Finance

By providing a solid theoretical basis, this book introduces modern finance to readers, including students in science and technology, who already have a good foundation in quantitative skills. It combines the classical, decision-oriented approach and the traditional organization of corporate finance books with a quantitative approach that is particularly well suited to students with backgrounds in engineering and the natural sciences. This combination makes finance much more transparent and accessible than the definition-theorem-proof pattern that is common in mathematics and financial economics. The book's main emphasis is on investments in real assets and the real options attached to them, but it also includes extensive discussion of topics such as portfolio theory, market efficiency, capital structure and derivatives pricing. Finance equips readers as future managers with the financial literacy necessary either to evaluate investment projects themselves or to engage critically with the analysis of financial managers. Supplementary material is available at www.cambridge.org/wijst. Advance praise: 'An excellent guide to modern finance. Professor van der Wijst provides clear and comprehensive explanations of the major theories in asset pricing, options, and corporate finance and the evidence for and against each. His book is remarkable both for its range and clarity.' Louis Ederington, Michael F. Price Chair in Finance, University of Oklahoma 'A thorough introductory review of modern financial topics. This excellent textbook treats current financial issues by means of mathematical models in an easy-to-read but clear and comprehensive manner.' Otto Loistl, Professor Emeritus, Vienna University of Economics and Business 'I have read with great pleasure this new book by Nico van der Wijst. His style is pedagogical and yet very lively and gives a unified look at the use of quantitative methods in finance. It touches the main concepts of finance both from market and firm perspectives and provides numerous relevant examples. I will recommend this book to Masters and PhD students for its comprehensiveness and rigour.' Marida Bertocchi, University of Bergamo 'Finance must be quantitative and accessible. Under both respects [this] book is impeccable. I envy Nico's students ...' Lorenzo Peccati, Bocconi University 'Over the past few decades there is a growing trend towards the use of quantitative methods for decision making and analysis in the field of finance, as a result of the increasing complexity in the globalized markets. This book covers well selected, major areas in modern finance in a clear and comprehensive way, and succeeds in providing a very balanced presentation of elementary material related to the fundamental theories and concepts, as well as more advanced topics. I really enjoyed this unique approach of the book as it makes the underlying ideas of the finance theory and the increasing sophistication of its quantitative aspects much more accessible to a large audience of students and practitioners.' Constantin Zopounidis, Technical University of Crete and Audencia Group, School of Management1. Introduction; 2. Fundamental concepts and techniques; 3. Modern portfolio theory; 4. Market efficiency; 5. Capital structure and dividends; 6. Valuing levered projects; 7. Option pricing in discrete time; 8. Option pricing in continuous time; 9. Real options analysis; 10. Selected option applications; 11. Hedging; 12. Agency problems and governance; Solutions to exercises; Glossary; Index.