Fundamentals of Corporate Finance, 4th edition

Published by Pearson (October 30, 2024) © 2025

  • Jonathan Berk Stanford University
  • Peter DeMarzo Stanford University
  • Jarrad Harford University of Washington
  • Guy Ford
  • Vito Mollica
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A practical introduction to modern-day core finance principles.

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Fundamentals of Corporate Finance provides a highly accessible presentation of difficult finance concepts that will help shape future generations of finance professionals, as well as instil financial awareness and skills in non-majors. The text arms students with a problem-solving methodology, real-life financial management practices, and an overarching valuation framework that they can apply in their future careers.

Fully localised and updated with new case studies, examples and exercises, the 4th Australian edition gives students the opportunity to practice and apply course concepts. It achieves the difficult task of capturing all the relevant elements of investment, financing, dividend and risk-management decisions in both a regional and an international setting, connecting students to the latest financial issues and policy in today's world of business.

  • 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 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. Introduction: Capital Structure
  • 17. Payout policy
  • Part 7: Financial planning
  • 18. Financial modelling and proforma 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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