Finance for Strategic Decision Making demystifies and clarifies for non-financial executives the basics of financial analysis. It shows how they can make important financial decisions that can critically enhance their institution s ability to respond to competitive challenges, undertake new projects, overcome financial setbacks, and most importantly, create shareholder value. Written by M. P. Narayanan and Vikram K. Nanda two of the country s leading authorities on financial strategy this book offers a practical guide for using financial analysis to enhance strategicdecision making. The book includes a coherent framework that outlines practical and intellectually sound guidance for executives who must make strategic decisions. Finance for Strategic Decision Making Explains the role of finance in corporate strategy Offers guidance on resource allocation decisions Explores how to determine the right balance of debt and equity capital to maximize firm value Demonstrates how to use payout policy as a strategic tool Clarifies if a merger, acquisition, or divestiture is in the best interest of an organization Shows how to manage risk Reveals how to measure value created and the effectiveness of upper level management

Finance for Strategic Decision Making demystifies andclarifies for non-financial executives the basics of financialanalysis. It shows how they can make important financial decisionsthat can critically enhance their institution's ability torespond to competitive challenges, undertake new projects, overcomefinancial setbacks, and most importantly, create shareholder value.Written by M. P. Narayanan and Vikram K. Nanda--two of thecountry's leading authorities on financialstrategy--this book offers a practical guide for usingfinancial analysis to enhance strategicdecision making. The bookincludes a coherent framework that outlines practical andintellectually sound guidance for executives who must makestrategic decisions. Finance for Strategic Decision Making* Explains the role of finance in corporate strategy* Offers guidance on resource allocation decisions* Explores how to determine the right balance of debt and equitycapital to maximize firm value* Demonstrates how to use payout policy as a strategic tool* Clarifies if a merger, acquisition, or divestiture is in thebest interest of an organization* Shows how to manage riskReveals how to measure value created and the effectiveness ofupper level management

Series Foreword xiPreface xiii1 Finance and Corporate Strategy 12 The Resource Allocation Decision 133 Cost of Capital 554 Capital Structure and Financing 755 Payout Policy 1136 Mergers and Acquisitions 1377 Divestitures 1798 Risk Management 2119 Performance Evaluation 247Notes 285The Authors 291Index 293