A comprehensive coverage of financial theory with analysis and applications. Students are taught to solve problems and learn how and why companies and management act in the way they do. Controversial issues are covered, and this fifth edition has been updated and basic materials streamlined. There is increased coverage of the procedures for estimating the cost of capital - the discounted cash flow model, capital asset pricing model, and arbitrage pricing model. Estimates are included from a variety of industries such as oil, pharmaceutical and gas and electric, and there is expanded coverage of risk management and techniques and the use and misuse of derivatives. End of chapter quizzes and problems have been updated and increased to test students knowledge and supplement packages have been expanded.