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Corporate Finance Fourth Edition
The teaching and the practicing of corporate finance have become more challenging than ever before. The last several years have seen fundamental changes in financial markets and financial instruments. Scarcely a day goes by without an announcement in the financial press about such matters as takeovers. junk bonds. financial restruc-turing. initial public offerings. bankrupty and derivatives. Both the theory and practice of corporate finance have been moving ahead with uncommon speed. and our teaching must keep pace.
These developments place new burdens on the teaching of corporate finance. On one hand. the changing world of finance makes it more difficult to keep materials up to date. On the other hand. the teacher must distinguish the permanent from the temporary and avoid the temptation to follow fads. Our solution to this problem is to emphasize the modern fundamentals of the theory of finance and to make the theory come to life with contemporary examples. All too often the beginning student views corporate finance as a collection of unrelated topics that are unified largely because they are bound together between the covers of one book. As in the first and second editions. our aim is to present corporate finance as the working of a small number of integrated and powerful intuitions.
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