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Book cover of Fundamentals of Corporate Finance

Fundamentals of Corporate Finance

by Jonathan B. Berk , Peter M. DeMarzo , Jarrad Harford

Summary & Key Takeaways

You know the feeling: millions of dollars are on the line, and everyone in the boardroom is looking at you. Are you about to make a visionary leap, or silently destroy your company’s wealth?

Today, we explore “Fundamentals of Corporate Finance” by Jonathan B. Berk, Peter M. DeMarzo, and Jarrad Harford. Discover why making massive strategic decisions based on intuition and flawed accounting metrics is a dangerous trap. We unpack the ultimate business decoder ring: the Valuation Principle and the superpower of Net Present Value (NPV). Learn why a dollar today is fundamentally worth more than a dollar tomorrow, and how to stop flying blind when evaluating your next big project.

Enjoyed this? Upgrade to our Premium feed for the full 18-minute deep dive where we reveal the mechanics of calculating your true Cost of Capital, a four-step framework for Working Capital Management, and the fatal mistake leaders make with debt versus equity. Equip yourself with the math that builds empires!

About the Author

Jonathan B. Berk

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Jonathan B. Berk is the A.P. Giannini Professor of Finance at the Stanford Graduate School of Business and a preeminent authority in corporate finance. He is best known for co-authoring the globally prominent "Corporate Finance" textbook. His award-winning research focuses on asset pricing, …

Peter M. DeMarzo

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Peter M. DeMarzo is a distinguished economist and the John G. McDonald Professor of Finance at the Stanford Graduate School of Business, where he also serves as interim Dean. He is a preeminent authority in corporate finance, known for co-authoring the leading "Corporate Finance" textbook series. …

Jarrad Harford

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Jarrad Harford is an acclaimed educator and authority in finance, serving as the Paul Pigott - PACCAR Professor of Finance and Chair of the Finance and Business Economics Department at the University of Washington’s Foster School of Business. He is a co-author of the prominent textbook "Fundamentals …

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