Fundamentals of Corporate Finance

As the world shifts to a greater reliance on digital media, it is appropriate that this resource evolves as well. This fourth Canadian edition is the first fully digital version of Fundamentals of Corporate Finance. Instructors and students will find that, although the medium has changed, the content is fully consistent with prior editions.

Fundamentals of Corporate Finance presents finance as one unified whole based on two simple, powerful ideas: (1) valuation drives decision making—the firm should take projects for which the value of the benefits exceeds the value of the costs—and(2) in a competitive market, market prices (rather than individual preferences)determine values. The authors combine these two ideas with the Valuation Principle, and from it we establish all the key ideas in corporate finance.

With the increasing focus on finance in the news, today’s undergraduate students arrive in the classroom with a greater interest in finance than many of their predecessors. The challenge is to use that natural interest and motivation to overcome their fear of the subject and communicate these time-tested core principles. By providing examples involving familiar companies such as Air Canada, Apple and BCE; making consistent use of real-world data; and demonstrating personal finance applications of core concepts, we strive to keep even nonfinance majors engaged.