,CORPORATE
FINANCE
S IX T H E D IT IO N
JONATHAN BERK
STANFORD UNIVERSITY
PETER D E MARZO
STANFORD UNIVERSITY
,Please contact https://support.pearson.com/getsupport/s with any queries on this content.
Cover Image: LP2 Studio/Shutterstock; EschCollection/Stone/Getty Images
Microsoft and/or its respective suppliers make no representations about the suitability of the information
contained in the documents and related graphics published as part of the services for any purpose. All such docu-
ments and related graphics are provided “as is” without warranty of any kind. Microsoft and/or its respective
suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties
and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and
non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or
consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action
of contract, negligence or other tortious action, arising out of or in connection with the use or performance of
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The documents and related graphics contained herein could include technical inaccuracies or typographical errors.
Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make
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shots may be viewed in full within the software version specified.
Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other coun-
tries. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation.
Copyright © 2024, 2021, 2018 by Jonathan B. Berk, Peter M. DeMarzo and Jarrad V.T. Harford. All Rights
Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permis-
sion should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system,
or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For
information regarding permissions, request forms, and the appropriate contacts within the Pearson Education
Global Rights and Permissions department, please visit www.pearsoned.com/permissions/.
Acknowledgments of third-party content appear on the appropriate page within the text. p. 8 David Viniar; p. 16
Adena Friedman; p. 29 Ruth Porat; p. 116 © Microsoft Corporation; p. 117 © Microsoft Corporation; p. 137
© Microsoft Corporation; p. 162 Janet Yellen; p. 200 Carmen M. Reinhart; p. 219 Dick Grannis; p. 242 © Microsoft
Corporation; p. 255 © Microsoft Corporation; p. 262 David Holland; p. 266 © Microsoft Corporation; p. 267
© Microsoft Corporation; p. 306 Susan Athey; p. 312 Fahmi Quadir; p. 374 Anne Martin; p. 434 Shelagh Glaser;
p. 448 © Microsoft Corporation; p. 470 Jonathan Clements; p. 546 Andrew Balson; p. 619 John Connors; p. 651
Zane Rowe; p. 704 Joseph L. Rice III; p. 709 © Microsoft Corporation; p. 773 Myron S. Scholes; p. 814
Kenneth Frazier; p. 837 Kevin Laws; p. 920 Mark Long; p. 1017 Lawrence E. Harris; p. 1086 Sally Johnson.
PEARSON, ALWAYS LEARNING, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or
its affiliates in the U.S. and/or other countries.
Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the
property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress
are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship,
endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship
between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors.
Library of Congress Cataloging-in-Publication Data
Library of Congress Control Number: 2022921270
ScoutAutomatedPrintCode
ISBN 10: 0-13-784502-2
ISBN 13: 978-0-13-784502-6
, To Natasha and Hannah, for the love
and joy. —J. B.
To Kaui, Pono, Koa, and Kai, for all the love
and laughter —P. D.
FINANCE
S IX T H E D IT IO N
JONATHAN BERK
STANFORD UNIVERSITY
PETER D E MARZO
STANFORD UNIVERSITY
,Please contact https://support.pearson.com/getsupport/s with any queries on this content.
Cover Image: LP2 Studio/Shutterstock; EschCollection/Stone/Getty Images
Microsoft and/or its respective suppliers make no representations about the suitability of the information
contained in the documents and related graphics published as part of the services for any purpose. All such docu-
ments and related graphics are provided “as is” without warranty of any kind. Microsoft and/or its respective
suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties
and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and
non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or
consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action
of contract, negligence or other tortious action, arising out of or in connection with the use or performance of
information available from the services.
The documents and related graphics contained herein could include technical inaccuracies or typographical errors.
Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make
improvements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screen
shots may be viewed in full within the software version specified.
Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other coun-
tries. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation.
Copyright © 2024, 2021, 2018 by Jonathan B. Berk, Peter M. DeMarzo and Jarrad V.T. Harford. All Rights
Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permis-
sion should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system,
or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For
information regarding permissions, request forms, and the appropriate contacts within the Pearson Education
Global Rights and Permissions department, please visit www.pearsoned.com/permissions/.
Acknowledgments of third-party content appear on the appropriate page within the text. p. 8 David Viniar; p. 16
Adena Friedman; p. 29 Ruth Porat; p. 116 © Microsoft Corporation; p. 117 © Microsoft Corporation; p. 137
© Microsoft Corporation; p. 162 Janet Yellen; p. 200 Carmen M. Reinhart; p. 219 Dick Grannis; p. 242 © Microsoft
Corporation; p. 255 © Microsoft Corporation; p. 262 David Holland; p. 266 © Microsoft Corporation; p. 267
© Microsoft Corporation; p. 306 Susan Athey; p. 312 Fahmi Quadir; p. 374 Anne Martin; p. 434 Shelagh Glaser;
p. 448 © Microsoft Corporation; p. 470 Jonathan Clements; p. 546 Andrew Balson; p. 619 John Connors; p. 651
Zane Rowe; p. 704 Joseph L. Rice III; p. 709 © Microsoft Corporation; p. 773 Myron S. Scholes; p. 814
Kenneth Frazier; p. 837 Kevin Laws; p. 920 Mark Long; p. 1017 Lawrence E. Harris; p. 1086 Sally Johnson.
PEARSON, ALWAYS LEARNING, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or
its affiliates in the U.S. and/or other countries.
Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the
property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress
are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship,
endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship
between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors.
Library of Congress Cataloging-in-Publication Data
Library of Congress Control Number: 2022921270
ScoutAutomatedPrintCode
ISBN 10: 0-13-784502-2
ISBN 13: 978-0-13-784502-6
, To Natasha and Hannah, for the love
and joy. —J. B.
To Kaui, Pono, Koa, and Kai, for all the love
and laughter —P. D.
