Principles of Corporate Finance: 2025 Release ISE

Brealey: Principles of Corporate Finance bridges the gap between financial theory and practical application for corporate finance. It emphasizes the importance of understanding financial theory to adapt to non-routine situations and evolving market conditions. By explaining why companies and financial markets behave as they do, the book equips managers with the tools to make informed decisions, not just based on experience but backed by theory. The authors address controversies within financial theory, offering balanced viewpoints while emphasizing practical applications to increase company value.

PART ONE: VALUE
1. Introduction to Corporate Finance
2. How to Calculate Present Values
3. Valuing Bonds
4. Valuing Stocks
5. Net Present Value and Other Investment Criteria
6. Making Investment Decisions with the Net Present Value Rule

PART TWO: RISK
7. Introduction to Risk, Diversification, and Portfolio Selection
8. The Capital Asset Pricing Model
9. Risk and the Cost of Capital

PART THREE: BEST PRACTICES IN CAPITAL BUDGETING
10. Project Analysis
11. How to Ensure That Projects Truly Have Positive NPVs

PART FOUR: FINANCING DECISIONS AND MARKETING EFFICIENCY
12. Efficient Markets and Behavioral Finance
13. An Overview of Corporate Financing
14. How Corporations Issue Securities

PART FIVE: PAYOUT POLICY AND CAPITAL STRUCTURE
15. Payout Policy
16. Does Debt Policy Matter?
17. How Much Should a Corporation Borrow?
18. Financing and Valuation

PART SIX: CORPORATE OBJECTIVES AND GOVERNANCE
19. Agency Problems and Corporate Governance
20. Stakeholder Capitalism and Responsible Business

PART SEVEN: OPTIONS
21. Understanding Options
22. Valuing Options
23. Real Options

PART EIGHT: DEBT FINANCING
24. Credit Risk and the Value of Corporate Debt
25. The Many Different Kinds of Debt
26. Leasing

PART NINE: RISK MANAGEMENT
27. Managing Risk
28. International Financial Management

PART TEN: FINANCIAL PLANNING AND WORKING CAPITAL MANAGEMENT
29. Financial Analysis
30. Financial Planning
31. Working Capital Management

PART ELEVEN: MERGERS, CORPORATE CONTROL, AND GOVERNANCE
32. Mergers
33. Corporate Restructuring

PART TWELVE: CONCLUSION
34. Conclusion: What We Do and Do Not Know about Finance