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.
The second edition reflects the constantly changing world of finance, including
information on the recent financial crisis, new behavioral finance research, and updated
practitioner interviews.
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 2nd edition is also available by Jonathan Berk and Peter DeMarzo.
Table of Contents
Part I: Introduction
1 The Corporation
2 Introduction to Financial Statement Analysis
Part II: Tools
3 Arbitrage and Financial Decision Making
4 The Time Value of Money
5 Interest Rates
Part III: Basic Valuation
6 Investment Decision Rules
7 Fundamentals of Capital Budgeting
8 Valuing Bonds
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: Valuation
18 Capital Budgeting and Valuation with Leverage
19 Valuation and Financial Modeling: A Case Study
Part VII: Options
20 Financial Options
21 Option Valuation
22 Real Options
Part VIII: Long-Term Financing
23 The Mechanics of 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
Book with access code
