Corporate Finance, 4th Edition
David Hillier, Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
ISBN: 9781526848086
The world of Corporate Finance has changed drastically over the past few years. This edition will highlight the key concepts and issues that are relevant to the sector and impact on many key business decisions.
This edition of the highly requested title by David Hillier provides students with a greater focus on sustainability, ethics, financial technology and the environment. It has a focus on algorithmic end of chapter questions on Connect, and more case studies.
The fourth edition of Corporate Finance takes an applied approach to cover all the latest research and topic areas important to students taking Finance courses.
What's new
Up-to-date content
- An in depth accuracy check of every algorithmic question
- Much greater focus on sustainability, ethics, and the environment
- Included are additional investment appraisal rules (Modified IRR, Margin of Safety, Net Asset Values)
- Updated terminology to be consistent with and reflect the IFRS
New case studies & activities
- Mini and Practical cases present scenarios and questions to practice applying what the student has learnt
- The maths questions at the end of chapters are incrementally difficult and there are more applied real-world cases for readers to understand the context of the finance theories
New structure
- In response to feedback, a whole new section has been added in Chapter 2 on SDGs and the Triple Bottom Line
- New section on Modified Internal Rate of Return and Margin of Safety in Investment Appraisal, Net Asset Value, Islamic Financing, and alternatives to CAPM to reflect research developments
- Newly developed solutions to the Mini and Practical cases in text
| Part I: Overview | 11. Factor Models and the Arbitrage Pricing Theory | Part VI: Options, Futures, and Corporate Finance |
| 1. Introduction to Corporate Finance | 12. Risk, Cost of Capital, and Capital Budgeting | 22. Options and Corporate Finance |
| 2. Corporate Governance | 13. Efficient Capital Markets and Behavioural Finance | 23. Options and Corporate Finance: Extensions and Applications |
| Part II: Value and Capital Budgeting | Part IV: Long-Term Financing | 24. Warrants and Convertibles |
| 3. Financial Statement Analysis | 14. Long Term Financing: An Introduction | 25. Financial Risk Management with Derivatives |
| 4. Discounted Cash Flow Valuation | 15. Equity Financing | Part VII: Financial Planning and Short Term Finance |
| 5. How to Value Bonds and Stocks | 16. Debt Financing | 26. Short Term Finance and Planning |
| 6. Net Present Value and Other Investment Rules | 17. Leasing | 27. Short Term Capital Management |
| 7. Making Capital Investment Decisions | Part V: Capital Structure and Dividend Policy | Part VIII: Special Topics |
| 8. Risk Analysis, Real Options, and Capital Budgeting | 18. Capital Structure: Basic Concepts | 28. Mergers and Acquisitions |
| Part III: Risk | 19. Capital Structure: limits to the use of debt | 29. Financial Distress |
| 9. Risk and Return: Lessons from Market History | 20. Valuation and Capital Budgeting for the Levered Firm | 30. International Corporate Finance |
| 10. Risk and Return: The Capital Asset-Pricing Model | 21. Dividends and Other Payouts |
The fourth edition has again been thoroughly revised, using feedback from a broad range of actual and potential adopters. A lot has changed since the previous edition and it is all reflected in the text. Specific changes to the new edition include:
- Updated discussions on peer-to-peer trading, cash flow forecasting methods, import/export partners and additional investment appraisal methods
- Updated chapters on corporate governance to reflect global changes, efficient markets and mergers and acquisition to reflect new research, financial distress to reflect new data with discussion on trends and insolvencies and a fully updated chapter on Leasing to reflect new IFRS standards
Click here to view a sample chapter
About the author
David Hillier
Professor Hillier is responsible for managing resources to provide teaching, learning, research and knowledge transfer activities in the Strathclyde Business School (SBS). A Professor of Finance, David is the author of the largest franchise of Finance textbooks outside of the US and is a visiting professor at Politecnico di Milano. David is recognised as being in the top 3% of the most prolific finance researchers in the world over the past fifty years (Heck and Cooley, 2009)
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Connect's integrated SmartBook tool maximises learning by helping students study more efficiently, highlighting where in the chapter to focus, asking review questions, and pointing them to additional resources until they understand the content.
Students can learn basic Excel skills, such as formulas and cell referencing in our Excel simulation environment where they are required to enter answers as a formula. The questions feature animated and narrated 'Help and Show Me' tutorials when enabled alongside automatic feedback and grading for both students and instructors.
In addition to all basic cell referencing and mathematical operations, the following functions are available:
- Absolute references
- ActiveX control
- Descriptive Statistics
- Goal seek
- Loan amoritization worksheet
- Pivot tables
- Scenario manager
- Solver (add-in)
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- Two-way data tables
Algorithmic Problem Sets
The problem sets help students to become more proficient in a topic by providing the opportunity to practice and master concepts with multiple versions of each problem. Algorithmic problems can also be used in class testing to provide each student with a different version than that seen by their peers.
Calculation questions
Auto-graded calculation questions are available to test students’ mathematical understanding.
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