Fundamentals of Corporate Finance
Jonathan Berk; Peter DeMarzo; Jarrad HarfordSinopsis ebook
Valuation Principle Connection What is corporate finance No matter what your role in a corporation an understanding of why and how financial decisions are made is essential Even the best and most innovative business ideas require an investment of resources The tools of finance allow you to assess whether that investment is worthwhile how it might be improved and how it might be funded And while the main focus of this book is how to make optimal corporate financial decisions along the way you will learn skills that will guide you in your own personal financial decisions as well In Part 1 we lay the foundation for our study of corporate finance In Chapter 1 we begin by introducing the corporation and related business forms We then examine the role of financial managers and outside investors in decision making for the firm To make optimal decisions a decision maker needs information As a result in Chapter 2 we review and analyze an important source of information for corporate decision making the firm s accounting statements These chapters will introduce us to the role and objective of the financial manager and some of the information the financial manager uses in applying the Valuation Principle to make optimal decisions Then in Part 2 we will introduce and begin applying the Valuation Principle