Fundamentals of Corporate Finance, 6th Edition
By Robert Parrino, Thomas Bates, Stuart L. Gillan, and David S. Kidwell
Fundamentals of Corporate Finance, 6th Edition equips students with the essential concepts of corporate finance through a clear and practical approach. With a strong emphasis on computational skills, this course helps learners build confidence in financial decision-making, sharpen their problem-solving abilities, and develop a deep understanding of real-world financial strategies. Using an intuitive approach, students develop a richer understanding of corporate finance concepts while also enabling them to develop the critical judgments necessary to apply financial tools in real-world decision-making situations. Corporate Finance, 6e provides the depth and rigor expected in business and finance courses while ensuring the material remains clear and accessible for students. Paired with WileyPLUS, students have access to adaptive practice tools, problem-solving support, and homework and video resources that will enhance their learning journey.
Schedule a Demo Request Instructor AccountWant to learn more about WileyPLUS? Click Here
Students can master corporate finance concepts with adaptive assignments and review tutorials:
Adaptive Assignments, powered by Knewton, support instructors defining assignments by intent, and students to learn course concepts efficiently so they can succeed in their course and beyond. By continuously adapting to each student’s needs and providing achievable goals with just-in-time instruction, adaptive assignments close knowledge gaps to accelerate learning.
Chapter 0 Math and Skills and Accounting Review: Students get plenty of adaptive review and practice with essential math topics they need to master corporate finance. Built to serve as a refresher of remedial content, reading content, algorithmic practice.
Figuring Finance Interactive Tutorials are designed to improve student retention and help them connect difficult math and finance concepts.
Step-by-step tutorials help students learn the concepts and succeed in class:
Solution Walkthrough Lightboard Videos let students watch step-by-step walkthroughs of problems that look and feel just like your course homework. These videos break down complex questions so students can master key concepts with confidence.
Learn by Doing Interactive Tutorials give students hands-on practice with quantitative problems. These interactive tutorials walk students through solutions step-by-step, helping them build problem-solving skills and financial intuition along the way.
Narrated Presentation Videos are perfect for online courses, flipped classrooms, or student study sessions. Each course section includes narrated videos from a corporate finance instructor walking through PowerPoint slides.
Students can apply financial concepts and practice their Excel skills:
Gradable Excel Questions help students sharpen their Excel skills while solving real finance problems! These assignable questions require students to apply both financial knowledge and the right Excel functions to earn credit—reinforcing practical, job-ready skills.
Excel Walkthrough Videos & Templates support students navigating Excel with step-by-step video tutorials. Students get clear demonstrations of essential Excel functions, plus downloadable templates for end-of-chapter problems to practice and apply what they’ve learned.
Using an intuitive approach, students gain experience in financial decision making:
Concepts in Action Videos: These videos feature scenarios involving real-world companies to reinforce financial concepts, with assignable questions available per video.
Building Intuition Boxes: These boxes cover the most important concepts in corporate finance along with an intuitive example or explanation to help students “get” the concept and develop financial intuition.
Decision-Making Examples: These examples, which emphasize the decision-making process rather than computation, provide students with experience in financial decision making by outlining a scenario and asking the student to make a decision based on the information presented.
The Before You Go On Questions: Available at the end of each textbook section and assignable in your WileyPlus course, giving you another opportunity to encourage student practice and engagement with corporate finance.
What’s New to This Course
- Additional Gradable Excel Questions have been added to this course.
- The Learning Objectives at the beginning of each chapter have been revised to reflect the important content in the associated sections of the chapters.
- New Building Intuition boxes have been added where appropriate, and existing Building Intuition boxes have been edited to ensure clarity.
- All Learning by Doing Applications have been reviewed and, where appropriate, updated or replaced.
- All Decision-Making Examples have been reviewed and updated where necessary.
- The Summary of Learning Objectives and Key Equations at the end of each chapter have been updated to reflect changes in the chapter text and to improve the pedagogical value of these features.
- All financial market and business data updated, including interest rates, risk premiums, and exchange rates.
- Updated exhibits, examples, and problem sets reflecting recent market conditions.
- New Chapter-Opening Vignettes using real-world events from 2023 and 2024.
- Revised tax rate discussions reflecting the 2017 federal tax law, including blended corporate tax rates and their impact.
- Stand-alone Appendix B analyzing corporate tax policy impacts on cash flow, depreciation, interest deductibility, and capital costs.
- Refined and Extended WileyPLUS Question Sets. The total question count has increased to 4850 which includes many of the end-of-chapter, self-study, and self-test questions from the text.
- Bloomberg Video Questions are newly added to this edition. These questions assess student understanding and comprehension of current financial news based on thoughtfully selected Bloomberg videos integrated throughout the course.
- The Before You Go On Questions included at the end of each textbook section are now also available to instructors as assignable questions in WileyPLUS, to provide instructors another way to incentivize student practice and engagement with the textbook content.
- For Instructors a customized set of materials have been designed to engage students and aid in comprehension, critical thinking, and application of text concepts. These resources are designed to provide a “turnkey” solution for instructors working within diverse learning environments and include:
- Updated Instructor Manual / Solutions Manual that includes chapter-based annotated lecture outlines by learning objective, and solutions and answers to questions in each chapter.
- Lecture PowerPoint Presentation Slides which include teaching notes and offer a series of slides for each chapter incorporating key points from the text and including text illustrations as appropriate.
- Test Bank that includes over 2000 multiple-choice, true-false, and essay questions that vary in degree of difficulty and are tagged by learning objective, Bloom’s Taxonomy category, and AACSB, IMA, and AICPA guidelines. The Test Bank is available in a printable word format, as gradable WileyPLUS questions and as a TestGen Computerized Test Bank allowing instructors to modify and add questions to the master bank and to customize their exams in whichever format works best for their classroom.
- 5e to 6e Question Correlation Guide that maps the WileyPLUS questions from the 5th edition to the 6th edition to support easy assignment creation.
Key Content Changes
- Chapter 1: Expanded discussion of firm goals, including maximizing stakeholder value and stockholder welfare. Added a new section on corporate ESG initiatives and ratings.
- Chapter 7: Updated case study on executive compensation.
- Chapter 10: New case on the rise of electric vehicles.
- Chapter 11: Discussion of corporate marginal and average tax rates, including flat federal tax rates and progressive state tax rates. Updated case on Unilever’s sustainability policies.
- Chapter 13: A new case on ethical conflicts in the social media business model.
- Chapter 15: Regulatory requirements for stock market listings by foreign firms, new material on at-the-market offerings and SPAC IPOs, and updated data on issuance costs for IPOs, SEOs, preferred stock, and bonds.
ROBERT PARRINO has been a member of the faculty at University of Texas since 1992. Dr. Parrino teaches courses in regular degree and executive education programs at the University of Texas and in customized executive education courses for industrial, financial, and professional firms. He has also taught at the University of Chicago, University of Rochester, and IMADEC University in Vienna. Dr. Parrino has received awards for teaching excellence at the University of Texas from students, faculty, and the Texas Exes (alumni association).
Dr. Parrino’s research includes studies of corporate governance, financial policies, restructuring, mergers and acquisitions, and private equity markets. He has published in the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Journal of Law and Economics, Journal of Portfolio Management, and Financial Management and received a number of awards for his research.
Dr. Parrino holds a B.S. degree in chemical engineering from Lehigh University, an MBA degree from The College of William and Mary, and M.S. and Ph.D. degrees in applied economics and finance, respectively, from the University of Rochester.
THOMAS W. BATES is the chair of the Department of Finance and Dean’s Council of 100 Distinguished Scholars at the W. P. Carey School of Business, Arizona State University. He has also taught courses in finance at the University of Delaware, the Ivey School of Business at the University of Western Ontario, and the University of Arizona where he received the Scrivner teaching award. During his career as an educator, Bates has taught corporate finance to students in undergraduate, MBA, executive MBA, and Ph.D. programs, as well as in custom corporate educational courses.
Bates is a regular contributor to academic finance literature in such journals as the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, and Financial Management. His research addresses a variety of issues in corporate finance, including the contracting environment in mergers and acquisitions, corporate liquidity decisions and cash holdings, and the governance of corporations. In practice, Bates has worked with companies and legal firms as an advisor on issues related to the valuation of companies and corporate governance. Bates received a B.A. in economics from Guilford College and his doctorate in finance from the University of Pittsburgh.
STUART L. GILLAN is associate professor of finance in the Terry College of Business at the University of Georgia. His industry experience includes time as associate chief economist at the United States Securities and Exchange Commission (SEC) and senior research fellow with TIAA, a New York-based financial services company.
Before joining the University of Georgia, he held academic positions at Arizona State University, the University of Delaware, the University of Hong Kong, the University of Otago, and Texas Tech University. He has also been a visiting scholar at the Chinese University of Hong Kong, the University of Canterbury, and the Hong Kong Polytechnic University, and he was a William Evans Fellow at the University of Otago. In addition to teaching corporate finance classes to undergraduate, masters, MBA and executive MBA students, Gillan has taught in several customized executive education and corporate programs. In recognition of his teaching, he received a Terry College of Business Hugh O. Nourse Outstanding MBA Teacher Award.
Additionally, Gillan has served as co-editor of the Journal of Corporate Finance, associate editor of the Review of Financial Studies, and associate editor of Accounting and Finance, and he serves on the editorial advisory board of the Journal of Applied Corporate Finance. He has written and published extensively on corporate finance and corporate governance, including topics such as corporate restructuring, executive compensation, shareholder activism, shareholder voting, and the structure and activity of corporate boards. His research has been published in the Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Corporate Finance, Journal of Risk and Insurance, Financial Management, and the Journal of Applied Corporate Finance, among others. He has also received best paper awards from academic finance groups, including the Financial Management Association International, the Indian School of Business Center for Analytical Finance, and the Western Finance Association.
Gillan received his Ph.D. from the Graduate School of Business at the University of Texas, Austin. His bachelor of commerce (Honors) and masters of commerce degrees are from the University of Otago, New Zealand.
DAVID S. KIDWELL (1940-2019) has over 30 years of experience in financial education as a teacher, researcher, and administrator. He has served as dean of the Carlson School at the University of Minnesota and of the School of Business Administration at the University of Connecticut. He was also on the faculty at the Krannert Graduate School of Management, Purdue University, where he was twice voted the outstanding undergraduate teacher of the year. An expert on the U.S. financial system, Kidwell is the author of more than 80 articles dealing with the U.S. financial system and capital markets.
Kidwell has published his research in the leading journals, including the Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Financial Management, and Journal of Money, Credit, and Banking. Kidwell holds an undergraduate degree in mechanical engineering from California State University at San Diego, an MBA with a concentration in finance from California State University at San Francisco, and a Ph.D. in finance from the University of Oregon.
- The Financial Manager and the Firm
- The Financial System and the Level of Interest Rates
- Financial Statements, Cash Flows, and Taxes
- Analyzing Financial Statements
- The Time Value of Money
- Discounted Cash Flows and Valuation
- Risk and Return
- Bond Valuation and the Structure of Interest Rates
- Stock Valuation
- The Fundamentals of Capital Budgeting
- Cash Flows and Capital Budgeting
- Evaluating Project Economics
- The Cost of Capital
- Working Capital Management
- How Firms Raise Capital
- Capital Structure Policy
- Dividends, Stock Repurchases and Payout Policy
- Business Formation, Growth, and Valuation
- Financial Planning and Managing Growth
- Options and Corporate Finance
- International Financial Management
Appendix A Future Value and Present Value Tables
Appendix B Solutions to Odd Problems
Appendix C The 2017 Tax Cuts and Jobs Act: Implication for Cash Flow to Investors, the Cost of Capital, and Capital Structure