Product Description

Principles of Corporate Finance is the worldwide leading text that describes the theory and practice of corporate finance. Throughout the book the authors show how managers use financial theory to solve practical problems and as a way of learning how to respond to change by showing not just how but why companies and management act as they do. The text is comprehensive, authoritative, and modern and yet the material is presented at a common sense level. The discussions and illustrations are unique due to the depth of detail blended with a distinct sense of humor for which the book is well known and highly regarded. This text is a valued reference for thousands of practicing financial managers.

Product Details

• Amazon Sales Rank: #28813 in Books
• Published on: 2007-11-01
• Original language: English
• Binding: Paperback

Customer Reviews

Comprehensive
I just read the book - cover to cover. It is very comprehensive and readable however I have a few gripes:

1. It reads like a book that has "evolved" and is somewhat "lumpy". Some bits are bang up-to-date - others are not; some bits are international some are very US domestic focussed; some bits are amazingly simple (does anyone not know what a direct debit is?) others are highly complex (efficient frontiers and linear programming).

2. The authors should acknowledge that not all CFOs are female and to use "she" in place of "he" whenever they refer to senior decision-makers in fictional companies is both unnecessary and patronising. Feminists will tell you, you've got this wrong - you could easily have used more neutral language (instead of he or she use "they" for example).

3. "Forecasted" is a very clumsy word (on almost every page) - doesn't everyone just say "forecast"?

4. Text refers to "blue lines" on the graphs which are always "black lines" - by the 9th edition you'd think you could have sorted that out!

More technically specific gripes:
1. I believe there are occasions when it makes sense to exercise American options early if you can't short the stock (eg US government has just banned short selling in financial stocks).
2. p649 high yield spreads declined as investors "scurried to the safe haven of high-quality debt" - forgive me but I for one can't work that out!
3. p 788 IOSC is the wrong acronmy for IOSCO (typo?).
4. Swaps are poorly explained. They derived from the arbitrages between international bond markets - which explains how they are structured.
5. The book refers only to the interest calculation basis of actual/360 which is only used in US. It is confusing to only mention this basis and not go on to refer to 30/360 (bond basis) or actual/365 as used in most international markets. In fact, there is a whole section on cash amangement that needs to be reviewed, in my opinion, to make it international and fit with the rest of the book.

Overall, I think it is a good textbook and sound primer - but someone needs a re-edit to freshen it up. The good news is that the Credit Cruch provides that opportunity to take a fresh look at the whole thing and highlight liquidity issues!

Really good purchuase
I do recommend this book for all finance and business students. Very informative and clear.

updating a classic
It was sold as a "classic" text when I bought the 2nd Ed as a student in 1984. Now I'm a lecturer and so decided to get an up-to-date edition (9th). Oh dear.. 'Bal' is spot-on with his critique and it's such a pity the publishers haven't done a better editing job. It's not a classic anymore because the publishers (probably more culpable than the authors?) missed the chance to make this, post Credit-Crunch (if there is a 'post-') a truly international student text. I have added others to my students' Reading List as a result. However, despite these faults, it's still a really good intro' to so many aspects of Finance and Funding that it stays at the top of my recommended reading to Masters degree students.