About the Authors
The authors of Principles of Corporate Finance are Richard A. Brealey, Stewart C. Myers, and Franklin Allen.
Richard A. Brealey is a retired Professor of Finance at the London Business School. He has also taught at the University of California, Berkeley, and the Harvard Business School. He is a renowned expert in finance and investments, and has authored numerous books and articles on the subject.
Stewart C. Myers is a Professor of Finance at the Massachusetts Institute of Technology (MIT) and a visiting professor at the London Business School. He is a highly respected scholar in the field of corporate finance and has received multiple awards for his research and teaching.
Franklin Allen is a Professor of Finance and Economics at Imperial College London and the Wharton School of the University of Pennsylvania. He is considered one of the leading authorities in the areas of corporate finance and financial institutions.
Collectively, these three authors bring a wealth of knowledge and experience to the field of corporate finance, making Principles of Corporate Finance a highly regarded and widely used textbook in universities around the world.
Overview of the Book
Principles of Corporate Finance is a comprehensive and authoritative textbook that covers the foundations of corporate finance, corporate financial policy, valuation of corporate investments, and risk management. It is designed for undergraduate and graduate students studying finance, as well as professionals in the field seeking to deepen their understanding of corporate finance principles.
The book is divided into four main sections: Introduction to Corporate Finance, How to Value Projects and Companies, Capital Structure, and Managing Risk. Each section is further divided into chapters, providing a logical and structured approach to understanding the concepts and principles of corporate finance.
This textbook emphasizes the importance of practical application and decision-making, with numerous real-world case studies, examples, and exercises. It also includes access to online resources such as Excel templates, videos, and additional case studies.
Key Principles of Corporate Finance
One of the key principles emphasized in this book is the goal of maximizing shareholder wealth. This means making decisions that increase the overall value of the company for its shareholders. This principle guides decision-making in areas such as capital budgeting, dividend policy, and risk management.
Another important principle is the trade-off between risk and return. The authors discuss how companies and investors can manage risk through diversification and how they can use the concept of risk and return to make informed investment decisions.
The book also delves into topics such as capital structure and financial analysis, providing readers with a solid understanding of how companies finance their operations and make strategic financial decisions.
Overall, the Principles of Corporate Finance by Brealey, Myers, and Allen is a highly regarded and comprehensive textbook that provides students and professionals with a thorough understanding of the principles and practices of corporate finance.