There have been organizational changes to many of the chapters, including:

• Chapter 4, Valuing Bonds, is now exclusive to the concept of the valuation of bonds. This material was previously in Chapter 23 of the prior edition. In this early bond chapter the issue of default risk is skipped over and mentioned in Chapter 24, Credit Risk and the Value of Corporate Debt.
• Chapter 5, The Value of Common Stocks, is devoted solely to the valuation of common stocks. A short illustration of how DCF models can be used to value entire businesses as well as individual stocks has been added to this chapter.
• The complications of valuing leveraged businesses is presented in Chapter 20, Financing and Valuation.
• Material on organization of capital budgeting within the firm has been moved from Chapter 13 to Chapter 11. Therefore, Chapters 13 is concerned exclusively with agency problems and management incentives. A section on the pressure for corporations to manage earnings has been added to further illustrate this topic.
• Chapter 14, Efficient Markets and Behavioral Finance, includes an expanded treatment of this topic along with a new discussion on the limits of arbitrage.
• Part 9 changes: Chapter 30 the material on working capital has been arranges and includes an expanded section on inventory management. The discussion of bank lending in Chapter 31 has been substantially rewritten. For example, there is an expanded description of syndicated lending, bank loan sales, and the use of collateralized loan obligations (CLOs).