Description

For programs using a text in a two-semester course, this book highlights how core financial principles can improve individual financial decision making.

• Connects theory to practice – Shows students how three major topics (corporate finance, investments and valuation) are connected by using ‘The Law of One Price’ as a framework throughout the text.
• Balanced approach – Uses both time-tested and modern principles with the practical perspective of a financial manager, offering students the tools to make sound financial decisions.
• Practical study aids – Designed to help students master core concepts and learn to identify and solve problems faced by today’s practitioners.

Features

Hallmark Features of this title

A Methodology that connects theory to practice

• The Law of One Price is used as a framework, unifying what might appear to students as disparate topics.
• Options for Teaching Risk and Return are introduced in chapter 3 allowing it to be used in early chapters.
• Study aids with a practical focus allow students to master the core concepts and learn to solve modern problems.

Built-in tools to encourage students to 'think finance'

• Personal Finance examples demonstrate how to apply managerial finance concepts, tools, and techniques to personal decisions.
• Common Mistakes boxes alert students to frequently made mistakes.
• Worked examples accompany every important concept using a step-by-step procedure that models the solution and process.

New to this Edition

Pearson's webinar series 'Changing Perspectives': a conversation regarding active learning in Corporate Finance

Authors Jonathan Berk and Peter DeMarzo shared useful tips on how to keep finance students engaged and spoke more about the interactive tools available with the textbook's new edition.

The webinar also focused on 'clearing the air' regarding common misconceptions amongst students, which could impact their engagement and understanding with the subject, encouraging them to experiment with visualisation data to deepen their understanding of the subject.

Read our blog post 'Bringing learning to life via interactive finance tools' for more information and watch the YouTube video of the webinar.

New to this edition

Updated material and added features enhance student engagement with the subject.

• General Interest boxes highlight timely material from financial publications regarding business problems, real-company practices, and the latest tax rates.
• Chapter-Opening notation boxes define the variables and acronyms used in the chapter and serve as a 'legend' for students' reference.
• Concept Check questions at the end of each section enable students to test their understanding and target areas for further review.

Additional business scenarios and interviews with notable practitioners help students understand real-world practice.

• DataCases present in-depth business scenarios with questions to guide student analysis. Many questions involve the use of Internet resources and Excel. Cases on bitcoin, JMP, and more have been added to the 5th Edition.
• Six interviews with notable practitioners, such as Janet Yellen, Susan Athey, and Anne Martin, address the effects of the financial crisis and the ongoing European sovereign debt crisis.
• Berk and DeMarzo introduce recent advances in financial research, data, events, and technologies, including fintech, cryptocurrencies, blockchain, and capital budgeting.

Table of Contents

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.

Before coming to Stanford, he was the Sylvan Coleman Professor of Finance at Hans School of Business at the University of California, Berkeley. Prior to earning his Ph.D., he worked as an Associate at Goldman Sachs (where his education in finance really began).

Peter DeMarzo is the Staehelin Family Professor of Finance at the Graduate School of Business, Stanford University.

He is the current President of the American Finance Association and a Research Associate at the National Bureau of Economic Research. He teaches MBA and Ph.D. courses in Corporate Finance and Financial Modeling.