eBook: Fundamentals of Corporate Finance 5e

PART ONE: Overview of Corporate Finance

Chapter 1: Introduction to Corporate Finance

Chapter 2: Corporate Governance

Chapter 3: Financial Statement Analysis

PART TWO: Valuation of Future Cash Flows

Chapter 4: Introduction to Valuation: The Time Value of Money

Chapter 5: Discounted Cash Flow Valuation

Chapter 6: Bond Valuation

Chapter 7: Equity Valuation

PART THREE: Capital Budgeting

Chapter 8: Net Present Value and Other Investment Criteria

Chapter 9: Making Capital Investment Decisions

Chapter 10: Project Analysis and Evaluation

PART FOUR: Risk and Return

Chapter 11: Some Lessons from Recent Capital Market History

Chapter 12: Return, Risk and the Security Market Line

PART FIVE: Cost of Capital and Long-Term Financial Policy

Chapter 13: Cost of Capital

Chapter 14: Raising Capital

Chapter 15: Financial Leverage and Capital Structure Policy

Chapter 16: Dividends and Payout Policy

PART SIX: Topics in Corporate Finance

Chapter 17: Short-term Financial Planning and Management

Chapter 18: International Corporate Finance

Chapter 19: Behavioural Finance

Chapter 20: Financial Risk Management

Chapter 21: Options and Corporate Finance

Chapter 22: Mergers and Acquisitions

Now in its fifth edition, Fundamentals of Corporate Finance continues to offer a clear, engaging introduction to the core principles of modern corporate finance. Blending accessible language with real-world European examples, the book equips students with the essential knowledge and tools needed to understand how financial decisions are made in a dynamic global environment.

Drawing on the authors’ extensive academic and industry expertise, the text presents a solid conceptual framework supported by practical applications, integrated theory, and up-to-date case insights. It’s an ideal resource for students seeking to grasp the fundamentals of corporate finance and the evolving strategies firms use to navigate today’s financial landscape.

Key Features

• New and updated Sustainability in Finance boxes explore how environmental, social, and governance (ESG) issues intersect with corporate financial decision-making.
• Expanded coverage of emerging technologies, including AI and large language models, and their growing impact on financial strategy and business operations.
• New Real-World Insight boxes on topics such as investing, the impact of technology (such as AI or the metaverse) on finance, stock markets and pricing models show how theory translates into real business practice.
• Enhanced focus on data analytics in financial statement analysis, as well as evolving topics like bitcoin, peer-to-peer lending, and regulatory technology.
• Curriculum alignment with key professional qualifications, including ACCA, CIMA, and ICAEW.

Fundamentals of Corporate Finance is available through McGraw Hill’s Connect® learning platform as an interactive, adaptive eBook alongside a wealth of ready-made course content for teaching, learning, practice and assessment. With a variety of tools to help with course management, insight and tracking, Connect helps faculty and institutions improve student outcomes and deliver courses more efficiently. To learn more, visit mheducation.co.uk/connect.

David Hillier is Associate Principal and Executive Dean of Strathclyde Business School and Professor of Finance at the University of Strathclyde. David was recognized as being in the top 3 per cent of the most prolific finance researchers in the world over the past 50 years (Heck and Cooley, 2009) and appears regularly in the media as a business commentator. David teaches regularly in development programs for executives and has taught courses for a wide variety of professional clients, including the World Bank and the National Health Service in the UK. He is part of the editorial board of several international finance journals.

Rama Seth is an Associate Professor of Finance at the Copenhagen Business School and Professor (on Leave) in the Finance and Control Department at the Indian Institute of Management Calcutta. She earned her PhD at Columbia University in New York City and has served at leading international policy-making bodies such as the Federal Reserve Bank, The World Bank, the International Monetary Fund, the Bank for International Settlements, and the United Nations. She has been selected for the 2018 IP 50 Women in Education Leaders Award.