergers and Corporate Control and Governance, Conclusions.