Fifth Edition
Corporate Financial Management
Bridging the Gap Between Theory and Practice
Douglas R. Emery
John D. Finnerty
John D. Stowe

This book was the first—and remains the only—corporate finance textbook written by an author team that includes a full-time practitioner. This rare combination of expertise and experience illustrates the Principle of Comparative Advantage, in that it is uniquely able to truly bridge the gap between theory and practice. It was also designed with the needs of both faculty and students in mind, with a format that provides the instructional support that will enhance student and faculty success. Important features include:
• Multiple Levels of Problems and Questions
The assignment material at the end of each chapter includes three different levels of problems, A (Basic), B, and C (Advanced), and two different levels of questions, Questions and Challenging Questions. This unique and carefully designed feature provides a more efficient and flexible way for instructors to assign the most appropriate level of problems and questions, thereby reducing their opportunity cost in preparing for class and improving the likelihood
of success for students.
• More Worked-Out Examples
The narrative of each chapter includes detailed worked-out examples that parallel each of the A- and B-type problems, as well as the conceptual and factual information needed to directly answer all of the Questions. By including more of these worked-out examples and by systematically aligning them with the end of chapter assignments, this textbook provides a clearer, more structured explanation of the material, leading to improved student understanding and performance.
• Principles of Finance Framework
The authors were the first to establish a comprehensive set of Principles of Finance as a framework for learning finance. This framework helps students to develop—and apply—financial intuition to solve both current real world problems, as well as new ones that will emerge long after they complete their class.
• The Importance of Research
There are bibliographies at the end of each chapter that highlight, and help students understand, the important role that research plays in our understanding of finance.