Using linear programming to map long‑range financial planning for real results.
This practical guide shows how LP can help you decide which investment and financing moves to make to maximize stock value, even when uncertainty is present.
The book contrasts LP with traditional cost‑of‑capital methods and explains how financing and investment choices interact in real companies. It covers essential ideas like risk independence, debt capacity, bankruptcy costs, and how these factors can be modeled with simple, workable constraints. You’ll also see practical methods to turn theory into actionable planning.
- Understand the linear programming framework for selecting assets and financing options.
- Learn about risk independence and why it matters for portfolio‑like decisions.
- Explore debt capacity, bankruptcy costs, and how to model them in an LP program.
- Discover practical rules of thumb that connect present value, tax benefits, and debt to shareholder value.
Ideal for readers of corporate finance, long‑range planning, and students looking for a clear, applied treatment of financial optimization.