Corporate Finance, Global Edition, 6th edition

Published by Pearson (2 August 2024) © 2024

  • Jonathan Berk Stanford University
  • Peter DeMarzo Stanford University
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Title overview

Corporate Finance, Global Edition provides a practical and rigorous introduction to the principles of financial decision-making, equipping students with the tools needed to analyse investments, value businesses, and create long-term value. Built around the powerful concept of the Law of One Price, the text connects financial theory to real-world practice, helping students understand how financial markets work and how managers make decisions in complex business environments. Clear explanations, realistic examples, and a strong focus on valuation ensure students develop a solid foundation in modern corporate finance.

Designed to bridge theory and application, the text encourages students to think and act like financial professionals by tackling the types of challenges faced by organisations today. From capital budgeting and risk management to capital structure, corporate governance, and international finance, students gain both analytical and practical skills. Real-world examples, worked problems, case-based learning, and contemporary discussions of emerging financial issues help learners understand how finance shapes strategic business decisions across global markets. 

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Table of contents

  • PART 1: INTRODUCTION
  • The Corporation and Financial Markets
  • Introduction to Financial Statement Analysis
  • 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

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