Description

For undergraduate courses in corporate finance or financial management.

This package includes MyLab Finance.

 

Help students practice and connect to real-world financial decisions

Fundamentals of Corporate Finance offers a practical introduction to modern-day core principles, arming students with a problem-solving methodology, real-life financial management practices, and an overarching valuation framework that they can apply in their future careers. Updated with new examples, exercises, and statistics, the 4th Edition gives students the opportunity to practice and apply course concepts, while connecting them to the latest financial issues and policy in today’s world of business.

 

 

This package includes MyLab^TM Finance, an online homework, tutorial, and assessment program designed to work with this text to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

 

MyLab should only be purchased when required by an instructor. Please be sure you have the correct ISBN and Course ID. Instructors, contact your Pearson rep for more information.

Features

With an emphasis on bridging theory to practice, the authors help students master the core concepts and solve problems that today’s practitioners face.

• The Valuation Principle is presented as the foundation of all financial decision-making. The central idea is that a firm should take projects or make investments on the firm’s value by comparing the costs and benefits in equivalent terms.
• Guided Problem Solutions are examples that accompany every important concept using a consistent problem solving methodology that breaks the solution process into three steps: Plan, Execute, and Evaluate.
• Personal Finance GPS examples showcase the use of financial analysis in everyday life by setting problems in scenarios such as purchasing a new house or car, and saving for retirement.
• Common Mistake boxes alert students to frequently made mistakes stemming from misunderstanding core concepts and calculations—in the classroom and in the field.

Timely, practical applications prepare students to use financial concepts in their future careers.

• UPDATED! Practitioner Interviews from notable professionals highlight leaders in the field and address the effects of the financial crisis. In the 4th edition, new interviews are included from executives from NASDAQ, Oracle, Google, AngelList, and more.
• Global Financial Crisis boxes throughout tie the material to aspects of the 2007-2009 financial crisis.
• UPDATED! Data Cases and Integrative Cases give students a chance to apply the material with realistic data-analysing exercises and problems that integrate material across chapters in each major part of the book.
• Chapter-Opening Interviews with recent college graduates now working in the field of finance underscore the relevance of the concepts to students who are encountering them for the first time.
• General Interest boxes highlight timely material from financial publications that shed light on business problems and real-company practices.

Integrated support for Microsoft^® Excel^® and the financial calculator will save instructors class time while allowing students to “think finance” using the requisite tools.

• UPDATED! Using Excel boxes describe Excel techniques and include screenshots to serve as a guide for students using this technology.
• Because one of the hardest parts of learning finance is mastering the jargon, math, and non-standardised notation, the authors systematically use notation boxes, numbered and labeled equations, and timelines.
• Financial Calculator instructions show the keystrokes and screenshots for how to solve problems using the HP-10BII and TI BAII Plus Professional calculators, allowing students to get just-in-time help as they study.

To learn finance, students need to practice finance, and instructors have flexibility in designing their assignments with a wide range of problems, cases, and projects.

• Concept Check Questions at the end of each section enable students to test their understanding and target areas in which they need further review.
• UPDATED! Data Cases and Integrative Cases give students a chance to apply the material with realistic data-analysing exercises and problems that integrate material across chapters in each major part of the book.

New to this Edition

Timely, practical applications prepare students to use financial concepts in their future careers.

• Practitioner Interviews from notable professionals highlight leaders in the field and address the effects of the financial crisis. In the 4th edition, new interviews are included from executives from NASDAQ, Oracle, Google, AngelList, and more.
• Data Cases and Integrative Cases give students a chance to apply the material with realistic data-analyzing exercises and problems that integrate material across chapters in each major part of the book.

Integrated support for Microsoft^® Excel^® and the financial calculator will save instructors class time while allowing students to “think finance” using the requisite tools.

• Using Excel boxes describe Excel techniques and include screenshots to serve as a guide for students using this technology.
• Excel End-of-chapter Problems indicated by an Excel icon have instructor solutions and student templates available in Pearson MyLab Finance.

To learn finance, students need to practice finance, and instructors have flexibility in designing their assignments with a wide range of problems, cases, and projects.

• End-of-Chapter Problems written personally by Berk/DeMarzo/Harford offer instructors the opportunity to assign first-rate materials to students for homework and practice with the confidence that the problems are consistent. In addition, every single problem is available in Pearson MyLab Finance, the groundbreaking homework and tutorial system that accompanies the book.
• Data Cases and Integrative Cases give students a chance to apply the material with realistic data-analyzing exercises and problems that integrate material across chapters in each major part of the book.

Pearson MyLab Finance not included. Students, if MyLab is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyLab should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.

• Auto-graded Excel Projects. Using proven, field-tested technology, auto-graded Excel Projects allow instructors to seamlessly integrate Excel content into their course without having to manually grade spreadsheets. Students have the opportunity to practice important Finance skills in Microsoft Excel, helping them to master key concepts and gain proficiency with Excel. Students simply download a spreadsheet, work live on a finance problem in Excel, and then upload that file back into Pearson MyLab Finance, where they receive reports on their work that provide personalized, detailed feedback to pinpoint where they went wrong on any step of the problem. These reports generate within minutes of submission.
• Interactive Figures. Select in-text graphs and figures have been digitally enhanced to allow students to interact with variables to affect outcomes and bring concepts to life

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. Bonds
• 7. Stock Valuation
• PART 3: Valuation and the Firm
• 8. Investment Decision Rules
• 9. Fundamentals of Capital Budgeting
• 10. Stock 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 Equity Capital
• 15. Debt Financing
• PART 6: Capital Structure and Payout Policy
• 16. Capital Structure
• 17. Payout Policy
• PART 7: Financial Planning and Forecasting
• 18. Financial Modeling and Pro Forma Analysis
• 19. Working Capital Management
• 20. Short-Term Financial Planning
• PART 8: Special Topics
• 21. Option Applications and Corporate Finance
• 22. Mergers and Acquisitions
• 23. International Corporate Finance