This is a great book about the theory and practice of corporate finance. Financial managers should master the practical aspect of corporate finance. Managers use their experience to cope with problems. They are also able to respond effectively to changes. Therefore managers must understand why companies and financial managers behave the way they do. This book shows how to use financial theory to solve practical problems, and also to illuminate the facts and institutional material that students of corporate finance must absorb. Financial terms and symbols are used extensively: the symbol for a dividend payment is DIV; the symbol for a percentage of rate of return is r. New in this edition is "Analyzing Corporate Performance," and two new chapters on financial planning and financial ratio analysis. The chapters on leasing and on interactions of financing and investment decisions received special attention.