Principles of Corporate Finance

Principles of Corporate Finance

Richard A Brealey, Stewart C Myers and Franklin Allen

What it’s about

One of the most important text books covering Corporate Finance, this book covers all of the fundamental principles and concepts that provide the foundations of modern corporate finance. The book is good at explain the ‘why’ in addition to the ‘what’ on these principles. By explaining why companies and financial markets behave as they do, the book equips managers with the tools to make informed decisions, not just based on experience but backed by theory. The authors address controversies within financial theory, offering balanced viewpoints while emphasizing practical applications to increase company value.

Why I like it

One reason I like this book is that I used the edition present in 1988 (I think it was 2nd edition) when I taught my first class at Northwestern to the Kellogg MBAs. I loved learning finance through teaching these principles using this book. The book provides excellent coverage of all of the important corporate finance topics with sufficient theoretical explanation and real-world examples to enable any student (or teacher) to grasp the concept and be able to apply it.