A recognized classic, Financial Theory and Corporate Policy provides a concise, unified treatment of finance, combining theory, empirical evidence, and applications. Major contributions in financial literature are discussed and summarized. The book provides MBA and doctoral students with an excellent bridge to prevailing scholarship in finance. Two chapters discuss futures markets and financial applications for the corporate financial officer. The fundamentals of discounting, management of cash flows, capital budgeting, utility theory, and other relevant topics are integrated into the modern theory of finance. A Student Solutions Manual giving answers to end-of-chapter problems is also available.