Ross et al.: Fundamentals
of Corporate Finance, Sixth
Edition, Alternate EditionVIII. Topics in Corporate
Finance- International Corporate
Finance
© The McGraw−Hill^773
Companies, 2002TOPICS IN CORPORATE FINANCE
PART EIGHT
CHAPTER 22 International Corporate Finance This chapter considers financial management
issues that arise for firms with significant foreign operations. The most important new financial factor is
exchange rates, and this chapter discusses various ways of dealing with foreign exchange in making
financial decisions.
CHAPTER 23 Risk Management: An Introduction to Financial Engineering Corporations
must cope with fluctuations in interest rates, commodity prices, and exchange rates. This chapter
discusses how they do it, with particular attention paid to financial instruments such as futures
contracts, options, and swap agreements.
CHAPTER 24 Option Valuation In the first part of the chapter, the famous put-call parity
condition is developed, followed by the even more famous Black-Scholes option pricing formula. Option
“greeks” are discussed. The chapter concludes with a broad range of corporate finance applications of
option pricing.
CHAPTER 25 Mergers and Acquisitions This chapter describes the corporate finance of
mergers and acquisitions. It shows that the acquisition of one firm by another is essentially a capital
budgeting decision, and the NPV framework still applies. Tax, legal, and accounting aspects of mergers
are discussed along with more recent developments in areas such as takeover defenses.
CHAPTER 26 Leasing Leasing is an important source of financing for companies of all sizes, and
leasing introduces new possibilities for acquiring assets. This chapter considers the circumstances under
which leasing makes sense and discusses other important financial management implications of leasing.
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