Principles of Corporate Finance

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Summary: npv
Review: I had to read a few chapters from this book for one of my finance classes. At first I was very skeptical of the text because of the authors' obsession with CAPM, beta, and modern portfolio theory. These concepts make no sense at all. They only serve to illustrate that even the most elegant mathematical models of the world have little practical value if the underlying assumptions are wrong. Very soon, however, my initial prejudice towards the book began to disappear. Eventually, I read the entire textbook, which wasn't required by my instructor. I still believe that CAPM and modern portfolio theory are all wrong but I was fascinated by authors' extensive discussion of NPV and Capital Structure. NPV, indeed, is the only proper way to value any business venture and no compromise can be made in this respect. Brealey & Myers got that one right.The book is well written and most of the examples and explanations are easy to comprehend...

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Summary: Excellent seller....quick delivery
Review: Received the book in perfect conditions and in short period of time!! Thanks...

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Summary: A solid introduction to corporate finance
Review: This Brealey and Myers's textbook, now in its 7th edition, introduces the student to the fascinating world of corporate finance. The first few chapters of the book demystify Net Present Value, the preferred method for calculating the value of an investment project. Brealey and Myers then explain how risk and return are related and introduce the Capital Asset Pricing Model. The CAPM's strengths and weaknesses are both explored in detail. The authors continue by analyzing the significance of dividend policy and debt policy for a corporation -- including the rather surprising result that in perfect markets these just don't matter! The next topic is options, financial and real; major pricing models are covered, and warrants and convertibles get a fair treatment, too. The remaining parts of the book deal with a variety of topics such as valuing debt, managing financial risks, financial planning as well as mergers and corporate governance.

At 1071 pages, Principles of Corporate Finance can hardly be called a short book. Introductory textbooks often suffer from a "too-much-too-little" syndrome, in that numerous topics are covered, but none too well. Brealey and Myers easily avoid this pitfall. Their writing is solid and manages to keep the reader's interest. Although available space puts a limit on what can be said, the book's coverage is quite comprehensive and well linked to the results of modern research. Moreover, all topics receive their fair share of treatment so you can actually understand the theories the book presents. It should be noted here that some mathematical background is probably necessary to make the book easy reading.

Each chapter contains many problems which can be used to facilitate the learning process. I found them very useful. The only complaint I have about the book (International Edition) is that the binding proved less than perfect, as after a while pages started separating from the main body of the work. But that is a problem I can live with.

All in all, an interesting, readable, authoritative introduction to corporate finance.

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Summary: CORPORATE FINANCE BIBLE ON WALL STREET
Review: I have used this book three times now: as an undergraduate in financial economics, at the training program at an investment bank, and at the core finance course at my MBA. It is a very good resource and learning tool, going from the very basic ideas of discounting all the way to options pricing and more innovative finance.

This is the preferred learning tools of all finance professors I have met and the reference used by all finance professionals I met. It is very simple to follow the concepts of the book, especially if you purchase the study guide that is available with it.

The only major concern I have heard is that it does not deal with the more recent finance problems of off-balance sheet financing and other shenanigans. This is a book meant to teach basic financial theory, so those topics, in my opinion, are better treated elsewhere.

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Summary: Classic that Needs to Address New Products
Review: This is the classic text, but it only gets four stars for not keeping up with new developments. The capital structure of corporations can be easily changed with off balance sheet transactions: off-shore vehicles, total return swaps, and derivatives. This was Enron's downfall, and total return swaps on a corporations own equity are merely hidden loans that are toxic convertibles. The credit default swap market alone grew to $2 trillion from only $200 billion 6 years ago, and total return swaps (another credit derivative) have grown even more exponentially. Anyone interested in finance will also want to read "Credit Derivatives" by Tavakoli which explains these products and their uses.

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Summary: Book ...
Review: This books [is bad] primarily because it is called "Principles of Corporate Finance". This is NOT AN INTRO book to finance. An intro book would have spent more time going over basic concepts like balance sheets and income statement. Also the sample problems at times can be really hard to follow. I highly recommend using Fundamentals of Corporate Finance by Ross, Westerfield, and Jordan as a supplement to this if you have no finance background.

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Summary: Inappropriate for intro MBA finance but professors love it
Review: The wide range of reactions to this textbook simply indicates the fact that it is NOT actually a good introductory text for the typically diverse MBA student mix found in any intro-level course. Yet that is PRECISELY the usage for which it is known: intro-level corporate finance classes in MBA programs. My MBA program also used B&M, but a group of us simultaneously volunteered for a focus group run by the publisher of Aswath Damodaran's excellent Corporate Finance textbook. We followed the Damodaran text alongside our B&M text for the entire semester. At semester's end EVERY SINGLE MBA IN THE FOCUS GROUP preferred Damodaran's text -- and the group contained electrical engineers with graduate degrees and former I-bank analysts as well as former ballet dancers and journalists. Damodaran is an award-winning finance professor at NYU. B&M is heavy on the academic scholarship, far removed from the real hurley-burley of Wall Street, and despite the humour (which I did enjoy) it cannot successfully meet the needs of a broad range of students. Yet it continues to be used for just that purpose -- indeed, my MBA alma mater ignored the student feedback and continues to use B&M, the professors' darling... If you are suffering with this text, do yourself a favour and get Damodaran's, which is a text designed to TEACH by a professor who truly cares that ALL his students master corporate finance.

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Summary: Excellent introduction
Review: I did not have any previous knowledge of finance before reading this book, but all the more with mathematics. This book suited my needs perfectly, because it started from the basics and covered a (from my point of view) wide range of topics in an interesting an easily understandable manner. I was actually hesitant about taking a course in finance, because in my mind it was as boring a subject as can be. I have to say that this book proved my prejudices wrong time and again, and I ended up reading it with great interest. I highly recommend it.

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Summary: Waste of time!
Review: The whole book is one giant mistake. This starts with the unlogic structure, poor visualization, non-related exercises and ends with lecturers' material (Powerpoint presentation) that is loaded with mistakes.
This book puzzles more than it helps.
One huge catastroph that should be forbidden for any serious student of Corporate Finance. Scandal!

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Summary: Authors reputation used as marketing gimmick.
Review: Can anyone make sense of all the different versions of this book as well as all the different packaging options? What's the difference between the 6th edition, published in Dec 2000 and the 6th edition, revised June 2001. Wouldn't that be the 7th edition?

How do "Principles of Corporate Finance" and "Fundamentals of Corporate Finance", by the same authors, differ?

In addition to these two books there is a Student Guide, Solutions Guide and an Instructors Guide. What's included in "The Complete Package"? What's in "The Wall Street Journal edition"? What's on the CD ROM? What's the reference to the word Powerweb on the cover?

Does anyone realize that the authors/publisher are just capitalizing on the success of the original text and their reputation to crank out overpriced error filled updates.