For MBA/graduate students taking a course in corporate finance. Berk and DeMarzo's Corporate Finance uses a unifying valuation framework, the Law Of One Price, to present the core content instructors expect, the new ideas they want, and the pedagogy their students need to succeed.
Corporate Finance: The Core fits programs and individual professors who desire a streamlined book that is specifically tailored to the topics covered in the first one-semester course. For programs and professors who would like to use a text in a two semester, or more, sequence, please see Corporate Finance, the 31 chapter book also by Jonathan Berk and Peter DeMarzo.
Key Features
- The Law of One Price: A Unifying Principle of Valuation.
- Teaching Students to Think Finance.
- Simplified Presentation of Mathematics.
- Notation Boxes.
- Timelines.
- Numbered and Labeled Equations.
- NEW! Using Excel Boxes.
- Spreadsheet Tables.
- Practice Finance to Learn Finance.
- Concept Check questions.
- End-of-chapter problems written personally by Jonathan Berk and Peter DeMarzo.
- Data Cases.
- Modern Research.
- Modern Practice.
- NEW! Focus on the 2007–2009 Financial Crisis and Sovereign Debt Crisis.
- Study Aids with a Practical Focus.
- Common Mistakes boxes.
- Applications that Reflect Real Practice.
- Interviews with notable practitioners.
- General Interest boxes.
- Options for Teaching Risk and Return.
- Emphasis of Capital Budgeting and Valuation.
New to This Edition
- The 2007—2009 financial crisis and European sovereign debt crisis provide a valuable pedagogical illustration of what can go wrong when practitioners ignore the core concepts that underlie financial decision making. We integrate this important lesson into the book in a series of contextual Global Financial Crisis boxes. These boxes bring the relevance of the crises home to students by illustrating and analyzing key details about the financial crisis and sovereign debt dynamics.
- New centralized coverage of ratios in Chapter 2 in a specific section provides students with the tools to analyze financial statements.
- The reorganized flow of topics in Chapters 5 and 6–Chapter 6, “Valuing Bonds,” now appears after Chapter 5, “Interest Rates”–provides an immediate application of time value of money concepts to fixed debt and continuity in the interest rate determination coverage across the two chapters.
- Seven new practitioner interviews incorporate timely perspectives from leaders in the field related to the recent financial crisis and ongoing European sovereign debt crisis.
- New Using Excel boxes provide hands-on instruction of Excel techniques and include screenshots to serve as a guide for students.
- 45 new problems are included and many others are refined; the authors have once again personally wrote and solved each one. In addition, every single problem is available in MyFinanceLab, the groundbreaking homework and tutorial system that accompanies the book.
Contents
PART I. INTRODUCTION
- 1. The Corporation
- 2. Introduction to Financial Statement Analysis
- 3. The Law of One Price and Financial Decision Making
PART II. TIME, MONEY, AND INTEREST RATES
- 4. The Time Value of Money
- 5. Interest Rates
- 6. Valuing Bonds
PART III. VALUING PROJECTS AND FIRMS
- 7. Investment Decision Rules
- 8. Fundamentals of Capital Budgeting
- 9. Valuing Stocks
PART IV. RISK AND RETURN
- 10. Capital Markets and the Pricing of Risk
- 11. Optimal Portfolio Choice and the Capital Asset Pricing Model
- 12. Estimating the Cost of Capital
- 13. Investor Behavior and Capital Market Efficiency
PART V. CAPITAL STRUCTURE
- 14. Capital Structure in a Perfect Market
- 15. Debt and Taxes
- 16. Financial Distress, Managerial Incentives, and Information
- 17. Payout Policy
PART VI. ADVANCED VALUATION
- 18. Capital Budgeting and Valuation with Leverage
- 19. Valuation and Financial Modeling: A Case Study
About the Authors
- Jonathan Berk is the A.P. Giannini Professor of Finance at the Graduate School of Business, Stanford University and is a Research Associate at the National Bureau of Economic Research. Before coming to Stanford, he was the Sylvan Coleman Professor of Finance at Haas School of Business at the University of California, Berkeley. Prior to earning his Ph.D., he worked as an Associate at Goldman Sachs (where his education in finance really began).
- Peter DeMarzo is the Mizuho Financial Group Professor of Finance and Senior Associate Dean for Academic Affairs at the Stanford Graduate School of Business. He is also a Research Associate at the National Bureau of Economic Research. He currently teaches MBA and Ph.D. courses in Corporate Finance and Financial Modeling. In addition to his experience at the Stanford Graduate School of Business, Professor DeMarzo has taught at the Haas School of Business and the Kellogg Graduate School of Management, and he was a National Fellow at the Hoover Institution.
Book Details
- Hardcover: 768 pages
- Publisher: Prentice Hall; 3 edition (c2014)
- Language: English
- ISBN-10: 0133097897
- ISBN-13: 978-0133097894
- Product Dimensions: 10 x 8 x 1 inches
- List Price: $223.00