The latest edition in the Principles of Corporate Finance dynasty, the 14th edition continues in its tradition of showing how theory applies to the very practical problems and decisions faced by financial managers. I'm currently working on my MBA. I graduated with a 4.0 and a 3.79 for my two undergraduate degrees; I work hard for my grades. In all my currently nine years of higher education I've never come across a more poorly written textbook. There is a lot of math involved, but formulas are rarely clearly given, and algebraic rearrangements of the formulas are interspersed without comment or warning. Examples are wordy and difficult to follow. The index misses many important concepts and the glossary refuses to include any sort of formula to assist with calculations. understand and explain the relevance, facts and role of the payout policy, and calculate how payouts affect the valuation of securities McGraw Hill also has online assignments that correlate with the text. Or they are supposed to. The questions jump around from chapter to chapter (60% of questions from chapter 1's assignment can't be solved without having read chapter 2, for example). The questions that do correlate only do so tenuously; the book teaches you that 1 + 1 = 2, but the assignment questions ask 3x * (28

Detailed coverage of contemporary topics such as Efficient Markets, Peer-to-Peer Lending, Crowdfunding, Behavioural Finance, Ethical Behaviour, Hidden Leverage and Managing International Risks Impeccably systematized. . . . Tirole's book will have a prominent place in my library, and I am sure that I shall have plenty of occasions to refer to its authority in the future. It fully deserves a 'buy' rating."—Rudi Bogni, Times Higher Education Supplement Principles of Corporate Finance is a reference work on the corporate finance theory edited by Richard Brealey, Stewart Myers, Franklin Allen, and Alex Edmans. [1] [2] The book is one of the leading texts that describes the theory and practice of corporate finance. It was initially published in October 1980 and now is available in its 14th edition. Principles of Corporate Finance has earned loyalty both as a classroom tool and as a professional reference book.

Learning and Teaching

Looking at what financial managers do and why, the book aims to give readers a solid understanding of theory so that they know what questions to ask when times change and new problems need to be analyzed, eventually standing as a reference and a guide to help them make financial decisions, not just study them.

This new edition welcomes Alex Edmans to the author team, whose global authority and expertise in corporate governance, responsible business and behavioural finance have been invaluable in bolstering coverage of these topics. A new chapter is entirely dedicated to the subject of balancing shareholder value with promoting the interests of all stakeholders, the potential conflicts inherent in this, and how a responsible business should behave. Financing is one of the crucial tasks of a corporate finance manager. A better financing decision will lead you to low-cost financing which optimizes funds flow. This principle guides a manager to evaluate all the available alternatives to ensure the minimization of the cost of capital with an optimal risk. Investment Principle A magnificent new book. . . . This is far more than the mere textbook it purports to be; it has a plausible claim to be the first truly comprehensive overview of corporate finance by an economist."— The Economist This is a remarkable book. Theoretical work in corporate finance over the past thirty or so years has yielded a bewildering array of individual models, yet Tirole manages to give a beautifully clear and unified treatment of the field. There is a real coherence both within and across the chapters, and one is in many places able to see the close connection between topics that are ordinarily treated as being distinct. The book will no doubt be the standard reference for researchers and students in corporate finance for many years to come."—Jeremy C. Stein, Harvard UniversityProfessor of Finance and Economics, Imperial College London, and Nippon Life Professor of Finance at the Wharton School of the University of Pennsylvania. He is past president of the American Finance Association, Western Finance Association, Society for Financial Studies, Financial Intermediation Research Society, and Financial Management Association. His research has focused on financial innovation, asset price bubbles, comparing financial systems, and financial crises. He is executive director of the Brevan Howard Centre for Financial Analysis at Imperial College Business School. Equity offerings: understand venture capital and equity issuance in the public market; perform valuation with multiple financing rounds; initial public offerings and underpricing; winners’ curse problem. There have been several changes to chapter structure as well as expanded discussion of issues that have grown in importance since the previous edition including behavioural finance, and financial innovation driven by AI, big data and cloud computing. It has also grown to take a more international focus, to bring in more information and perspectives on major developing economies such as China and India, and looking at how financing and governance systems differ around the world. Jean Tirole, one of the preeminent economists of his generation, has put together the first integrated treatise of modern corporate finance theory. He succeeds in unifying the dispersed theories on financial and ownership structure, building on his excellence in information economics and contract theory. The book should be required reading for any Ph.D. course in corporate finance."—Arnoud W. A. Boot, University of Amsterdam and Centre for Economic Policy Research

Risk management: understand why and how companies manage risk; cost of hedging; covered and uncovered interest rate parity. The field of corporate finance has developed rapidly and extensively in the last twenty years, but those who want to teach it face a barrier: the absence of a widely accepted textbook. Jean Tirole's book fills that gap. Applying his celebrated analytical and expositional skills, Tirole synthesizes and unifies the field in a clear and accessible manner, emphasizing particularly the connections between corporate finance and contract theory and the role of incentives and control in firms' financial decisions. The result is a book that will be an important resource for students and teachers alike."—Oliver Hart, Andrew E. Furer Professor of Economics, Harvard UniversityThe book covers a wide range of aspects relevant to corporate finance, illustrated by examples and case studies. The text starts by explaining basic finance concepts of value, risk, and other principles. Then the issues become more and more complex, from project analysis and net present value calculations to debt policy and option valuation. Other discussed topics include stakeholder theory, corporate governance, mergers and acquisitions, principal–agent problems, credit risk, working capital management, etc. The book concludes with a discussion on the current limitations of corporate finance theory. Real options: understand what real options are and why they are important in project valuation; understand and calculate the source of option value; three types of real options: options to abandon/expand/wait. Now in its Twelfth Edition, Principle of Corporate Finance continues to be one of the most comprehensive and authoritative presentations of financial theory and practice available. The book has been substantially revised and now reflect some recent developments in the financial markets or company practice. It also aims to explain aspects of theory and concepts from an Indian perspective. This is a leading text worldwide and has proven to be useful to students and financial managers alike. Understand the mathematics of portfolios and how risk affects the value of the asset in equilibrium under the fundaments asset pricing paradigms (CAPM and APT)