Principles of Finance

An introductory, principles-based finance textbook with a flexible modular structure, and clear explanation of content.

Zvi Bodie (Author), Robert C. Merton (Author), Richard T. Thakor (Author)

9781108987165, Cambridge University Press

Paperback / softback, published 13 February 2025

766 pages
25.5 x 20.2 x 2.7 cm, 1.49 kg

'A truly well organised and well written book with a big plus: It puts the sometimes technical content of the single chapters into the bigger picture of finance, its purpose, institutions and principles. Particularly, the guiding 10 principles of finance are a very valuable concept for students!' Bernd Muehlfriedel, University of Applied Sciences Landshut

Written for the MBA or undergraduate first course in finance, as well as follow-on courses, this textbook provides a clear, accessible, and thorough explanation of the principles of finance; how they connect to real-world practice and how they are used to solve problems. Structured around ten unifying principles representing the core tenets of the science, this book imparts basic financial concepts irrespective of the institutional framework, ensuring that students learn about finance in a way that is applicable both now and into the future. Pedagogical features include learning objectives and major takeaways, applications in the world of business, numerous worked examples, key equation boxes highlighting the most important financial equations, quick check questions with solutions, key finance terms with a detailed glossary, and more than 380 homework problems. Online resources include a solutions manual, detailed instructor manual to adapt the book to your course, lectures slides and an 800 question test bank for instructors.

Part I: 1. The Ten Principles of Finance
2. Basics of Valuation: The Time Value of Money
3. Personal Finance
4. Principles of Valuation
5. Financial Instruments and Rates of Return
6. Principles of Risk Management
7. Options
8. Financial Statements: Analyzing and Forecasting
Part II: 9. Company Valuation
10. Capital Budgeting
11. Agency Costs and Governance
12. Payout Policy
13. Capital Structure
14. A Unified Approach to the Valuation of Corporate Assets and Capital Structure
15. Financing over a Firm's Life
Part III: 16. The Term Structure of Interest Rates
17. Portfolio Theory
18. Capital Market Equilibrium
19. Derivatives
20. The Financial System and its Functions.

Subject Areas: Finance [KFF]