Corporate Finance
FUNDAMENTALS OF
Corporate Finance
Jonathan Berk
Stanford University
Peter DeMarzo
Stanford University
Jarrad Harford
University of Washington
ISBN 0-558-65200-X Fundamentals of Corporate Finance, by Jonathan Berk, Peter DeMarzo, and Jarrad Harford. Published by Prentice Hall. Copyright © 2009 by Pearson Education, Inc.
Editor in Chief: Donna Battista Sr. Development Editor: Rebecca Ferris Market Development Manager: Dona Kenly Assistant Editors: Sara Holliday, Kerri McQueen Managing Editor: Jeff Holcomb Senior Production Supervisor: Meredith Gertz Digital Asset Manager: Marianne Groth Supplements Editor: Heather McNally Director of Media: Susan Schoenberg Senior Media Producer: Bethany Tidd MyFinanceLab Content Lead: Miguel Leonarte Marketing Assistant: Ian Gold Senior Manufacturing Buyer: Carol Melville Manager, Rights and Permissions: Zina Arabia Manager, Research Development: Elaine Soares Image Permission Coordinator: Annette Linder Rights and Permissions Advisor: Shannon Barbe Photo Researcher: Beth Anderson Senior Author Support/Technology Specialist: Joe Vetere Project Management: Nancy Freihofer Production Coordination: Janette Krauss Composition, Illustrations, and Alterations: Nesbitt Graphics/Thompson Steele Cover and Text Designer: Gillian Hall, The Aardvark Group Publishing Services Cover image: ©Getty Images/ David McNew Library of Congress Cataloging-in-Publication Data Berk, Jonathan B., 1962Fundamentals of corporate finance/Jonathan Berk, Peter DeMarzo, Jarrad Harford. p. cm. Includes bibliographical references and index. ISBN 978-0-201-74159-9 (pbk.: alk. paper) 1. Corporations—Finance. I. DeMarzo, Peter M. II. Harford, Jarrad V. T. III. Title. HG4026.B464 2008 658.15—dc22 2008032455
ISBN-13: 978-0-201-74159-9 ISBN-10: 0-201-74159-8
Copyright © 2009 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means,
Corporate Finance
Jonathan Berk
Stanford University
Peter DeMarzo
Stanford University
Jarrad Harford
University of Washington
ISBN 0-558-65200-X Fundamentals of Corporate Finance, by Jonathan Berk, Peter DeMarzo, and Jarrad Harford. Published by Prentice Hall. Copyright © 2009 by Pearson Education, Inc.
Editor in Chief: Donna Battista Sr. Development Editor: Rebecca Ferris Market Development Manager: Dona Kenly Assistant Editors: Sara Holliday, Kerri McQueen Managing Editor: Jeff Holcomb Senior Production Supervisor: Meredith Gertz Digital Asset Manager: Marianne Groth Supplements Editor: Heather McNally Director of Media: Susan Schoenberg Senior Media Producer: Bethany Tidd MyFinanceLab Content Lead: Miguel Leonarte Marketing Assistant: Ian Gold Senior Manufacturing Buyer: Carol Melville Manager, Rights and Permissions: Zina Arabia Manager, Research Development: Elaine Soares Image Permission Coordinator: Annette Linder Rights and Permissions Advisor: Shannon Barbe Photo Researcher: Beth Anderson Senior Author Support/Technology Specialist: Joe Vetere Project Management: Nancy Freihofer Production Coordination: Janette Krauss Composition, Illustrations, and Alterations: Nesbitt Graphics/Thompson Steele Cover and Text Designer: Gillian Hall, The Aardvark Group Publishing Services Cover image: ©Getty Images/ David McNew Library of Congress Cataloging-in-Publication Data Berk, Jonathan B., 1962Fundamentals of corporate finance/Jonathan Berk, Peter DeMarzo, Jarrad Harford. p. cm. Includes bibliographical references and index. ISBN 978-0-201-74159-9 (pbk.: alk. paper) 1. Corporations—Finance. I. DeMarzo, Peter M. II. Harford, Jarrad V. T. III. Title. HG4026.B464 2008 658.15—dc22 2008032455
ISBN-13: 978-0-201-74159-9 ISBN-10: 0-201-74159-8
Copyright © 2009 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means,