Overview of valuation -- Forecasting and valuing cash flows -- Project risk analysis -- Estimating a firm's cost of capital -- Estimating required rates of return for projects -- Forecasting financial performance -- Earnings dilution, incentive compensation, and project selection -- Relative...

A widely cited survey of financial executives reported that more than 50% of the surveyed companies used a single, company-wide discount rate to evaluate all investment proposals. The shortcomings of this approach are well known and reported in virtually every introductory finance text. Yet...

James Kingsley, a financial analyst for Progressive Exploration and Development Company, has been asked to join a team that will analyze the possible acquisition of a sizable oil field in southeastern Oklahoma. To prepare for the task Mr. Kingsley constructs a spreadsheet model of the economic...