Corporate Finance: The Core

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 instructors who desire a streamlined book that is specifically tailored to the topics covered in the first one-semester course. For instructors 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.PART I. INTRODUCTION 1. The Corporation 2. Introduction to Financial Statement Analysis 3. The Law of One Price and Financial Decision Making PART II. TIME, MONEY, AND INTEREST RATES 4. The Time Value of Money 5. Interest Rates 6. Valuing Bonds PART III. VALUING PROJECTS AND FIRMS 7. Investment Decision Rules 8. Fundamentals of Capital Budgeting 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. ADVANCED VALUATION 18. Capital Budgeting and Valuation with Leverage 19. Valuation and Financial Modeling: A Case Study