Fundamentals of Corporate Finance

PART 1: INTRODUCTION

1. Corporate Finance and the Financial Manager
2. Introduction to Financial Statement Analysis

PART 2: INTEREST RATES AND VALUING CASH FLOWS

Time Value of Money: An Introduction

Time Value of Money: Valuing Cash Flow Streams

Interest Rates

Bonds

Stock Valuation

PART 3: VALUATION AND THE FIRM

Investment Decision Rules

Fundamentals of Capital Budgeting

Stock Valuation: A Second Look

PART 4: RISK AND RETURN

Risk and Return in Capital Markets

Systematic Risk and the Equity Risk Premium

The Cost of Capital

PART 5: LONG-TERM FINANCING

Raising Equity Capital

Debt Financing

PART 6: CAPITAL STRUCTURE AND PAYOUT POLICY

Capital Structure

Payout Policy

PART 7: FINANCIAL PLANNING AND FORECASTING

Financial Modeling and Pro Forma Analysis

Working Capital Management

Short-Term Financial Planning

PART 8: SPECIAL TOPICS

Option Applications and Corporate Finance

Mergers and Acquisitions

International Corporate Finance

CHAPTERS ON THE WEB

1. Leasing
2. Insurance and Risk Management
3. Corporate Governance

About our authors

Jonathan Berk, Stanford University, 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. 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.

Peter DeMarzo, Stanford University, is the Mizuho Financial Group Professor of Finance and former Senior Associate Dean for Academic Affairs at the Stanford Graduate School of Business. He is also a Research Associate at the National Bureau of Economic Research. He currently teaches MBA and PhD courses in corporate finance and financial modeling. In addition to his experience at the Stanford Graduate School of Business, Professor DeMarzo has taught at the Haas School of Business and the Kellogg Graduate School of Management, and he was a National Fellow at the Hoover Institution.

Jarrad Harford, University of Washington, is the Marion B. Ingersoll Professor of Finance at the University of Washington. Prior to Washington, Professor Harford taught at the Lundquist College of Business at the University of Oregon. He received his PhD in Finance with a minor in Organizations and Markets from the University of Rochester. Harford has taught the core undergraduate finance course, Business Finance, for over 16 years, as well as an elective in mergers and acquisitions, and “Finance for Non-financial Executives” in the executive education program.