The first text devoted exclusively to modern advanced corporate finance, this book provides a comprehensive exploration of theoretical and empirical literature on corporate financial policies and strategies—particularly those of U.S. nonfinancial firms— defined in rational, economic terms. The text defines corporate financial policies and strategies broadly to include not only 1) managerial decisions regarding the issuance and retirement of debt and equity securities and the firm's overall capital structure, but also decisions regarding issues such as 2) the firm's governance and ownership structures, 3) contracting between a firm and its management, creditors, and other stakeholders, 4) dividends and stock repurchases, 5) mergers, acquisitions, takeovers, buyouts, equity carve-outs, spin-offs, etc., 6) financial distress and its resolution, and 7) risk management and the design of securities. Throughout, application of theory is often shown in relation to financial decisions made by a specific firm.