Fundamentals of Corporate Finance

Stephen Ross is presently the Franco Modigliani Professor of Finance and Economics at the Sloan School of Management, Massachusetts Institute of Technology. One of the most widely published authors in finance and economics, Professor Ross is recognized for his work in developing the Arbitrage Pricing Theory and his substantial contributions to the discipline through his research in signaling, agency theory, option pricing, and the theory of the term structure of interest rates, among other topics. A past president of the American Finance Association, he currently serves as an associate editor of several academic and practitioner journals. He is a trustee of CalTech, a director of the College Retirement Equity Fund (CREF), and Freddie Mac. He is also the co-chairman of Roll and Ross Asset Management Corporation. Randoloph W. Westerfield is Dean of the Marshall School of Business at University of Southern California and holder of the Robert R. Dockson Dean's Chair of Business Administration. From 1988 to 1993, Professor Westerfield served as the chairman of the School's finance and business economics department and the Charles B. Thornton Professor of Finance. He came to USC from The Wharton School, University of Pennsylvania, where he was the chairman of the finance department and member of the finance faculty for 20 years. His areas of expertise include corporate financial policy, investment management and analysis, mergers and acquisitions, and stock market price behavior. Professor Westerfield has served as a member of the Continental Bank trust committee, supervising all activities of the trust department. He has been consultant to a number of corporations, including AT&T, Mobil Oil and Pacific Enterprises, as well as to the United Nations, the U.S. Department of Justice and Labor, and the State of California. Bradford D. Jordan is Professor of Finance and Gatton Research Fellow in the Carol Martin Gatton College of Business and Economics at the University of Kentucky. He has a long-standing interest in both applied and theoretical issues in corporate finance, and has extensive experience teaching all levels of corporate finance and financial management policy. Professor Jordan has published numerous articles on issues such as cost of capital, capital structure, and the behavior of security prices.

Part 1: Overview of Corporate FinanceChapter 1: Introduction to Corporate FinanceChapter 2: Financial Statements, Taxes, and Cash FlowPart 2: Financial Statements and Long-Term Financial PlanningChapter 3: Working with Financial StatementsChapter 4: Long-Term Financial Planning and GrowthPart 3: Valuation of Future Cash FlowsChapter 5: Introduction to Valuation: The Time Value of MoneyChapter 6: Discounted Cash Flow ValuationChapter 7: Interst Rates and Bond ValuationChapter 8: Stock ValuationPart 4: Capital BudgetingChapter 9: Net Present Value and Other Investment CriteriaChapter 10: Making Capital Investment DecisionsChapter 11: Project Analysis and EvaluationPart 5: Risk and ReturnChapter 12: Some Lessons from Capital Market HistoryChapter 13: Return, Risk, and the Security Market LinePart 6: Cost of Capital and Long-Term Financial PolicyChapter 14: Cost of CapitalChapter 15: Raising CapitalChapter 16: Financial Leverage and Capital Structure PolicyChapter 17: Dividends and Dividend PolicyPart 7: Short-Term Financial Planning and ManagementChapter 18: Short-Term Finance and PlanningChapter 19: Cash and Liquidity ManagementChapter 20: Credit and Inventory ManagementPart 8: Topics in Corporate FinanceChapter 21: International Corporate FinanceChapter 22: Risk Management: An Introduction to Financial EngineeringChapter 23: Options and Corporate SecuritiesChapter 24: Mergers and AcquisitionsChapter 25: Leasing