ISBN10: 0471330426, ISBN13: 9780471330424, [publisher: Wiley] Hardcover 592 pages. Convert Theory into Solutions: A Corporate Finance Reality Check This hands-on guide to corporate finance focuses o n converting the theory and models in corporate finance into tool s that can be used to analyze, under stand and help any business. Applied Corporate Finance provides a user's perspective to corpo rate finance, by posing the three major questions that every busi ness has to answer, and then providing the tools and the analytic al techniques needed to answer them. The three questions are- * W here do we invest our resources? (The Investment Decision) The fi rst part of the book looks at how to assess risk and develop a ri sk profile for a firm, convert this risk profile into a hurdle ra te, and develops the basic rules that need to be followed in esti mating the returns on any investment. * How should we fund these investments? (The Financing Decision) Firms generally can use deb t, equity or some combination of the two to fund projects. This p art of the book examines the relationship between this choice and the hurdle rate to be used in analyzing projects, and presents w ays in which the financing decision can be used to maximize firm value. It also sets up a framework for picking the right kind of security for any firm. * How much cash can and should we return t o the owners? (The Dividend Decision) The third part of the book establishes a process that can be used ...