Principles of Finance

Zvi Bodie is Professor Emeritus at Boston University where he was the Norman and Adele Barron Professor of Management. He has served on the finance faculty at the Harvard Business School (1992–94) and MIT Sloan School of Management (2008-9). Among his many published books and textbooks is the best-selling Investments textbook with Alex Kane and Alan Marcus. Robert C. Merton is the School of Management Distinguished Professor of Finance at the MIT Sloan School of Management and John and Natty McArthur University Professor Emeritus at Harvard University. Merton received the Alfred Nobel Memorial Prize in Economic Sciences in 1997 for a new method to determine the value of derivatives. Richard T. Thakor is Associate Professor of Finance at the University of Minnesota, Carlson School of Management. He is a research affiliate at the MIT Laboratory for Financial Engineering (LFE) and at the WFA Center for Finance and Accounting Research (WFA-CFAR) at Washington University in St. Louis. He has published numerous academic articles in top economics, management, and finance journals, and has won multiple teaching awards.

• 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.

'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