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

An emphasis on modern theory blended with practice elevates students' financial decision making

Using the valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo have set the new canon for corporate finance textbooks. Corporate Finance: The Core, 5th Edition blends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager. Students have the opportunity to "practice finance to learn finance" by solving quantitative business problems like those faced by today's professionals. With built-in resources to help students master the core concepts, students develop the tools they need to make sound financial decisions in their careers.

Corporate Finance: The Core, 5th Edition 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 those who would like to use a text in a two semester, or more course, please see Corporate Finance, 5th Edition by the same authors.

This title is also available digitally as a standalone Pearson eText, or via MyLab Finance, which includes the Pearson eText. These options give students affordable access to learning materials, so they come to class ready to succeed.

JonathanBerk is the AP Giannini Professor of Finance at the Graduate School ofBusiness, Stanford University and is a Research Associate at the NationalBureau of Economic Research. Before coming to Stanford, he was the SylvanColeman Professor of Finance at Haas School of Business at the University ofCalifornia, Berkeley. Prior to earning his PhD, he worked as an Associate atGoldman Sachs (where his education in finance really began).

Professor Berk'sresearch interests in finance include corporate valuation, capital structure,mutual funds, asset pricing, experimental economics, and labor economics. Hiswork has won a number of research awards including the TIAA-CREF Paul A.Samuelson Award, the Smith Breeden Prize, Best Paper of the Year in TheReview of Financial Studies, and the FAME Research Prize. His paper, "ACritique of Size-Related Anomalies," was selected as one of the two best papersever published in The Review of Financial Studies. In recognitionof his influence on the practice of finance he has received theBernstein-Fabozzi/Jacobs Levy Award, the Graham and Dodd Award of Excellence,and the Roger F. Murray Prize.

He served asAssociate Editor of the Journal of Finance, Director of the WesternFinance Association, Academic Director of the Financial Management Association,is a Fellow of the Financial Management Association, and is a member of theadvisory board of the Journal of Portfolio Management.

Born inJohannesburg, South Africa, Professor Berk is married, with two daughters, andis an avid skier and biker.

Peter DeMarzo isthe Mizuho Financial Group Professor of Finance and current Vice President ofthe American Finance Association. He is also a Research Associate at theNational Bureau of Economic Research. He currently teaches MBA and PhD coursesin Corporate Finance and Financial Modeling. In addition to his experience atthe Stanford Graduate School of Business, Professor DeMarzo has taught at theHaas School of Business and the Kellogg Graduate School of Management, and hewas a National Fellow at the Hoover Institution.

Professor DeMarzoreceived the Sloan Teaching Excellence Award at Stanford, and the Earl F. CheitOutstanding Teaching Award at U.C. Berkeley.

Professor DeMarzohas served as an Associate Editor for The Review of Financial Studies, FinancialManagement, and the B.E. Journals of Economic Analysis andPolicy, as well as a Director of the American Finance Association. Hehas served as Vice President and President of the Western Finance Association.Professor DeMarzo's research is in the area of corporate finance, assetsecuritization, and contracting, as well as market structure and regulation.His recent work has examined issues of the optimal design of contracts andsecurities, and the influence of information asymmetries on stock prices andcorporate investment. He has received numerous awards including the WesternFinance Association Corporate Finance Award and the Barclays GlobalInvestors/Michael Brennan best-paper award from The Review of FinancialStudies.

Professor DeMarzowas born in Whitestone, New York, and is married with three boys.

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

An emphasis on modern theory blended with practice elevates students' financial decision making

Using the valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo have set the new canon for corporate finance textbooks. Corporate Finance: The Core, 5th Edition blends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager. Students have the opportunity to "practice finance to learn finance"by solving quantitative business problems like those faced by today's professionals. With built-in resources to help students master the core concepts, students develop the tools they need to make sound financial decisions in their careers.

1. The Corporation and Financial Markets

2. Introduction to Financial Statement Analysis

3. Financial Decision Making and the Law of One Price

4. The Time Value of Money

5. Interest Rates

6. Valuing Bonds

7. Investment Decision Rules

8. Fundamentals of Capital Budgeting

9. Valuing Stocks

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

14. Capital Structure in a Perfect Market

15. Debt and Taxes

16. Financial Distress, Managerial Incentives, and Information

17. Payout Policy

18. Capital Budgeting and Valuation with Leverage