Corporate Finance 2/e

　　Using the unifying valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo set the new standard for corporate finance textbooks. Corporate Finance blends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager. With this ideal melding of the core with modern topics, innovation with proven pedagogy, Berk and DeMarzo establish the new canon in finance.

　　New To This Edition

　　NEW! IFRS, Fully revised chapter 2 – Introduction to Financial Statement Analysis – to incorporate International Financial Reporting Standards (IFRS). Changes to this chapter include:

　　Coverage of International Financial Reporting Standards (IFRS) and the differences with US GAAP

　　New balance sheets, cash flow statements and income statements following IFRS format

　　Extended example on Nokia running throughout the chapter using real data

　　Mothercare, Heinz, and Vodafone used as examples

　　NEW! Risk and Return. The introductory chapter to Part IV/Chapter 10 on Risk and Return, remains largely unchanged. Instead of spreading the theoretical derivation of the CAPM over two chapters, the authors have combined this material into one chapter, Chapter 11.

　　NEW! Chapter 12,“Estimating the Cost of Capital.”Written in response to users who wanted a single place in the book that explained how to calculate the cost of capital, the chapter is a practical guide to implementing the risk-return model derived in the previous two chapters.

　　NEW! Expanded Chapter 13,“Investor Behavior and Capital Market Efficiency.” This chapter presents compelling evidence on investor behavior and examines how this behavior impacts the efficiency of the market portfolio.

　　NEW! Financial Crisis Boxes. To reflect the reality of the financial crisis of 2007, Financial Crisis Boxes—twenty-one in total—illustrate and analyze key details about the financial crisis, ranging from Madoff s fraud to Lehman Brothers bankruptcy.

　　New and Updated Practitioner Interviews. This text includes both updated interviews with high-level practitioners that incorporate an “inside” perspective on the financial crisis of 2007, and new interviews featuring Frederic S. Mishkin, former Federal Reserve Board governor; David Holland, Senior Vice President and Treasurer of Cisco; and Shelagh Glaser, Director for Intel s Mobility Group.

　　Two-hundred New Problems and MyFinanceLab Upgrade. Jonathan Berk and Peter DeMarzo wrote over two-hundred new problems for the Second Edition. Every problem is now available in MyFinanceLab, the groundbreaking homework and tutorial system, along with context-dependent hints based on prior user data.

　　UPDATED! Chapter 1, The Corporation: now includes global perspectives on corporations and organisational forms.

　　NEW! Three new Data Cases providing examples on Danish company Novo Nordisk, and Nokia. (chapters 7, 14 and 15)

　　Jonathan Berk, Stanford University
　　Peter DeMarzo, Stanford University

Part I: Introduction
1 The Corporation
2 Introduction to Financial Statement Analysis

Part II: Tools
3 Arbitrage and Financial Decision Making
4 The Time Value of Money
5 Interest Rates

Part III: Basic Valuation
6 Investment Decision Rules
7 Fundamentals of Capital Budgeting
8 Valuing Bonds
9 Valuing Stocks

Part IV: 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 V: Capital Structure
14 Capital Structure in a Perfect Market
15 Debt and Taxes
16 Financial Distress, Managerial Incentives, and Information
17 Payout Policy

Part VI: Valuation
18 Capital Budgeting and Valuation with Leverage
19 Valuation and Financial Modeling: A Case Study

Part VII: Options
20 Financial Options
21 Option Valuation
22 Real Options

Part VIII: Long-Term Financing
23 The Mechanics of Raising Equity Capital
24 Debt Financing
25 Leasing

Part IX: Short-Term Financing
26 Working Capital Management
27 Short-Term Financial Planning

Part X: Special Topics
28 Mergers and Acquisitions
29 Corporate Governance
30 Risk Management
31 International Corporate Finance