Summary

This book was written originally to fulfill a need that conventional corporate finance books were not filling - to provide practical and succinct advice on how to do corporate finance rather than debate theory. It was intended for both practitioners who have little patience for extended discourses on models and assumptions and for instructors/students who wanted to focus on applying corporate finance to real companies.

The book tells a story, which essentially summarizes the corporate finance view of the world. It classifies all decisions made by any business into three groups-decisions on where to invest the resources or funds that the business has raised, either internally or externally (the investment decision), decisions on where and how to raise funds to finance these investments (the financing decision) and decisions on how much and in what form to return funds back to the owners (dividend decision).