Using the valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo have set the new canon for corporate finance texts. Corporate Finance blends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager. Students can “practice finance to learn finance” by solving problems like those faced by today's professionals. The 6th Edition features the latest research, data, events and technologies to help students develop the tools they need to make sound financial decisions. Hallmark features for this title The Law of One Price is used as a unifying valuation framework to connect theory to practice and unify what might appear to be disparate topics. A simplified presentation of mathematics using notation boxes, labeled equations, etc. help students master the jargon and math. An emphasis on capital budgeting and valuation ensures students understand these important topics. Personal Finance examples let students apply managerial finance concepts, tools and techniques to their own personal finance decisions. Finance in Times of Disruption boxes analyze and note lessons from the COVID-19 pandemic, global financial crisis, and sovereign debt crises. Worked examples accompany important concepts and model the solution and process step-by-step.
PART 1: Introduction The Corporation and Financial Markets Introduction to Financial Statement Analysis Financial Decision Making and the Law of One Price PART 2: Time, Money, and Interest Rates The Time Value of Money Interest Rates Valuing Bonds PART 3: Valuing Projects and Firms Investment Decision Rules Fundamentals of Capital Budgeting Valuing Stocks PART 4: Risk and Return Capital Markets and the Pricing of Risk Optimal Portfolio Choice and the Capital Asset Pricing Model Estimating the Cost of Capital Investor Behavior and Capital Market Efficiency PART 5: Capital Structure Capital Structure in a Perfect Market Debt and Taxes Financial Distress, Managerial Incentives, and Information Payout Policy PART 6: Advanced Valuation Capital Budgeting and Valuation with Leverage Valuation and Financial Modeling: A Case Study PART 7: Options Financial Options Option Valuation Real Options PART 8: Long-Term Financing Raising Equity Capital Debt Financing Leasing PART 9: Short-Term Financing Working Capital Management Short-Term Financial Planning PART 10: Special Topics Mergers and Acquisitions Corporate Governance Risk Management International Corporate Finance..
