Fundamentals of Corporate Finance, 5th Edition

Fundamentals of Corporate Finance, 5th Edition Book Cover

Fundamentals of Corporate Finance, 5th Edition

By Robert Parrino, Thomas Bates, Stuart L. Gillan, and David S. Kidwell

SINGLE-TERM
$99  USD | $99  CDN

Fundamentals of Corporate Finance, 5th Edition develops the key concepts of corporate finance with an intuitive approach while emphasizing computational skills. This course helps students develop an intuitive understanding of key financial concepts and provides them with problem-solving and decision-making skills. 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, 5e offers a level of rigor that is appropriate for both business and finance majors and yet presents the content in a manner that students find accessible. Paired with WileyPLUS, students have access to adaptive practice tools, problem-solving support, and homework and video resources that will enhance their learning journey.

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Students can master corporate finance concepts with adaptive assignments and review tutorials:

New! 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 are included in each course section and provide step-by-step walkthrough solutions to question and problems similar in look and feel to the course homework.

Learn by Doing Interactive Tutorials: Quantitative problems with step-by-step solutions help students better understand how to apply their intuition and analytical skills to solve problems.

Narrated Presentation Videos: Every section contains a narrated presentation video with a corporate finance instructor talking through the PowerPoint slides provide support for online courses, flipped classroom, and student study and review.

Students can apply financial concepts and practice their Excel skills:

New! Gradable Excel Questions for selected end-of-chapter homework questions are available for instructors to assign in order to facilitate student practice of Excel skills in the context of solving finance questions. Students must correctly apply both knowledge of finance and the requested Excel function(s) for their work to be graded as correct.

Excel Walkthrough Videos: Students benefit from step-by-step examples of how to use specific Excel functions. Excel templates are available for all applicable end-of-chapter problems to support Excel function examples.

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.

Finance Weekly Updates (www.wileyfinanceupdates.com): Weekly online updates bring you the latest news relevant to your finance course.

Tax Update Appendix: This resource addresses the changes to the 2017 Tax Cuts and Jobs Act (TCJA) and provides instructors with a clear way to incorporate new tax code updates including end-of-chapter questions and auto-graded homework.

    What’s New to This Course

    The Before You Go On questions included at the end of each section are now also available to instructors as assignable questions in the Wiley course, to provide instructors another way to incentivize student practice and engagement with the textbook content.

    New and Updated In-Chapter Features:
    • The Learning Objectives at the beginning of each chapter have been revised to more fully reflect the important content in the associated sections of the chapters.
    • All the Chapter Opener Vignettes have been replaced with updated examples, typically from events in 2020 and 2021.
    • 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.
    • Six updated Ethics Cases provide a broader perspective on the important environmental, social, and governance (ESG) decisions facing mangers today.
    Chapter Content Changes:
    • Chapter 3: addition of more in-text calculations related to cash flows associated with working capital and long-term investments.
    • Chapter 7: addition of a new section on arithmetic versus geometric returns. New case addressing the controversial rise in executive compensation.
    • Chapter 8: streamlining of some of bond calculation discussions.
    • Chapter 10: New case on sustainability highlighting the increasing focus of automakers on the production of electric vehicles.

ROBERT PARRINO is 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.

1. The Financial Manager and the Firm

2. The Financial System and the Level of Interest Rates

3. Financial Statements, Cash Flows, and Taxes

4. Analyzing Financial Statements

5. The Time Value of Money

6. Discounted Cash Flows and Valuation

7. Risk and Return

8. Bond Valuation and the Structure of Interest Rates

9. Stock Valuation

10. The Fundamentals of Capital Budgeting

11. Cash Flows and Capital Budgeting

12. Evaluating Project Economics

13. The Cost of Capital

14. Working Capital Management

15. How Firms Raise Capital

16. Capital Structure Policy

17. Dividends, Stock Repurchases and Payout Policy

18. Business Formation, Growth, and Valuation

19. Financial Planning and Managing Growth

20. Options and Corporate Finance

21. 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

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