Corporate Finance, Global Edition
Unknown
By: Jonathan Berk, Peter DeMarzo
No description available
AI Overview
The book "Corporate Finance, Global Edition" by Jonathan Berk and Peter DeMarzo is a comprehensive textbook in the field of corporate finance, designed to help students understand and apply financial principles in a practical manner. Here is a detailed overview of the book, including key themes, plot summary, and critical reception:
Key Themes
Core Financial Principles: The book emphasizes how core financial principles can improve individual financial decision-making. It connects three major topics—corporate finance, investments, and valuation—using the "Law of One Price" as a framework throughout the text.
Time, Money, and Interest Rates: The book covers the time value of money, interest rates, and valuing bonds, providing a foundational understanding of financial concepts.
Valuing Projects and Firms: It delves into investment decision rules, fundamentals of capital budgeting, and valuing stocks, helping students understand how to make informed investment decisions.
Risk and Return: The book explores capital markets, the pricing of risk, optimal portfolio choice, and estimating the cost of capital, providing insights into risk management and portfolio optimization.
Capital Structure: It examines capital structure in a perfect market, debt and taxes, financial distress, managerial incentives, and payout policy, helping students understand the complexities of corporate financing.
Advanced Valuation: The book covers advanced topics such as capital budgeting with leverage, valuation and financial modeling, and real options, providing advanced tools for financial analysis.
Options and Long-Term Financing: It includes chapters on financial options, option valuation, real options, raising equity capital, debt financing, and leasing, offering comprehensive coverage of long-term financial strategies.
Short-Term Financing and Special Topics: The book also covers working capital management, short-term financial planning, mergers and acquisitions, corporate governance, risk management, and international corporate finance, addressing various aspects of corporate finance.
Plot Summary
The book does not have a narrative plot in the traditional sense. Instead, it is structured as a textbook with each chapter focusing on a specific topic within the field of corporate finance. The chapters are designed to be self-contained, allowing students to focus on individual topics without needing to follow a continuous narrative.
Critical Reception
The book has been well-received in academic circles for its comprehensive coverage of corporate finance principles. Here are some key points from the critical reception:
Practical Perspective: The book is praised for its practical perspective, which helps students understand how financial principles are applied in real-world scenarios.
Accessible Writing Style: The authors are commended for their clear and accessible writing style, making complex financial concepts understandable for a broad range of readers.
Innovative Framework: The use of the "Law of One Price" as a unifying framework is seen as innovative and effective in connecting different aspects of corporate finance.
Comprehensive Coverage: The book is noted for its comprehensive coverage of both time-tested principles and the latest advancements in corporate finance, making it a valuable resource for students and practitioners alike.
Pedagogical Tools: The inclusion of end-of-chapter problems and case studies is seen as a significant pedagogical tool, helping students to apply theoretical concepts to practical scenarios.
Overall, "Corporate Finance, Global Edition" by Jonathan Berk and Peter DeMarzo is a highly regarded textbook in the field of corporate finance, known for its practical approach, comprehensive coverage, and accessible writing style.