Description

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content, which is especially relevant to students outside the United States.

 

For MBA/graduate students taking a course in corporate finance.

This package includes MyLab.

 

An emphasis on modern theory blended with practice elevates students’ financial decision making

Using the valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo have set the new canon for corporate finance textbooks. Corporate Finance, 5th Edition blends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager. Students have the opportunity to “practice finance to learn finance” by solving quantitative business problems like those faced by today’s professionals. With built-in resources to help students master the core concepts, students develop the tools they need to make sound financial decisions in their careers.

 

For a streamlined book specifically tailored to the topics covered in the first one-semester course, Corporate Finance: The Core, 5th Edition is also available by Jonathan Berk and Peter DeMarzo.

 

Reach every student by pairing this text with MyLab Finance

MyLab™ is the teaching and learning platform that empowers you to reach every student. By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student.

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

Features

Methodology that connects theory to practice

·    The Law of One Price: A Unifying Principle of Valuation. The Law of One Price is used as a framework, reflecting the modern idea that the absence of arbitrage is the unifying concept in valuation. This theme is introduced in Chapter 3, revisited in each Part Opener, and integrated throughout. It connects theory to practice and unifies what might appear to students as disparate topics that comprise the course syllabus.

·    Options for Teaching Risk and Return. Chapter 3 briefly introduces the concept of risk and return so that it can be used in early chapters. Later, Part IV is flexible and allows instructors to opt for brief or comprehensive coverage of the topic.

·    Emphasis of Capital Budgeting and Valuation. Capital budgeting and valuation is presented in two distinct stages. In Chapter 8, the first stage focuses on cash flows, while the second stage focuses on capital budgeting and valuation in the real world in Chapter 18 and the capstone Chapter 19.

·    Study aids with a practical focus. To be successful, students need to master the core concepts and learn to solve problems that today's practitioners face.

o Common Mistakes boxes alert students to frequently made mistakes stemming from misunderstanding core concepts and calculations — in the classroom and in the field.

o Worked examples accompany every important concept using a step-by-step procedure that models the solution and process.

·    Corporate Finance: The Core features real companies, leaders, and practices:

o New - Six interviews with notable practitioners, such as Janet Yellen, Susan Athey, and Anne Martin, highlight leaders in the field and address the effects of the financial crisis and ongoing European sovereign debt crisis. Nobel Prize boxes reflect recent prizes awarded for finance.

o Updated - General Interest boxes highlight timely material from financial publications about business problems, real-company practices, and the latest tax rates.

o New and Updated - Global Financial Crisis boxes examine individuals and companies in crisis around the world and include updated discussion on The Dodd-Frank Act’s implementation and relevancy.  

·    Updated - Berk and DeMarzo introduce recent advances in financial research, data, events, and technologies, including:

o Updates consistent with the Tax Cut and Jobs Act of 2017

o Updated discussions of fintech, cryptocurrencies, blockchain, and capital budgeting

o New discussion on debt and taxes, and expanded information on international corporate finance

 

Built-in tools to encourage students to ‘think finance’

·    Updated - Personal Finance examples demonstrate how students can apply managerial finance concepts, tools, and techniques to their own personal finance decisions.

·    Nobel Prize boxes reflect recent Nobel prizes awarded for material covered in the text.

·    A simplified presentation of mathematics. One of the hardest parts of learning finance is mastering the jargon, math, and non-standardized notation. Corporate Finance: The Core systematically uses the following:

o Updated - Chapter-Opening notation boxes define the variables and acronyms used in the chapter and serve as a 'legend' for students' reference.

o Timelines are emphasized as an important first step in solving every problem that involves cash flows.

o Numbered and labeled equations. The first time a full equation is given in notation form it is numbered. Key equations are titled and revisited in the summary and in end papers.

·    Practice finance to learn finance. Working problems are the proven way to cement and demonstrate an understanding of finance.

o Updated - End-of-Chapter Excel Projects exercises help students gain important statistical skills and become more proficient in Excel. Excel exercises with an icon are assignable in MyLab Finance.

o Updated - Concept Check questions at the end of each section enable students to test their understanding and target areas for further review.

o Updated - End-of-chapter problems (and solutions) written by Jonathan Berk and Peter DeMarzo offer instructors the opportunity to assign accurate, first-rate problems that are consistent with chapter content.

§  Updated - Data Cases present in-depth business scenarios with questions to guide students' analysis. Many questions involve the use of internet resources and Excel. Cases on bitcoin, JMP, and more have been added to the 5th Edition.

 

 

This package includes MyLab™ Finance, the teaching and learning platform that empowers you to reach every student. By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and often improves results for each student.

 

·    Teach your course your way: Your course is unique. So whether you’d like to build your own assignments, teach multiple sections, or set prerequisites, MyLab gives you the flexibility to easily create your course to fit your needs.

o New - Pearson eText is a simple-to-use, mobile-optimized, personalized reading experience available within MyLab. It lets students highlight, take notes, and review key vocabulary all in one place — even when offline. Seamlessly integrated videos and other rich media engage students and give them access to the help they need, when they need it. Educators can easily share their own notes with students so they see the connection between their eText and what they learn in class.

·    Empower each learner: Each student learns at a different pace. Personalized learning pinpoints the precise areas where each student needs practice, giving all students the support they need — when and where they need it — to be successful.

o Question Help consists of homework and practice questions to give students unlimited opportunities to master concepts. Learning aids walk students through the problem — giving them assistance when they need it most.

o The Study Plan gives students personalized recommendations, practice opportunities, and learning aids to help them stay on track.

·    Deliver trusted content: You deserve teaching materials that meet your own high standards for your course. That’s why we partner with highly respected authors to develop interactive content and course-specific resources that you can trust — and that keep your students engaged.

o Using proven, field-tested technology, Excel Projects let you seamlessly integrate Microsoft^® Excel^® content into your course without having to manually grade spreadsheets.

Improve student results: When you teach with MyLab, student performance often improves. That’s why instructors have chosen MyLab for over 15 years, touching the lives of over 50 million students.

New to this Edition

Methodology that connects theory to practice

·    Six interviews with notable practitioners, such as Janet Yellen, Susan Athey, and Anne Martin, highlight leaders in the field and address the effects of the financial crisis and ongoing European sovereign debt crisis. Nobel Prize boxes reflect recent prizes awarded for finance.

o General Interest boxes highlight timely material from financial publications about business problems, real-company practices, and the latest tax rates.

o Global Financial Crisis boxes examine individuals and companies in crisis around the world and include updated discussion on The Dodd-Frank Act’s implementation and relevancy.  

·    Berk and DeMarzo introduce recent advances in financial research, data, events, and technologies, including:

• Updates consistent with the Tax Cut and Jobs Act of 2017
• Updated discussions of fintech, cryptocurrencies, blockchain, and capital budgeting
• New discussion on debt and taxes, and expanded information on international corporate finance

 

Built-in tools to encourage students to ‘think finance’

·    Personal Finance examples demonstrate how students can apply managerial finance concepts, tools, and techniques to their own personal finance decisions.

·    Chapter-Opening notation boxes define the variables and acronyms used in the chapter and serve as a 'legend' for students' reference.

·    End-of-Chapter Excel Projects exercises help students gain important statistical skills and become more proficient in Excel. Excel exercises with an icon are assignable in MyLab Finance.

·    Concept Check questions at the end of each section enable students to test their understanding and target areas for further review.

·    End-of-chapter problems (and solutions) written by Jonathan Berk and Peter DeMarzo offer instructors the opportunity to assign accurate, first-rate problems that are consistent with chapter content.

o Data Cases present in-depth business scenarios with questions to guide students' analysis. Many questions involve the use of internet resources and Excel. Cases on bitcoin, JMP, and more have been added to the 5th Edition.

 

 

This package includes MyLab™ Finance, the teaching and learning platform that empowers you to reach every student. By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and often improves results for each student.

Pearson eText is a simple-to-use, mobile-optimized, personalized reading experience available within MyLab. It lets students highlight, take notes, and review key vocabulary all in one place — even when offline. Seamlessly integrated videos and other rich media engage students and give them access to the help they need, when they need it. Educators can easily share their own notes with students so they see the connection between their eText and what they learn in class.

Table of Contents

PART 1: INTRODUCTION

1. The Corporation and Financial Markets

2. Introduction to Financial Statement Analysis

3. Financial Decision Making and the Law of One Price

 

PART II: TIME, MONEY, AND INTEREST RATES

4. The Time Value of Money

5. Interest Rates

6. Valuing Bonds

 

PART III: VALUING PROJECTS AND FIRMS

7. Investment Decision Rules

8. Fundamentals of Capital Budgeting

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: ADVANCED 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. 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