Corporate Finance & Investment,
Decisions & Strategies
5th Edition

By Richard Pike & Bill Neale
Financial Times / Prentice Hall
January 2006
ISBN: 0273695614
784 Pages, Illustrated, 7 ¾” x 10 ½”
$115.00 Paper Original

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This popular text takes a practical approach to corporate finance, applying key concepts and techniques to a broad range of contemporary issues in finance. Examining financial issues from a managerial stand point, the authors demonstrate the role finance has to play in explaining and shaping business development rather than concentrating on quantitative aspects.

This book is suitable for second and third year undergraduate students of business studies, accounting, finance and economics. It is particularly valuable for those studying an MBA or MSc in Business.

“It is a thorough and well written book with good examples” Hugh Metcalf, University of Newcastle upon Tyne, UK
“I immediately liked it” Ivar Bredesen, Oslo University College, Norway
“This is a very good, reliable, easy to read text book” Anne Butchers, University of Warwick, UK

Contents
List of figures
List of tables
Preface
Acknowledgments
Guided Tour

PART 1 A FRAMEWORK FOR FINANCIAL DECISIONS
1 An overview of financial decisions
2 The financial environment
3 Present values and financial arithmetic
4 Valuation of assets, shares and companies

PART 2 INVESTMENT DECISIONS AND STRATEGIES
5 Investment appraisal methods
6 Project appraisal – applications
7 Investment strategy and process

PART 3 INVESTMENT RISK AND RETURN
8 Analysing investment risk
9 Relationships between investments: portfolio theory
10 Setting The Risk Premium: The Capital Asset Pricing Model
11 The required rate of return on investment and shareholder value analysis
12 Identifying and valuing options

PART 4 SHORT-TERM FINANCING AND POLICIES
13 Treasury management and working capital policy
14 Short-term asset management
15 Short- and medium-term finance

PART 5 STRATEGIC FINANCIAL DECISIONS
16 Long-term finance
17 Returning value to shareholders: the dividend decision
18 Capital structure and the required return
19 Does capital structure really matter?
20 Acquisitions and restructuring

PART 6 INTERNATIONAL FINANCE
21 Managing currency risk
22 Foreign investment decisions

23 Review and frontiers of finance

Appendix A Solutions to self-assessment activities
Appendix B Solutions to selected questions
Appendix C Present value interest factor (PVIF)
Appendix D Present value interest factor for an annuity (PVIFA)

Features
• A strategic focus relating finance to management issues, setting the subject in the context of corporate decision-making.
• Reliable and easy to read, the text’s clear and accessible style presents maths using worked examples and diagrams to aid understanding and highlight application.
• Practical, problem-solving approach blends theory and practice through a wealth of real-world examples, mini-case studies and cameos to help students to learn how to apply their knowledge.
• Carefully thought out features throughout the text to encourage learning and self-assessment.
• Recommended by professional bodies such as CIMA and ACCA.

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