Description
For MBA/graduate students taking a course in corporate finance.
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.
Features
The Law of One Price: A Unifying Principle of Valuation.The Law of One Price is used as a framework, reflecting the modern idea that the absence of arbitrage is the unifying concept in valuation. This theme is explicitly introduced in Chapter 3, "Arbitrage and Financial Decision Making," revisited in each Part Opener, and integrated throughout the text--motivating all major concepts. This methodology directly connects theory to practice, and unifies what might appear to students as disparate topics that comprise the course syllabus (corporate finance, investments, valuation).
Teaching Students to Think Finance.In each chapter, an innovative set of learning aids teaches every student how to "think finance." Problem-solving study aids include:
．Common Mistakes boxes point to frequently made errors stemming from misunderstood core concepts and calculations, as well as mistakes made in practice.
．Worked Examples accompany every important concept using a procedure that illustrates both the Problem and the step-by-step Solution.
．With a simplified presentation of mathematics, this text breaks the sink-or-swim trend found in most texts by systematically using Notation Boxes as well as Numbered and Labeled Equations.
．Timelines are introduced in Chapter 4, "The Time Value of Money," and consistently used throughout the book when appropriate. Stressing the importance of creating timelines for every problem that involves cash flows, each worked example involving a cash flow includes a timeline as the critical first step.
Modern Research. Berk and DeMarzo introduce recent advances in finance research throughout the book. For example, Chapter 16, "Financial Distress, Managerial Incentives, and Information," is a full-chapter treatment of the effects of financial distress, agency issues, and asymmetric information on the firm s choice of capital structure.
Modern Practice.Throughout Corporate Finance the authors connect finance concepts to practice. Chapter 18, "Capital Budgeting with Leverage," shows the relationship between the WACC, APV, and Flow-to-Equity methodologies, and stresses the role of the firm s leverage policy. Then, a unique capstone to capital budgeting, Chapter 19, "Valuation and Financial Modeling: A Case Study," illustrates the application and real-world implementation of valuation techniques.
Applications that Reflect Real Practice. Corporate Finance highlights practices of actual companies and real people in the field with:
．Practitioner interviews
．Real-company chapter-opening examples
．Boxes that show concepts at work in business
Options for Teaching Risk and Return. Chapter 3 briefly introduces the concept of risk and return. Using the no-arbitrage concept, the reasoning behind evaluating risk relative to a benchmark is explained conceptually and allows for use of the concept of risk and return in early chapters. Later, the structure of Part IV is flexible and allows instructors to opt for brief or comprehensive coverage of the topic.
Emphasis of Capital Budgeting and Valuation. Capital budgeting and valuation is presented in two distinct stages. The first, which appears in Chapter 7, "Fundamentals of Capital Budgeting," focuses on cash flows, while the second stage focuses on capital budgeting and valuation in the real world in Chapter 18, Capital Budgeting with Leverage and the capstone chapter 19, "Valuation and Financial Modeling: A Case Study."
MyFinanceLab: Hands-on Practice. Hands-off Grading. Because practice with homework problems is crucial to learning finance, each copy of Corporate Finance comes with MyFinanceLab, a fully integrated homework and tutorial system. MyFinanceLab revolutionizes homework and practice with a unique hint and partial credit system developed by Jonathon Berk and Peter DeMarzo. Find out more at www.myfinancelab.com
New To This Edition
New "Global Financial Crisis" boxes highlight the ongoing sovereign debt crisis and financial crisis of 2007-2009, with analysis focused on the core concepts that underlie financial decision making.
Seven new practitioner interviews support the book’s practical perspective and incorporate timely viewpoints related to recent financial turmoil in the United States and abroad.
Reorganized ratios coverage in Chapter 2 centralizes coverage in a dedicated section that provides students with the tools to holistically analyze financial statements.
New examples with non-annual interest rates in Chapter 4 provide applications of time value of money concepts in a personal loan context.
Chapter 6, "Valuing Bonds," now appears after Chapter 5, "Interest Rates," providing an immediate application of time value of money concepts to fixed debt and continuity in the interest rate determination coverage across the two chapters.
Chapter 6, "Valuing Bonds," addresses the risk level of fixed-debt securities as illustrated by the sovereign debt crisis, provides an overview of European debt problems, and examines whether Treasuries are risk-free securities.
New "Using Excel" boxes provide hands-on instruction of Excel techniques and include screenshots to serve as a guide for students.
Updated text discussions, figures, and tables throughout.
作者簡介
Jonathan Berk
Jonathan Berk, Stanford University