Fundamentals of Corporate Finance

The late Stephen A. Ross was 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 was known for his work in developing the Arbitrage Pricing Theory as well as his substantial contributions to the discipline through his research on 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 also served as an associate editor of various academic and practitioner journals. He was a trustee of CalTech.  Bradford D. Jordan is Visiting Scholar in the Warrington College of Business at the University of Florida. He previously held the duPont Endowed Chair in Banking and Financial Services at the University of Kentucky, where he was department chair for many years. Professor Jordan has published numerous articles in top journals on issues such as cost of capital, capital structure, and the behavior of security prices. He is a past president of the Southern Finance Association, and he is coauthor of Fundamentals of Investments: Valuation and Management, 9e, a leading investments text, also published by McGraw Hill. Randolph W. Westerfield is Dean Emeritus and the Charles B. Thornton Professor in Finance Emeritus at the University of Southern California’s Marshall School of Business. Professor Westerfield came to USC from the Wharton School, University of Pennsylvania, where he was the chairman of the finance department and a member of the finance faculty for 20 years. He is a member of the board of trustees of Oaktree Capital mutual funds. His areas of expertise include corporate financial policy, investment management, and stock market price behavior.

Part 1: Overview of corporate financeChapter 1: Introduction to corporate financeChapter 2: Financial statements, taxes and cash flow
Part 2: Financial statements and long-term financial planningChapter 3: Working with financial statementsChapter 4: Long-term financial planning and corporate growth
Part 3: Valuation of future cash flowsChapter 5: First principles of valuation: the time value of moneyChapter 6: Valuing shares and bonds
Part 4: Capital budgetingChapter 7: Net present value and other investment criteriaChapter 8: Making capital investment decisionsChapter 9: Project analysis and evaluation
Part 5: Risk and returnChapter 10: Lessons from capital market historyChapter 11: Return, risk and the security market line
Part 6: Current investment decisionsChapter 12: Current investment decisionsChapter 13: Working capital managementChapter 14: Australian financial markets and liquidity management
Part 7: Long-term financingChapter 15: Capital markets and long-term financingChapter 16: Capital raising and the primary market
Part 8: Cost of capital and long-term financial policyChapter 17: Shareholder value and the cost of capitalChapter 18: Rewarding shareholders: setting dividend policyChapter 19: Financial leverage and capital structure policy
Part 9: Special topics in corporate financeChapter 20: Derivative securitiesChapter 21: International corporate financeChapter 22: Mergers and acquisitionsChapter 23: Leasing