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Corporate finance 13th ed
The teaching and the practice of corporate finance are more challenging and exciting than ever before. Among other things, the first two decades of the twenty-first century brought us the global financial crisis of 2008–2009 and the COVID-19 pandemic of 2020–2021. Both shocks led to major corporate restructurings, and we still routinely see announcements in the financial press about takeovers, junk bonds, financial restructuring, initial public offerings, bankruptcies, and derivatives. In addition, there are the new recognitions of “real” options, private equity and venture capital, subprime mortgages, bailouts, and credit spreads. As we have learned, the world’s financial markets are more integrated than ever before. Both the theory and practice of corporate finance have been moving ahead with uncommon speed, and our teaching must keep pace.
These developments have placed new burdens on the teaching of corporate finance. On one hand, the changing world of finance makes it more difficult to keep materials up to date. On the other hand, the teacher must distinguish the permanent from the temporary and avoid the temptation to follow fads. Our solution to this problem is to emphasize the modern fundamentals of the theory of finance and make the theory come to life with contemporary examples. Increasingly, many of these examples are outside the United States.
All too often, the beginning student views corporate finance as a collection of unrelated topics that are unified largely because they are bound together between the covers of one book. We want our book to embody and reflect the main principle of finance: Namely, good financial decisions will add value to the firm and to shareholders and bad financial decisions will destroy value. The key to understanding how value is added or destroyed is cash flows. To add value, firms must generate more cash than they use. We hope this simple principle is manifest in all parts of this book.
The Intended Audience of This Book
This book has been written for the introductory courses in corporate finance at the MBA level and for the intermediate courses in many undergraduate programs. Some instructors will find our text appropriate for the introductory course at the undergraduate level as well.
We assume that most students either will have taken, or will be concurrently enrolled in, courses in accounting, statistics, and economics. This exposure will help students understand some of the more difficult material. However, the book is self-contained, and a prior knowledge of these areas is not essential. The only mathematics prerequisite is basic algebra.
New to the 13th Edition
There are five primary areas of change reflected in the 13th edition:
Personal taxes. Entities other than C corporations still face progressive taxation at the personal tax level. Discussion of marginal versus average tax rates is examined.
COVID-19. The 2020–2021 COVID-19 pandemic affected corporate operations in numerous ways, including capital budgeting, long-term and short-term financial planning, capital structure, supply chain management, and risk management. We have incorporated discussions around these shocks and their impact on different types of corporations.
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Discussion of levered versus unlevered beta. We have added a more in-depth discussion of levering and unlevering beta, including a discussion of when to unlever beta and when not to do so.
Venture capital. We added a much updated and expanded discussion of entrepreneurship and venture capital, including the different venture capital funding stages.
Comparables valuation for stocks. We added an expanded discussion of comparable valuation for stocks, including price ratios for various industries.
With the 13th edition, we’ve also included coverage of:
Tax advantages of share repurchases.
Empirical evidence of behavioral challenges to market efficiency.
Fintech.
Updated discussion of executive stock options.
More detailed discussion of the Chaneg to WACC approach.
Cross-selling, leveraged recapitalizations, and debt overhang.
Using forward rates to implement the home currency approach.
In addition, each chapter has been updated and, where relevant, “internationalized.” We try to capture the excitement of corporate finance with current examples, chapter vignettes, and openers. Spreadsheet applications are spread throughout.
Finally, perhaps the biggest change for the 13th edition is the addition, for the first time, of a special contributor, Professor Kelly Shue of Yale University. Kelly made a number of suggestions that led to more complete coverage, sharpened exposition, and new insights on a variety of subjects.
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Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| 658 15 ROS c | PSB lt.1 - B. Wajib | 1 |
| Penerbit | New York: Mc Graw Hill 2022 |
|---|---|
| Edisi | 13 |
| Subjek | Financial management Corporate finance |
| ISBN/ISSN | 9781260772388 |
| Klasifikasi | 658 15 |
| Deskripsi Fisik | xxii, 994 p. : ill. ; 28 cm |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |