Corporate Finance

This textbook provides a comprehensive introduction to corporate finance and the financial environment, designed for undergraduate students in Zambia, Africa, and globally. The book balances rigorous theory with practical application, ensuring that students not only understand the principles of corporate finance but also develop the skills to apply them in real-world decision-making.

The text begins with the foundations of financial management, exploring the role of corporations in the economy, the time value of money, and the relationship between risk and return. Subsequent chapters cover essential topics such as bonds and bond valuation, equity analysis, capital budgeting, cost of capital, working capital management, dividend policy, and corporate governance. Students are guided step by step through key formulae, financial models, and problem-solving methods, reinforced by practice exam-style questions and worked examples.

Unique to this textbook is its contextual relevance: it highlights how financial principles apply in Zambia’s capital markets, including the Lusaka Securities Exchange (LuSE), corporate bonds, and Government of the Republic of Zambia (GRZ) bonds. By doing so, it equips students not only to succeed academically but also to contribute meaningfully to financial decision-making in the organizations they will serve.

With clear explanations, practical illustrations, and a strong emphasis on both global standards and local realities, this book is an indispensable resource for students, lecturers, and practitioners seeking to understand and apply the core principles of corporate finance.