Corporate Finance — Berk & DeMarzo Review
Quick Answer: Corporate Finance by Jonathan Berk and Peter DeMarzo is one of the leading corporate finance textbooks worldwide, distinguished by its unified Law of One Price valuation framework. Widely used at UK universities including Warwick, Manchester, LSE, and Edinburgh.
Yes — an excellent corporate finance textbook, particularly strong on its unified valuation approach. Check your reading list. The 5th Global Edition (ISBN 9781292304151) is the current UK edition.
📋 In This Review
What Is Berk & DeMarzo Corporate Finance?
Corporate Finance by Jonathan Berk and Peter DeMarzo (Stanford Graduate School of Business) is now in its 5th Global Edition. Published by Pearson, it organises all of corporate finance around a single principle: the Law of One Price — that in competitive markets, equivalent cash flows must have the same price. This unifies NPV, capital structure, risk analysis, and options in one coherent framework.
| Authors: | Jonathan Berk & Peter DeMarzo (Stanford) |
| Current UK Edition: | 5th Global Edition |
| Publisher: | Pearson Education |
| ISBN (Global Ed): | 9781292304151 |
| Used at: | Warwick, Manchester, LSE, Edinburgh, Bristol, Sheffield |
| Best for: | Finance, economics, MBA students wanting a unified valuation framework |
What’s Inside the 5th Edition
Capital Budgeting and NPV: Law of One Price developed from first principles. Real company examples throughout.
Risk and Return: CAPM, beta estimation, and cost of capital with extensive real data. Empirical asset pricing is particularly strong.
Capital Structure: Modigliani-Miller, leverage, and financial distress with the unified framework making connections especially clear.
Excel Integration: “Using Excel” boxes throughout show how to apply corporate finance concepts using spreadsheets — increasingly important for finance careers.
Options: Built directly from the Law of One Price rather than treated as a separate topic — particularly clear treatment.
“The Law of One Price framework made everything click. Once you understand that one idea, the rest of corporate finance follows logically.”
— James, MSc Finance, University of Warwick
Global Edition vs Core Edition
Corporate Finance (Global Edition) — ISBN 9781292304151 — the full 1,184-page text. Standard for most undergraduate and MBA programmes.
Corporate Finance: The Core — ISBN 9781292431611 — streamlined 816-page version for one-semester courses. Significantly cheaper if your module specifies it.
💰 Save £25–40 Buying Used
A used 4th Global Edition covers the same core content and is available on AbeBooks for £20–30 versus £55–65 new for the 5th.
Is Berk & DeMarzo better than Brealey Myers?
They are different rather than one being better. Berk & DeMarzo uses the Law of One Price to unify all of corporate finance in a single coherent framework. Brealey Myers is more theory-driven and is the more authoritative reference. Both are excellent; your university reading list should guide your choice.
What is the difference between Berk DeMarzo Corporate Finance and Corporate Finance The Core?
Corporate Finance Global Edition (9781292304151) is the full 1,184-page comprehensive text. The Core (9781292431611) is a streamlined 816-page version for one-semester courses. Check which your module specifies — The Core is significantly cheaper.
Which edition of Berk DeMarzo should I buy?
The 5th Global Edition is current. A used 4th Global Edition covers the same core content at significantly lower cost — typically £20-30 on AbeBooks. Check your reading list before buying.
Is Berk & DeMarzo suitable for MBA students?
Yes — widely used on MBA programmes at Warwick, Manchester, LSE, and Edinburgh. Its unified valuation framework suits MBA students who need to master corporate finance efficiently. LBS and Oxford Saïd tend to use Brealey Myers.
Last Updated: Last Updated: July 2026 | Author: Textbooks.co.uk Editorial Team
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