Using the unifying valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo set the new standard for corporate finance textbooks. Corporate Finance blends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager. With this ideal melding of the core with modern topics, innovation with proven pedagogy, Berk and DeMarzo establish the new canon in finance.
For programs and professors who would like a streamlined book that is specifically tailored to the topics covered in the first one-semester course, Corporate Finance: The Core is also available 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.
- Practice Finance to Learn Finance.
- 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
- New ‘Global Financial Crisis’ boxes
- Seven new practitioner interviews.
- Reorganized ratios coverage in Chapter 2.
- New examples with non-annual interest rates in Chapter 4.
- Chapter 6, “Valuing Bonds,” now appears after Chapter 5, “Interest Rates”.
- New ‘Using Excel’ boxes
- Updated text discussions, figures, and tables throughout.
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
PART VII. OPTIONS
- 20. Financial Operations
- 21. Option Valuation
- 22. Real Options
PART VIII. LONG-TERM FINANCING
- 23. Raising Equity Capital
- 24. Debt Financing
- 25. Leasing
PART IX. SHORT-TERM FINANCING
- 26. Working Capital Management
- 27. Short-Term Financial Planning
PART X. SPECIAL TOPICS
- 28. Mergers and Acquisitions
- 29. Corporate Governance
- 30. Risk Management
- 31. International Corporate Finance
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: 1136 pages
- Publisher: Prentice Hall; 3 edition (c2014)
- Language: English
- ISBN-10: 0132992477
- ISBN-13: 978-0132992473
- Product Dimensions: 10.1 x 8.2 x 1.7 inches
- List Price: $289.80