Corporate Finance, 5th edition Berk and DeMarzo (2023)

Jonathan Berk &Peter DeMarzo

| c 2020

Publishing date11 Jun 2019
Corporate Finance, 5th edition Berk and DeMarzo (1)
Corporate Finance, 5th edition Berk and DeMarzo (2)
Corporate Finance, 5th edition Berk and DeMarzo (3)


An Emphasis on Core Financial Principles to Elevate Individuals’ Financial Decision Making

Using the unifying valuation framework based on the Law of One Price, top researchers Jonathan Berk and Peter DeMarzo have set the new canon for corporate finance textbooks.Corporate Finance,Fourth Editionblends coverage of time-tested principles and the latest advancements with the practical perspective of the financial manager, so students have the knowledge and tools they need to make sound financial decisions in their careers.

For a streamlined book specifically tailored to the topics covered in the first one-semester course,Corporate Finance: The Coreis also available by Jonathan Berk and Peter DeMarzo.

MyFinanceLabTMnot included.Students, if MyFinanceLab is recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyFinanceLab should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.MyFinanceLabis an online homework, tutorial, and assessment product designed to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

For MBA/graduate students taking a course in corporate finance.


  • The Law of One Price: A Unifying Principle of Valuation. The Law of One Price is used as a framework, reflecting the modern idea that the absence of arbitrage is the unifying concept in valuation. This theme is introduced in Chapter 3, revisited in each Part Opener, and integrated throughout. It connects theory to practice, and unifies what might appear to students as disparate topics that comprise the course syllabus.
  • Options for Teaching Risk and Return. Chapter 3 briefly introduces the concept of risk and return so that it can be used in early chapters. Later, Part IV is flexible and allows instructors to opt for brief or comprehensive coverage of the topic.
  • Emphasis of Capital Budgeting and Valuation. Capital budgeting and valuation is presented in two distinct stages. In Chapter 8, the first stage focuses on cash flows, while the second stage focuses on capital budgeting and valuation in the real world in Chapter 18 and the capstone Chapter 19.
  • Study aids with a practical focus. To be successful, students need to master the core concepts and learn to solve problems that today's practitioners face.
    o Common Mistakes boxes alert students to frequently made mistakes stemming from misunderstanding core concepts and calculations -- in the classroom and in the field.
    o Worked examples accompany every important concept using a step-by-step procedure that models the solution and process.
  • Nobel Prize boxes reflect recent Nobel prizes awarded for material covered in the text.
  • A simplified presentation of mathematics. One of the hardest parts of learning finance is mastering the jargon, math, and non-standardized notation. Corporate Finance systematically uses the following:

o Chapter-Opening notation boxes define the variables and acronyms used in the chapter and serve as a 'legend' for students' reference.

o Timelines are emphasized as an important first step in solving every problem that involves cash flows.

o Numbered and labeled equations. The first time a full equation is given in notation form it is numbered. Key equations are titled and revisited in the summary and in end papers.

  • Practice finance to learn finance. Working problems are the proven way to cement and demonstrate an understanding of finance.

(Video) Test Bank Corporate Finance 5th Edition Berk

New to this Edition

  • Six interviews with notable practitioners, such as Janet Yellen, Susan Athey, and Anne Martin, highlight leaders in the field and address the effects of the financial crisis and ongoing European sovereign debt crisis. Nobel Prize boxes reflect recent prizes awarded for finance.
  • General Interest boxes highlight timely material from financial publications about business problems, real-company practices, and the latest tax rates.
  • Global Financial Crisis boxes examine individuals and companies in crisis around the world and include updated discussion on The Dodd-Frank Act’s implementation and relevancy.
  • Updated - Personal Finance examples demonstrate how students can apply managerial finance concepts, tools, and techniques to their own personal finance decisions.
  • Berk and DeMarzo introduce recent advances in financial research, data, events, and technologies, including:
    o Updates consistent with the Tax Cut and Jobs Act of 2017
    o Updated discussions of fintech, cryptocurrencies, blockchain, and capital budgeting
    o New discussion on debt and taxes, and expanded information on international corporate finance
  • Updated - End-of-Chapter Excel Projects exercises help students gain important statistical skills and become more proficient in Excel.
  • Updated - Concept Check questions at the end of each section enable students to test their understanding and target areas for further review.
  • Updated - Data Cases present in-depth business scenarios with questions to guide students' analysis. Many questions involve the use of internet resources and Excel. Cases on bitcoin, JMP, and more have been added to the 5th Edition.

Table of Contents


Chapter 1 The Corporation and Financial Markets
Chapter 2 Introduction to Financial Statement Analysis
Chapter 3 Financial Decision Making and the Law of One Price


Chapter 4 The Time Value of Money
Chapter 5 Interest Rates
Chapter 6 Valuing Bonds


Chapter 7 Investment Decision Rules
Chapter 8 Fundamentals of Capital Budgeting
Chapter 9 Valuing Stocks


Chapter 10 Capital Markets and the Pricing of Risk
Chapter 11 Optimal Portfolio Choice and the Capital Asset Pricing Model
Chapter 12 Estimating the Cost of Capital
Chapter 13 Investor Behavior and Capital Market Efficiency


Chapter 14 Capital Structure in a Perfect Market
Chapter 15 Debt and Taxes
Chapter 16 Financial Distress, Managerial Incentives, and Information
Chapter 17 Payout Policy


Chapter 18 Capital Budgeting and Valuation with Leverage
Chapter 19 Valuation and Financial Modeling: A Case Study


Chapter 20 Financial Options
Chapter 21 Option Valuation
Chapter 22 Real Options


Chapter 23 Raising Equity Capital
Chapter 24 Debt Financing
Chapter 25 Leasing


Chapter 26 Working Capital Management
Chapter 27 Short-Term Financial Planning


Chapter 28 Mergers and Acquisitions
Chapter 29 Corporate Governance
Chapter 30 Risk Management
Chapter 31 International Corporate Finance

MyLab Finance

This title can be supported by MyLab Finance, an online homework and tutorial system, designed to test and build your students understanding.If you'd like to arrange a demonstration of MyLab Finance, let us know by contacting us at and we can get a Pearson representative to contact you.Visit Pearson MyLab & Mastering to find out how it can improve results by engaging students effectively with immersive content, tools, and experiences.

(Video) 2- Corporate Finance June2020, Corporate Finance,5th Edition, Berk,DeMarzo Chap29

Corporate Finance + Pearson MyLab Finance + Pearson eText

Berk & DeMarzo


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Downloadable Instructor Resources

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Instructor's Resource Manual for Corporate Finance, Global Edition, 5/E

Berk & DeMarzo
ISBN-10: 1292304170 • ISBN-13: 9781292304175
©2020 • Online • Live

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(Video) Fundamentals of Corporate Finance, 5th Edition by Berk Test Bank Solutions

Instructor's Solutions Manual for Corporate Finance, Global Edition, 5/E

Berk & DeMarzo
ISBN-10: 1292304189 • ISBN-13: 9781292304182
©2020 • Online • Live

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PowerPoint Presentation for Corporate Finance, Global Edition, 5/E

Berk & DeMarzo
ISBN-10: 1292304227 • ISBN-13: 9781292304229
©2020 • Online • Estimated Availability: 12 Aug 2019

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TestGen for Corporate Finance, Global Edition, 5/E

Berk & DeMarzo
ISBN-10: 1292304243 • ISBN-13: 9781292304243
©2020 • Online • Estimated Availability: 15 Aug 2019

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(Video) 1- Corporate Finance June2020, Corporate Finance,5th Edition, Berk,DeMarzo Chap1


1. Chapter 1 - The Corporation
(Kunal Cholera)
2. Chapter 11 - Corporate Finance 4th Edition Berk, DeMarzo
(Kunal Cholera)
3. Chapter 10 - Corporate Finance 4th Edition Berk, DeMarzo
(Kunal Cholera)
4. Chapter 2 - Financial Statement Analysis
(Kunal Cholera)
5. Berk DeMarzo 2e Video Walkthrough
6. Pearson & Berk/DeMarzo/Harford’s Corporate Finance Series Celebrates 1M Users
(Pearson Higher Education)
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