Fundamentals of Corporate Finance, Second Edition

Preface

We have written Fundamentals of Corporate Finance for use in an introductory course in corporate finance at the undergraduate level. It is also suitable for advanced undergraduate, executive development, and traditional or executive MBA courses when supplemented with cases and outside readings. The main chapters in the book assume that students are well-versed in algebra and that they have taken courses in principles of economics and financial accounting. Optional chapters covering important economic and financial accounting concepts are included for students and instructors seeking such coverage.

Balance Between Conceptual Understanding and Computational Skills

We wrote this corporate finance text for one very important reason. We want to provide students and instructors with a book that strikes the best possible balance between helping students develop an intuitive understanding of key financial concepts and providing them with problem-solving and decision-making skills. In our experience, teaching students at all levels and across a range of business schools, we have found that students who understand the intuition underlying the basic concepts of finance are better able to develop the critical judgment necessary to apply financial tools to a broad range of real-world situations. An introductory corporate finance course should provide students with a strong understanding of both the concepts and tools that will help them in their subsequent business studies and their ...