Principles of Finance
Principles of Finance
Robert C. Merton, Massachusetts Institute of Technology
Richard T. Thakor, University of Minnesota
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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.
- Options pricing is presented in the first half of book, positioning the theory as foundational to the study and practice of finance
- While clearly presenting the superior academic knowledge of the authors, the book is highly accessible, engaging and readable, with the first ten chapters assuming no prior knowledge.
- Explicitly written to avoid excess detail on institutions and markets, and to instead ensure relevance to all institutional and market contexts, both now and into the future
- Financial literacy and the study of finance is presented as fundamental to personal and professional success. Examples of personal and corporate financial scenarios are presented throughout, to engage students with the field
Reviews & endorsements
‘This insightful finance guide is a must-read for both students and professionals. The authors expertly simplify complex concepts, making them both accessible and engaging. From core finance concepts to corporate finance and investment, each chapter provides valuable insights and practical applications. This book paves the way to financial competence and success.’ Jenny Gu, University of Dallas
‘Combining rigorous theory with practical tools, this book helps students navigate global financial challenges and local market dynamics, making it an invaluable resource for diverse learners. The focus on universal principles helps students understand financial markets, regardless of the economic context-whether in developed or developing economies.’ Fang Yu, China Europe International Business School
‘I have used textbooks by Bodie for almost fifteen years for the clear exposition of finance theory and the practical relevance of the end-of-chapter problems. This book meets those high standards. This text is a must-have for undergraduate and MBA finance students. The authors have nailed it!’ Kelly E. Carter, Morgan State University
‘This book offers a comprehensive introduction to modern finance. Anchored by ten unifying principles and utilizing only basic algebra and statistics, this text is highly accessible. It effectively builds the reader’s understanding without compromising on academic rigor and precision.’ Claus Munk, Copenhagen Business School
‘This account is a must-read for both students and professionals.’ Neo, Wonderpedia USA
Product details
February 2025Hardback
9781108833813
766 pages
268 × 207 × 31 mm
1.9kg
Available
Table of Contents
- 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.
