The Best Widely-Used Corporate Finance Textbook

  • Now free for download but also featuring an affordable $60 paperback version.
  • (Past editions have an even wider GNU license. See here for details.)
  • 5th edition expected May 2021—with modifiable source on Overleaf.


A quick read. Please do not email me unless you have read the FAQ first.


Teaching slides used in a UCLA intro course for MFE students in 2017

On-Line Testing

Two Good Choices Now:

  • student self-testing, course administration;
  • accepi: supported, universal, affordable.

MFE Edition

for Masters of Finance or Masters of Data Sciences Programs, with extra programming and data resources. Data Sets: 100 Large Stocks in 2005 100 Large Stocks in 2015.

Extended MFE Support Materials

based on the R Statistical Computing Language, courtesy of Yuxing (Paul) Yan (SUNY Geneseo). Highly Recommended. (support materials.)
textbook cover
(Planned Updates in 2021: (1) bringing in more recent stock market data. The chapters will not change. (2) some more visual and audio multi-media content, with ed.movies. This includes some humourous videos, like the ones linked below, as well as a podcast version of some chapter [to see if there is interest].)

Full Instructor Support

Instructor materials are available only to legitimate instructors for university-registered courses, never to students under any circumstances. If you have the required credentials, please contact for access.

Check out the coverage and feature comparison for Berk-Demarzo, Brealy-Myers-Allen, Ross-Westerfield-Jaffe, and Welch, and the instructor preface for some further perspectives and comparisons.

I also posted my 2018 presentation to the FMA why this book is the best there is at here.


I have various other chapters (e.g., on empirical capital structure in the U.S., governance, international finance, and options), but they are not yet well formatted. Use at your own risk: companion 2020.


An old writeup, but still the right way to teach the CAPM, but never fully developed.

Your Own E-Quizzes

If you have a set of quizzes with multiple choice or numerical answers that you designed yourself and that you would like to be coded into an online platform and that you would be happy to share with other instructors, we will code them for you into


This website is also available in encrypted form in case you are paranoid.

Please leave a non-anonymous review. (You will have to authenticate with a google account.)

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