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This book highlights how core financial principles can improve individual financial decision making. Connects theory to practice – Shows students how three major topics (corporate finance, investments and valuation) are connected by using ‘The Law of One Price’ as a framework throughout the text. Balanced approach – Uses both time-tested and modern principles with the practical perspective of a financial manager, offering us the tools to make sound financial decisions.
The book emphasizes the modern fundamentals of the theory of finance, while providing contemporary examples to make the theory come to life. The authors aim to present corporate finance as the working of a small number of integrated and powerful intuitions, rather than a collection of unrelated topics. They develop the central concepts of modern finance: arbitrage, net present value, efficient markets, agency theory, options, and the trade-off between risk and return, and use them to explain corporate finance with a balance of theory and application.
