Foundations Of Finance -- Vignette: Problems at Gillette -- Goals and Functions of Finance -- Creation of Value -- Investment Decision -- Financing Decision -- Dividend/Share Repurchase Decision -- Concepts in Valuation -- The Time Value of Money -- Present Values -- Internal Rate of Return or Yield -- Bond Returns -- Return from a Stock Investment -- Dividend Discount Models -- Measuring Risk: Standard Deviation -- Market Risk and Returns -- Efficient Financial Markets -- Security Portfolios -- Multiple Security Portfolio Analysis and Selection -- Capital Asset Pricing Model -- Expected Return for Individual Security -- Certain Issues with the CAPM -- Multivariable and Factor Valuation -- Extended CAPM -- Factor Models in General -- Arbitrage Pricing Theory -- Option Valuation -- Expiration Date Value of an Option -- Valuation with One Period to Expiration General Consideration -- Binomial Option Pricing of a Hedged Position -- The Black-Scholes Option Model -- American Options -- Debt and Other Options -- Put-Call Parity -- Investment In Assets And Required Returns -- Case: Fazio Pump Corporation -- Principles of Capital Investment -- Administrative Framework -- Methods for Evaluation -- NPV versus IRR -- Depreciation and Other Refinements in Cash-Flow Information -- What Happens When Capital Is Rationed? -- Inflation and Capital Budgeting -- Information to Analyze an Acquisition -- Multiple Internal Rates of Return -- Risk and Real Options in Capital Budgeting -- Quantifying Risk and its Appraisal.