Finance Fundamental Problems and Solutions [Paperback]

As indicated by the title, this book focuses on fundamental problems in finance: a logical dilemma in valuation, stock valuation methods/models, risk valuation, and optimal capital structure. It presents an innovative approach to logic and quantitative reasoning (without advanced mathematics) that delivers valuable results ---- convincing solutions to these problems. Readers in finance will definitely be interested in these solutions as well as the methods. In fact, these fundamental problems are essential in the field of finance, and they have remained unsolved (or partly unsolved) for decades. The solutions offered in this book are all sound in theory and feasible in practice, and will hopefully benefit both?theoretic al research and practical decision-making.

This book probes problems in finance: a logic dilemma in stock valuation models, risk valuation and optimal capital structure. Without advanced mathematics, the book offers logic and quantitative reasoning that is sound in theory and feasible in practice.Finance and its Fundamental Problems.- Does a Positive Perpetual Growth Rate Exist?.- Valuation Based on Required Payback Period.- Certainty Equivalent, Risk Premium and Asset Pricing.- Tax Shield, Bankruptcy Cost and Optimal Capital Structure.

Zhiqiang Zhang is an associate professor in the finance area at the School of Business, Renmin University of China. He currently teaches courses on corporate finance, valuation, real options etc. for the undergraduate and graduate students as well as MBA students. His primary research interests are in corporate finance and asset pricing. He has published more than 30 papers in domestic and international journals, and he has written and translated (from English to Chinese) more than 10 books in the area of finance.

His research can be summarized as three series in finance. The first series mainly concerns valuation, where he develops a brand-new approach. Based on the new lı