Principles of Corporate Finance 12th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
Publisher: McGraw-Hill Education Language: English
ISBN-10: 1259144380
ISBN-13: 978-1259144387

Overview

Principles of Corporate Finance, 12th Edition is one of the most respected and widely used texts on modern corporate finance. It provides a thorough and balanced presentation of both the theory and practice of financial management. The book explains how managers use financial theory to solve real-world problems and make sound financial decisions that maximize firm value. This edition features updated examples, expanded discussions on risk management, and a modern focus on value-based financial strategies in a global context.

What You’ll Learn

1. Foundations of Corporate Finance
Understand the goals of financial management, the role of financial markets, and the fundamental principles of value creation and risk-return trade-offs.

2. Valuation and Capital Budgeting
Learn to value stocks, bonds, and investment projects using discounted cash flow techniques and capital budgeting models.

3. Risk, Return, and Portfolio Theory
Explore the relationship between risk and expected return, the Capital Asset Pricing Model (CAPM), and efficient portfolio construction.

4. Financing Decisions and Capital Structure
Analyze how companies choose between debt and equity financing, manage the cost of capital, and optimize capital structures.

5. Dividend Policy and Financial Strategy
Examine dividend payout decisions, share repurchases, and how financial strategies impact shareholder value.

6. Options, Futures, and Risk Management
Gain insights into financial derivatives, hedging strategies, and the use of options and futures to manage corporate risk.

7. Financial Planning and Working Capital Management
Learn how firms plan for growth, manage short-term assets and liabilities, and maintain liquidity.

8. Mergers, Acquisitions, and Corporate Restructuring
Study valuation techniques for mergers, the financial and strategic motives behind acquisitions, and restructuring practices.

Why This Book Matters

Principles of Corporate Finance, 12th Edition bridges academic finance theory with practical applications used by financial managers, investors, and analysts. It teaches readers how to approach real financial challenges systematically, using analytical tools grounded in sound financial logic.

Who Should Read This Book

• Students of finance, business administration, and economics

• Financial analysts and corporate finance professionals

• Managers and decision-makers seeking to enhance their financial understanding

• Educators and trainers in corporate finance and investment analysis

Key Topics Covered

• Principles of valuation and investment decision-making

• Risk management and portfolio theory

• Capital structure and cost of capital

• Dividend and payout policy

• Financial derivatives and risk hedging

• Corporate governance and financial ethics

• International finance and capital budgeting

• Mergers, acquisitions, and corporate restructuring

Conclusion

Principles of Corporate Finance, 12th Edition is a comprehensive and insightful guide to financial management. Its clear explanations, analytical approach, and practical relevance make it an essential resource for students and professionals who aim to understand and apply the principles that drive value creation in corporate finance.