The Ownership of the Firm, Corporate Finance, and Derivatives

Preface.- Chapter 1: The Ownership of the Firm.- 1.1: A Story of Robin Hood.- 1.2: Power, Entrepreneur, and Objectives of the Firm.- 1.3: Choice, Risk Attitude, and Types of Contract.- References.- Chapter 2: Maximizing Profits and Maximizing Resource Providers' Wealth.- 2.1: The Coase Theorem and the Modigliani-Miller Propositions.- 2.2: A Simple Example of the Modigliani-Miller Second Proposition.- References.- Chapter 3: A Reconsideration of the Modigliani-Miller Propositions.- 3.1: A Tale of Two Cows-The Modigliani-Miller First Proposition.- 3.2: Some Fallacious Arguments for the Modigliani-Miller Second Proposition.- References.- Chapter 4: Derivatives and the Theory of the Firm.- 4.1: Model-Free Option Prices.- 4.2: The Firm's Resources and Derivatives.- 4.2.1: Each Resource Is Both a European Call Option and a European Put Option.- 4.2.2: Each Resource Is a Stock Plus a Forward Contract.- References.- Chapter 5: Arbitrage and Valuation of Different Contracts.- 5.1: The Arbitrage Theorem.- 5.2: Properties of the Binomial Option Pricing Model.- 5.3: Valuing Different Contracts.- Appendix A: Incomplete Market.- Appendix B: Incomplete Market and Replication of Securities.- Appendix C: More Uncertain Project and the Firm's Value.- References.- Chapter 6: Misinterpretations of Residual Claim in Finance and Corporate Law.- 6.1: De Jure versus De Facto.- 6.2: Agency Costs and Residual Claim.- 6.3: Moral Hazard and Residual Claim.- References.- Index.