There should be two categories for reviews of this book. One is for those are looking for a review or reference and one for those who are learning the material for the first time. This review takes the latter perspective. If this is your first time learning the material, this book is pretty good at some things and pretty awful at others. My rating of 3 stars is an average score of 2 main categories of corporate finance
- Project Investment Decision (NPV/ Capital Budgeting/Project Valuation/ Real Options) - 5 Stars - The book does a very good job here. This is somewhat mechanical and by doing problems, one can understand and master this important material on one's own.
- Capital Structure (obtaining the money for these investments, paying dividends, and how these decisions about debt/ equity affect the value of the firm) - 2 stars. The book does provide some intuition for these economic concepts, but overall the coverage is poor. The problems at end of the chapters are poor and do not drill in these important concepts. I found Donald Chew's New Corporate Finance to be an excellent complement. By reading this collection of articles one can easily grasp how these academic concepts are used in the real world.