Fundamentals of Corporate Finance continues on its tradition of excellence that has earned it its status as a market leader. The rapid and extensive changes in financial markets and instruments, has placed new burdens on the teaching of Corporate Finance in Canada. As a result, every chapter has been updated to provide the most current examples that reflect Corporate Finance in today’s world. Our text is written with one strongly held principle that Corporate Finance should be developed and taught in terms of a few integrated powerful ideas – Emphasis on Intuition, Unified Valuation Approach and Managerial Emphasis.
An Emphasis on Intuition. We are always careful to separate and explain the principles at work on an intuitive level before launching into any specifics. The underlying ideas are discussed first in very general terms and then by way of examples that illustrate in more concrete terms how a financial manager might proceed in a given situation.
A Unified Valuation Approach. We treat net present value (NPV) as the basic concept underlying corporate finance. Many texts stop well short of consistently integrating this important principle. The most basic notion?that NPV represents the excess of market value over cost?tends to get lost in an overly mechanical approach to NPV that emphasizes computation at the expense of understanding. Every concept covered is firmly rooted in valuation, and care is taken throughout the text to explain how particular decisions have valuation effects.
These three themes work together to provide a sound foundation, and a practical and workable understanding of how to evaluate and make financial decisions.