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Ivo Welch, Corporate Finance: 4th Edition, 2017

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You can purchase a paperback for $60 (and sometimes on sale $48). The printing vendor is lulu. This is about as cheap as what you can print and bind the book yourself for—and then you would have a mess of a loose-leaf collection. Lulu is more efficient and better than your corner printshop. However, I take no responsibility for lulu: printing is Lulu's business. If your experience with lulu is bad, please let their customer service (and me) know. I can always switch printers.

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Order General Version Print Order MFE Version Print

The pdf version that you can download below has a gray watermark image (that the printed version on lulu does not). This is deliberate and will not change. It is a (very small) incentive in favor of the printed version.

The book should have so few errata that we can list them here.

  1. Introduction General MFE
  2. Part I: Value and Capital Budgeting General MFE
  3. Present Value General MFE
  4. Stock and Bond Valuation: Annuities and Perpetuities General MFE
  5. A First Encounter with Capital Budgeting Rules General MFE
  6. Time-Varying Rates of Return and the Yield Curve General MFE
  7. Uncertainty, Default, and Risk General MFE
    • Errata: p. 117, replace 'higher' with 'the same' in Do lenders and creditors end up with higher average rates of return?
  8. Part II: Risk and Return General MFE
  9. A First Look at Investments General MFE
  10. Investor Choice: Risk and Reward General MFE
  11. Benchmarked Costs of Capital General MFE
    • Errata: p.206, Geometric or Arithmetic Cash Flows and Benchmarks?: 40% in the example is a standard deviation, not a variance.
  12. The Capital Asset Pricing Model General MFE
    • Errata: p.237, EOC Q10.27. Replaces 7% with $1,000.
  13. Part III: Market Efficiency General MFE
  14. Market Imperfections General MFE
  15. Perfect and Efficient Markets, and Classical and Behavioral Finance General MFE
  16. Capital Budgeting Applications and Pitfalls General MFE
  17. Part IV: Real-World Applications General MFE
  18. From Financial Statements to Economic Cash Flows General MFE
  19. Valuation from Comparables and Financial Ratios General MFE
  20. Part V: Capital Structure and Payout Patterns General MFE
  21. Corporate Claims General MFE
  22. Capital Structure in a Perfect Market General MFE
  23. Taxes and Capital Structure General MFE
  24. More Imperfect-Market Capital Structure General MFE
  25. Equity Payouts: Dividends and Share Repurchases General MFE
  26. Part VI: Projecting the Future General MFE
  27. Pro Forma Financial Statements and the PepsiCo Case General MFE with a humorous take

For instructor flexibility sake, important chapters like options and derivatives, international finance, corporate governance, etc., will be available in the same pdf format, but not in the printed version. The companion is not yet updated to v4, much less edited or organized. It has appendixes for chapters 3,5,8,9,12,13,17,18,21; and chapters on [22] capital structure changes; [23] empirical capital structure patterns; [24] investment banks and M&A; [25] corporate governance; and [26] international finance; and [27] Options and Risk Management.

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

Ivo Welch, UCLA, 2017-.

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