Following are key revisions and updates to this edition:

• End of chapter mini-cases, focusing on common company situations that embody important topics in corporate finance. Each case presents a new scenario, data and a dilemma, and several questions at the end of the case require students to analyze and focus on all of the material they learned in the chapter.
• Significant reorganization and expanded content of financial accounting, cash flows, and growth. Material on corporate financial models and long-term planning is now included with the early chapters to provide earlier, more foundational coverage of cash flow (Chapter 2) and sustainable growth (Chapter 3) to bridge accounting and valuation concepts.
• New material on alternatives to NPV such as modified internal rate of return (IRR) and better treatment of the profitability index is presented in Chapter 6. There is also new material on capital budgeting best practices, where the authors relate what companies actually do to theoretical models, showcasing the latest research and scholarship.
• New material on risk analysis and real options (Chapter 8) is reflected in the new chapter title: Risk Analysis, Real Options, and Capital Budgeting. This reinforces the capital budgeting material from the previous chapter. New coverage of real options is now earlier in the book, as is coverage of Monte Carlo simulation techniques.
• New material on efficient markets behavioral finance (Chapter 13). This content covers a new way of thinking about financial markets and behavioral users versus efficient markets theory.
• The latest theoretical developments in capital budgeting, capital structure, and dividends throughout Chapters 7, 15, 16, and 18. The recent tax code is also included, which covers the new marginal individual tax rates and the lower taxes on dividends and capital gains.
• New problems added in most chapters.