Corporate Finance: The Core, Global Edition, 4th edition

Published by Pearson (February 5, 2021) © 2021

  • Jonathan Berk Stanford University
  • Peter DeMarzo Stanford University

Title overview

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

An Emphasis on Core Financial Principles to Elevate Individuals’ Financial Decision Making

Berk and DeMarzo's Corporate Finance uses a unifying valuation framework, the Law Of One Price, to present the core content instructors expect, the new ideas they want, and the pedagogy their students need to succeed. 

Corporate Finance: The Core fits programs and individual professors who desire a streamlined book that is specifically tailored to the topics covered in the first one-semester course. For programs and professors who would like to use a text in a two semester, or more, sequence, please see Corporate Finance, the 31-chapter book also by Jonathan Berk and Peter DeMarzo.

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Table of contents

  • PART 1: INTRODUCTION
  • 1. The Corporation
  • 2. Introduction to Financial Statement Analysis
  • 3. Financial Decision Making and the Law of One Price
  • PART 2: TIME, MONEY, AND INTEREST RATES
  • 4. The Time Value of Money
  • 5. Interest Rates
  • 6. Valuing Bonds
  •  PART 3: VALUING PROJECTS AND FIRMS
  • 7. Investment Decision Rules
  • 8. Fundamentals of Capital Budgeting
  • 9. Valuing Stocks
  •  PART 4: 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 5: CAPITAL STRUCTURE
  • 14. Capital Structure in a Perfect Market
  • 15. Debt and Taxes
  • 16. Financial Distress, Managerial Incentives, and Information
  • 17. Payout Policy
  •  PART 6: ADVANCED VALUATION
  • 18. Capital Budgeting and Valuation with Leverage
  • 19. Valuation and Financial Modeling: A Case Study

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