Customer Reviews

Capital Budgeting and Long-Term Financing Decisions

5 star:		(2)
4 star:		(0)
3 star:		(1)
2 star:		(1)
1 star:		(1)

 

 

I have used this as a textbook for executive MBA students. The text is comprehensive and the reading is easy but some cases, although short, are confuse. The authors spend precious time in topics which are usually subject of other disciplines and the students have already studied, like derivatives, lease analysis, linear programming and mergers, just to name a few. On the other hand, the discussion of option models is restricted to a few pages and do not emphasize the use of options to evaluate flexibility. It's almost unconceivable to organize a course in capital budgeting without discussing real options, so the book has to be complemented, while several chapters could be eliminated.

I felt that this textbook which was used for one of my mba classes was confusing. There are mistakes and typos which are unacceptable in a finance text. The cases do not get directly to the point, and add distracting information to make the case seem more 'real,' but instead it is just unclear. The explanations and examples are not explained well.

This book explains very well the diffrent concepts and techniques used in capital budgeting such as Divident, risk-adjusted cash flow analysis, WACC calculations, and an introduction to Linear programing. However, it does not provide a very advanced analysis of the techniques. The book shows you how to use them, the different assumptions behind each technique, advantage and disadvantage, but does not explain how to apply the techniques in very complexe situations. Overall, it is a classic in terms of content and the number of topics cavered.

I purchased this book over a month ago and have yet to receive it. I would like to have the book considering I am getting close to being halfway through the semester already.

An excellent book to refresh your knowledge or as a reference source. Well written and covers everything.