The Short Introduction to Corporate Finance provides an accessibly written guide to contemporary financial institutional practice. Rau deploys both his professional expertise and experience of teaching MBA and graduate-level courses to produce a lively discussion of the key concepts of finance, liberally illustrated with real-world examples. Built around six essential paradigms, he builds an integrated framework covering all the major ideas in finance over the past half-century. Ideal for students and practitioners alike, it will become core reading for anyone aspiring to become an effective manager.
Corporate finance is a pretty dense subject, definitely for non-finance folks. Despite having studied it over years through various courses and exposure in the jobs, I continue to be mystified by it (to put it very mildly!). So, I was quite anxious when we had a course on #CorporateFinance as part of my #EFPM coursework. However, Prof Raghavendra Rau not only created a great environment for learning, but for the first time I actually managed to #learn something :). His book is a great starting point for anyone seeking clarity on this subject in some plain English (read not-too-complex-formulae!).
My biggest learning from his sessions was the way he constantly reminded us of the first principle of finance - the no-arbitrage principle, or in layman's terms, there is no such thing as a free lunch. We are constantly bombarded by people claiming to make us rich overnight by investing in some shady schemes, it makes a lot of sense to remember that such claims are perhaps too good to be true, and hence best ignored! I especially liked the way he distils down entire field in six fundamental ideas and then builds the entire theory around them. I highly recommend the book too.