Project Description
Fundamentals of Corporate Finance, 5th Edition
Parrino, Yong, Morkel-Kingsbury, Murray, Smales, Wei
Print ISBN: 9781394390793, Interactive eText ISBN: 9781394390809
Available from semester 1, 2026. Fundamentals of Corporate Finance, 5th Edition is a core resource for business students, particularly those who find the mathematical aspects of finance challenging. The text presents financial principles in a clear, logical sequence, supporting comprehension through a step-by-step approach. Beyond technical skills, the resource encourages the development of analytical thinking through local examples and real-world applications. This helps students build the intuition required to apply financial tools effectively in practice.
The interactive eText is available in our low-cost subscription platform, Wiley Business Now. It also includes an Instructor Resource Toolkit and is supported by our local Wiley team.
Table of contents
1.1 The role of the financial manager
1.2 Forms of business organisation
1.3 Managing the financial function
1.4 The goal of the company
1.5 Agency conflicts: separation of ownership and control
1.6 The importance of ethics in business
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
2.1 The financial system
2.2 Direct financing
2.3 Types of financial markets
2.4 Financial institutions and indirect financing
2.5 The determinants of interest rate levels
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
3.2 The statement of financial position
3.3 The statement of profit or loss and other comprehensive income
3.4 The statement of changes in equity
3.5 Cash flows
3.6 Tying the financial statements together
3.7 Company income taxConcept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
4.2 Vertical analysis of financial statements
4.3 Financial ratios and financial performance
4.4 The DuPont system: a diagnostic tool
4.5 Selecting a benchmark
4.6 Using financial ratios
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
5.1 The time value of money
5.2 Future value and compounding
5.3 Present value and discounting
5.4 Additional concepts and applications
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
6.1 Multiple cash flows
6.2 Level cash flows: annuities and perpetuities
6.3 Perpetuities
6.4 The effective annual interest rate
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
7.2 Quantitative measures of return
7.3 Expected returns
7.4 The variance and standard deviation as measures of risk
7.5 Risk and diversification
7.6 Systemic risk
7.7 The Capital Asset Pricing Model
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
8.2 Corporate bonds
8.3 Bond valuation
8.4 Bond yields
8.5 Interest rate risk
8.6 The structure of interest rates
8.7 The term structure of interest rates
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
9.1 The market for shares
9.2 Ordinary and preference shares
9.3 The general dividend valuation model
9.4 Share valuation: some simplifying assumptions
9.5 Valuing preference shares
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
10.1 An introduction to capital budgeting
10.2 Net present value
10.3 The payback period
10.4 The accounting rate of return
10.5 Internal rate of return
10.6 Capital budgeting in practice
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
11.2 Estimating cash flows in practice
11.3 Projects with different lives
11.4 When to harvest an asset
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
12.2 Calculating operating leverage
12.3 Break-even analysis
12.4 Risk analysis
12.5 Investment decisions with capital rationing
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
13.2 The cost of debt
13.3 The cost of equity
13.4 Using the WACC in practice
Concept check
Summary
Key terms
Self-study problems
Critical thinking
Questions and problems
Endnotes
Acknowledgements
14.2 Divisional performance measurement
14.3 Investment centre performance evaluation
14.4 Environmental and social performance
14.5 Individual performance measurement
14.6 Non-financial performance evaluation
14.7 Data visualisation
Concept check
Summary of learning objectives
Key terms
Apply your knowledge
Self-evaluation activities
Comprehension questions
Exercises
Problems
Decision-making activities
Authors
Robert Parrino
Hue Hwa Au Yong (Monash)
Nigel Morkel-Kingsbury (RMIT)
James Murray (Consultant)
Lee Smales (UWA)
Xiaoting Wei (ANU)
Explore our content
A foundational resource for business students, particularly those navigating the mathematical components of finance.
This edition reflects the latest changes in Australia’s financial environment, including updates to legislation, regulatory frameworks, and sustainability reporting requirements.
Students are introduced to current issues such as climate-related financial disclosures, minimum tax reforms, and sustainable finance initiatives—ensuring they are prepared to engage with current and emerging industry expectations. Local case studies and practical examples reinforce the application of financial tools in real-world business contexts.
This award-winning eBook edition, recognised by the Australian Educational Publishing Awards for best Tertiary (Adaptation) Teaching and Learning title (digital), includes a range of digital learning tools designed to support active learning.
What’s in Fundamentals of Corporate Finance, 5th Edition?
New to this edition:
- Climate-related financial disclosures: Incorporates Australia’s mandatory climate reporting requirements, effective from July 2024, including risk, governance, and emissions target disclosures.
- Updated legislative context: Reflects the latest legislative, statistical, and economic changes to ensure content accuracy and relevance in today’s financial environment.
- Global minimum tax implementation: Covers Australia’s adoption of the OECD’s GLoBE framework, introducing a 15% minimum tax for multinationals earning over AU$1.2 billion.
- Sustainable finance roadmap & NZEA: Examines Australia’s policy direction under the Sustainable Finance Roadmap and the role of the Net Zero Economy Authority in guiding low-emissions investment.
- Thin capitalisation reforms: Explores recent adjustments to Australia’s thin capitalisation rules, aligning with OECD guidance and introducing an earnings-based approach.
- Enhanced regulatory oversight: Highlights the intensified scrutiny by ASIC and APRA on both financial and non-financial reporting, underscoring the importance of compliance in modern finance.
Key features:
- Conceptual foundation: Emphasises an intuitive approach that builds a strong understanding of key financial principles.
- Practitioner insights: Includes interviews with ANZ-based practitioners for real-world perspectives.
- Designed for retention: Key concepts and principles are reinforced throughout the text using ‘Key Point’ boxes.
- Comprehension exercises: Demonstrations containing quantitative problems with step-by-step solutions are throughout the text to help students better understand how to apply their intuition and analytical skills to solve important problems.
- Decision-making examples: Illustrate the financial manager’s decision-making process in context.
- Computational skills development: Guides students through essential financial calculations, supporting the development of accurate analysis and decision-making abilities.
- Interactive features: The interactive eText includes step-by-step problem-solving tutorials, activities, and concept-check questions that help students consolidate their understanding of the material.
- Excel integration: Includes Excel videos, templates, and end-of-chapter examples that demonstrate the use of spreadsheet tools in solving real-world financial problems.
Take a closer look:
Interactives and key features
Available as a digital eText or printed textbook, this title enables every student to master concepts and succeed in assessment. Lecturers are supported with an extensive, easy-to-use teaching and learning package.
‘How to Use Excel’ boxed features appear throughout the text, teaching students how to apply key Excel functions to financial problems in a practical and accessible way.
Featured: 'How to use' excel content
Our digital eText includes perspectives from ANZ based practitioners on topics from the chapter.
Practitioner insight videos (eText)
Our digital eText features end-of-chapter multiple-choice quizzes that provide instant feedback, helping to reinforce understanding and support learning.
Concept check questions (eText)
Our digital eText features interactive activities that let you match, categorise, or sequence concepts by moving elements on-screen, actively reinforcing learning with immediate feedback.
Interactivities (eText)
Throughout the text, we emphasise the role of the financial manager as a decision maker. These examples, which emphasise the decision-making process rather than computation, provide students with experience in financial decision making. Each decision-making example outlines a scenario and asks the student to decide based on the information presented.
Decision-making problems
Demonstrations containing quantitative problems with step-by-step solutions are throughout the text to help students better understand how to apply their intuition and analytical skills to solve important problems.
Demonstration problem
Throughout our text, we emphasise the important concepts and principals by presenting them in key point boxes. These boxes provide a statement of an important finance concept, along with an intuitive example or explanation to help you understand the concept and develop finance intuition.
Key points
Students can personalise their eText by highlighting and taking notes, as well as other useful features including read aloud.
Personalisation features
Access options
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Student purchase options
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Winner at the Australian Educational Publishing Awards (EPAA) for Tertiary (Adaptation) Teaching and Learning Resource – Digital, for the eBook edition of Fundamentals of Corporate Finance.
Practice resources
Available exclusively in Wiley Business Now, inclusive of the semester or monthly subscription price.
Student Solution Manual
Answers to every odd-numbered question posed in the text. Students can check their understanding, boost self-study and excel at exam preparation.
Instructor Resource Toolkit
Our Instructor Resource Toolkit is designed to seamlessly integrate the text content into your teaching, saving you time and boosting student engagement. It includes a variety of customisable tools, guides and assessment.*
Pre-made PowerPoint slides save you time in your course set-up, while the ability to customise the content means you can build it to suit your courses learning outcomes.
The Solution Manual outlines answers to the practice questions within the text.
Access to a comprehensive LMS-ready test bank. This collection of customisable exam and quiz questions are designed to assess students’ understanding of key concepts and learning objectives.
Local Wiley support
This text is proudly published and supported by a local team dedicated to enriching learning experiences for ANZ based students and instructors.
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*The Instructor Resource Toolkit is only available to educators in Australian, New Zealand & Pacific Universities. Our team will verify all requests for access. Once your request is verified, you will be able to login and download the resources from the Instructor Companion site. *All prices on this page are AUD