Corporate Finance, Global Edition

Brief 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 2: Time, Money, and Interest Rates

The Time Value of Money

Interest Rates

Valuing Bonds

PART 3: Valuing Projects and Firms

Investment Decision Rules

Fundamentals of Capital Budgeting

Valuing Stocks

PART 4: Risk and Return

Capital Markets and the Pricing of Risk

Optimal Portfolio Choice and the Capital Asset Pricing Model

Estimating the Cost of Capital

Investor Behavior and Capital Market Efficiency

PART 5: Capital Structure

Capital Structure in a Perfect Market

Debt and Taxes

Financial Distress, Managerial Incentives, and Information

Payout Policy

PART 6: Advanced Valuation

Capital Budgeting and Valuation with Leverage

Valuation and Financial Modeling: A Case Study

PART 7: Options

Financial Options

Option Valuation

Real Options

PART 8: Long-Term Financing

Raising Equity Capital

Debt Financing

Leasing

PART 9: Short-Term Financing

Working Capital Management

Short-Term Financial Planning

PART 10: Special Topics

Mergers and Acquisitions

Corporate Governance

Risk Management

International Corporate Finance

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 the Haas School of Business at the University of California, Berkeley. Prior to earning his PhD, he worked as an Associate at Goldman Sachs (where his education in finance really began).

Professor Berk's research interests in finance include corporate valuation, capital structure, mutual funds, asset pricing, experimental economics, and labor economics. His work has won a number of research awards including the Stephen A. Ross Prize in Financial Economics, TIAA-CREF Paul A. Samuelson Award, the Smith Breeden Prize, Best Paper of the Year in The Review of Financial Studies, and the FAME Research Prize. His paper, A Critique of Size-Related Anomalies, was selected as one of the 2 best papers ever published in The Review of Financial Studies. In recognition of his influence on the practice of finance he has received the Bernstein-Fabozzi/Jacobs Levy Award, the Graham and Dodd Award of Excellence, and the Roger F. Murray Prize. He served 2 terms as an Associate Editor of the Journal of Finance, and a term as a director of the American Finance Association, the Western Finance Association, and academic director of the Financial Management Association. He is a Fellow of the Financial Management Association and a member of the advisory board of the Journal of Portfolio Management.

Born in Johannesburg, South Africa, Professor Berk has 2 daughters, and is an avid skier and biker.

Peter DeMarzo is the John G. McDonald Professor of Finance at the Graduate School of Business, Stanford University. He is the former President of the American Finance Association and a Research Associate at the National Bureau of Economic Research. He teaches MBA and PhD courses in