Corporate Finance

Corporate Finance, 6th Edition

Jonathan Berk and Peter DeMarzo

What it’s about

This is one of the three best text books on corporate finance. (The other two are Principles of Corporate Finance, by Brealey, Myers and Allen, and Corporate Finance, by Ross, Westerfield, Jaffe, and Jordan). If I had to choose only one to cover everything related to corporate finance, this would be my choice.

Why I like it

This is an outstanding textbook covering all corporate finance topics. It has excellent coverage of everything, but I especially appreciate how they cover the discussion on incorporating the interest tax shield provided by debt. Given the choice between using the APV or WACC methods, Berk and DeMarzo walk the reader through the choice and the assumptions underlying each methodology.