Table of Contents

• PART 1 INTRODUCTION
• 1 Corporate Finance and the Financial Manager
• 2 Introduction to Financial Statement Analysis
• PART 2 INTEREST RATES AND VALUING CASH FLOWS
• 3 Time Value of Money: An Introduction
• 4 Time Value of Money: Valuing Cash Flow Streams
• 5 Interest Rates
• 6 Bond Valuation
• 7 Share Valuation: The Dividend-Discount Model
• PART 3 VALUATION AND THE FIRM
• 8 Investment Decision Rules
• 9 Fundamentals of Capital Budgeting
• 10 Share Valuation: A Second Look
• PART 4 RISK AND RETURN
• 11 Risk and Return in Capital Markets
• 12 Systematic Risk and the Equity Risk Premium
• 13 The Cost of Capital
• PART 5 LONG-TERM FINANCING
• 14 Raising Capital
• 15 Debt Financing
• PART 6 CAPITAL STRUCTURE AND VALUATION
• 16 Capital Structure
• 17 Payout Policy
• PART 7 FINANCIAL PLANNING
• 18 Financial Modelling and Pro-forma Analysis
• 19 Working Capital Management
• PART 8 SPECIAL TOPICS
• 20 Option Applications and Corporate Finance
• 21 Mergers and Acquisitions
• 22 International Corporate Finance
• 23 Insurance and Risk Management

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About the Author

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. Prior to Stanford, he was the Sylvan Coleman Professor of Finance at the Haas School of Business at the University of California, Berkeley, where he taught the introductory Corporate Finance course. Before earning his PhD from Yale University, he worked as an associate at Goldman Sachs, where his education in finance really began. His research has won a number of awards including the TIAA-CREF Paul A. Samuelson Award, the Smith Breeden Prize, Best Paper of the Year in The Review of Financial Studies, and the FAME Research Prize. His paper 'A Critique of Size-Related Anomalies' was selected as one of the two best papers ever published in The Review of Financial Studies. In recognition of his influence on the practice of finance, he has received the Bernstein Fabozzi/Jacobs Levy Award, the Graham and Dodd Award of Excellence, and the Roger F. Murray Prize. He served as an Associate Editor of the Journal of Finance for eight years and is currently an Advisory Editor at the journal.

Peter DeMarzo is the Mizuho Financial Group Professor of Finance and Senior Associate Dean for Academic Affairs at Stanford Graduate School of Business. He is also a Research Associate at the National Bureau of Economic Research. He currently teaches MBA and PhD courses in Corporate Finance and Financial Modelling. Prior to Stanford, he taught at the Haas School of Business and the Kellogg Graduate School of Management, and he was a National Fellow at the Hoover Institution. Professor DeMarzo received the Sloan Teaching Excellence Award at Stanford in 2004 and 2006 and the Earl F. Cheit Outstanding Teaching Award at the University of California, Berkeley, in 1998. Professor DeMarzo has served as an Associate Editor for The Review of Financial Studies, Financial Management, and the B.E. Journals in Economic Analysis and Policy, as well as a Director of the American Finance Association. He is currently President of the Western Finance Association. Professor DeMarzo has received numerous awards for his research including the Western Finance Association Corporate Finance Award and the Barclays Global Investors/Michael Brennan Best Paper Award from The Review of Financial Studies.

Jarrad Harford is the Marion B. Ingersoll Professor of Finance at the University of Washington. Prior to Washington, Professor Harford taught at the Lundquist College of Business at the University of Oregon. He received his PhD in Finance with a minor in Organisations and Markets from the University of Rochester. Professor Harford has taught the core undergraduate finance course, Business Finance, for over 13 years, as well as an elective in Mergers and Acquisitions, and 'Finance for Non-financial Executives' in the executive education program. He has won numerous awards for his teaching, including the UW Finance Professor of the Year (2010), Interfraternity Council Excellence in Teaching Award (2007 and 2008), ISMBA Excellence in Teaching Award (2006), and the Wells Fargo Faculty Award for Undergraduate Teaching (2005). He is also the Faculty Director of the UW Business School Undergraduate Honors Program. Professor Harford serves as an Associate Editor for The Journal of Financial Economics, Journal of Financial and Quantitative Analysis and Journal of Corporate Finance.

Guy Ford is a Professor and Director of the MBA program at the University of Sydney Business School. He was previously an Associate Professor in Finance at the Macquarie Graduate School of Management, where he also held various roles including Interim Dean, Deputy Dean and Director of Programs. Professor Ford has designed and delivers MBA and executive education programs.