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Fundamentals of Corporate Finance
This is the eBook of the printed book and may not include any media, website access codes, or print supplements that may come packaged with the bound book.
For undergraduate courses in corporate finance or financial management.
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 data, examples, and exercises, the 5th 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.
Personalize learning with MyLab Finance
By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student.
You are purchasing an access card only. Before purchasing, check with your instructor to confirm the correct ISBN. Several versions of the MyLab™ and Mastering™ platforms exist for each title, and registrations are not transferable. To register for and use MyLab or Mastering, you may also need a Course ID, which your instructor will provide.
If purchasing or renting from companies other than Pearson, the access codes for the MyLab platform may not be included, may be incorrect, or may be previously redeemed. Check with the seller before completing your purchase.
For undergraduate courses in corporate finance or financial management.
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 data, examples, and exercises, the 5th 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.
Personalize learning with MyLab Finance
By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student.
You are purchasing an access card only. Before purchasing, check with your instructor to confirm the correct ISBN. Several versions of the MyLab™ and Mastering™ platforms exist for each title, and registrations are not transferable. To register for and use MyLab or Mastering, you may also need a Course ID, which your instructor will provide.
If purchasing or renting from companies other than Pearson, the access codes for the MyLab platform may not be included, may be incorrect, or may be previously redeemed. Check with the seller before completing your purchase.
800 pages, Kindle Edition
First published May 1, 2011
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Displaying 1 - 4 of 4 reviews
June 21, 2021
Summary: A great book with examples. I would consider it for sure if trying to get the basics of corporate finance down. It does have some bonus stuff on the equity capital markets. The stuff on bonds is a bit less interesting.
I saw this in my laundry room and thought it might make for a good review. It's always interesting to see what people are learning in formal classes. I ended up being fairly impressed. It is definitely by practitioners for practitioners. The book does an excellent job of including interviews from people that are newly out of uni and sage old dogs that have been in the business for a while.
Dork that I am, it was nice to review the stats and all the different ways that you are taught to think about a company's financials in the way of their health, value, and profitability. I had forgotten about the Dupont identity as I personally don't use it quite as much. But I'm actually quite glad to review it as I don't think I fully appreciated it when I was first learning it.
I do think his section on Systematic and Non-Systematic risk was a bit confusing. This might be because I don't just use CAPM, which I think is where he's coming from. His terminology is of course correct, it's just that when you start to add more variables, the point of view for what can and cannot be diversified and how you think about what the errors mean is very different. So in other words unsystematic risk - in this framework - is diversify-able, and systematic risk (market risk) is not diversify-able.
So when he says about unsystematic risk: "Because investors can eliminate unsystematic risk 'for free' by diversifying their portfolio, they will not require (nor deserve) a reward or risk premium for bearing it." Kinda, but not really. Here, you are using CAPM with no alpha due to asset selection. Then the idea that you cannot diversify out systematic risk (things like market crashes, etc), but this assumes no ability to short or otherwise hedge the book. As a result, I got a bit confused on the terms at first and then remembered this is from 2010 and although things had already gotten more advanced at that point by a lot, this was (and may still be) the way it was taught.
Otherwise, I really love all the anecdotes and commentary. I forgot about the ways of thinking about put-call parity from the perspective of the bond markets. IMO, it's described from the point of view of the treasury function in a corp. Still, I'm def a bit weaker here than I realized so it's worth getting a bit smarter just to shore up this side of my knowledge. They do a good job of describing FX hedging in the context of the of Corp deals and also as a part of the treasury function.
The black scholes section on options is surprisingly easy to understand and doesn't get too deep in ways that don't matter to corp finance.
It's interesting that they don't do the DPOs that have become popular in the current day. In fairness, I really didn't see them until much later than this book was written. At the same time, these writers seem super competent. Would love to hear their thoughts on it. Possibly if you're considering this text book, just preview a later version. I am using Version 2.
I saw this in my laundry room and thought it might make for a good review. It's always interesting to see what people are learning in formal classes. I ended up being fairly impressed. It is definitely by practitioners for practitioners. The book does an excellent job of including interviews from people that are newly out of uni and sage old dogs that have been in the business for a while.
Dork that I am, it was nice to review the stats and all the different ways that you are taught to think about a company's financials in the way of their health, value, and profitability. I had forgotten about the Dupont identity as I personally don't use it quite as much. But I'm actually quite glad to review it as I don't think I fully appreciated it when I was first learning it.
I do think his section on Systematic and Non-Systematic risk was a bit confusing. This might be because I don't just use CAPM, which I think is where he's coming from. His terminology is of course correct, it's just that when you start to add more variables, the point of view for what can and cannot be diversified and how you think about what the errors mean is very different. So in other words unsystematic risk - in this framework - is diversify-able, and systematic risk (market risk) is not diversify-able.
So when he says about unsystematic risk: "Because investors can eliminate unsystematic risk 'for free' by diversifying their portfolio, they will not require (nor deserve) a reward or risk premium for bearing it." Kinda, but not really. Here, you are using CAPM with no alpha due to asset selection. Then the idea that you cannot diversify out systematic risk (things like market crashes, etc), but this assumes no ability to short or otherwise hedge the book. As a result, I got a bit confused on the terms at first and then remembered this is from 2010 and although things had already gotten more advanced at that point by a lot, this was (and may still be) the way it was taught.
Otherwise, I really love all the anecdotes and commentary. I forgot about the ways of thinking about put-call parity from the perspective of the bond markets. IMO, it's described from the point of view of the treasury function in a corp. Still, I'm def a bit weaker here than I realized so it's worth getting a bit smarter just to shore up this side of my knowledge. They do a good job of describing FX hedging in the context of the of Corp deals and also as a part of the treasury function.
The black scholes section on options is surprisingly easy to understand and doesn't get too deep in ways that don't matter to corp finance.
It's interesting that they don't do the DPOs that have become popular in the current day. In fairness, I really didn't see them until much later than this book was written. At the same time, these writers seem super competent. Would love to hear their thoughts on it. Possibly if you're considering this text book, just preview a later version. I am using Version 2.
Read
May 7, 2020I read selections of this for a financial economics class.
March 3, 2022
I am a professor and it helped me a lot to build content and create exercises for the students.
November 26, 2016
As an MBA student it really helps me with a lot of information and guidance.. however im not good at numbers..there is a recomanded chapter for those who want to start a new business in accordance with finance principals and methods..
Displaying 1 - 4 of 4 reviews