Essentials of Corporate Finance

by ROSS, WESTERFIELD, JORDAN

• ISBN13: 9780072946734
• ISBN10: 0072946733
• Edition: 5th
• Format: Hardcover
• Copyright: 2005-11-10
• Publisher: McGraw-Hill/Irwin

Summary

Essentials of Corporate Finance, 5/e by Ross, Westerfield, and Jordan is written to convey the most important concepts and principles of corporate finance at a level that is approachable for a wide audience. The authors retain their modern approach to finance, but have distilled the subject down to the essential topics in 18 chapters. They believe that understanding the "why" is just as important, if not more so, than understanding the "how," especially in an introductory course. Three basic themes emerge as their central focus: 1. An emphasis on intuition-separate and explain the principles at work on a common sense, intuitive level before launching into specifics. Underlying ideas are discussed first in general terms, then followed by specific examples that illustrate in more concrete terms how a financial manager might proceed in a given situation. 2. A unified valuation approach-Net Present Value is treated as the basic concept underlying corporate finance. Every subject the authors cover is firmly rooted in valuation, and care is taken to explain how decisions have valuation effects. 3. A managerial focus-Students learn that financial management concerns management. The role of financial manager as decision maker is emphasized and they stress the need for managerial input and judgment.

Author Biography

Bradford D. Jordan is Professor of Finance and holder of the Richard W. and Janis H. Furst Endowed Chair in Finance at the University of Kentucky. Randolph W. Westerfield is Dean Emeritus of the University of Southern California's Marshall School of Business and is the Charles B. Thornton Professor of Finance. Stephen A. Ross is the Franco Modigliani Professor of Finance and Economics at the Sloan School of Management, Massachusetts Institute of Technology.

Table of Contents

Part 1: Overview of Financial Management

1. Introduction to Financial Management

Part 2: Understanding Financial Statements and Cash Flow

2. Financial Statements, Taxes, and Cash Flows

3. Working with Financial Statements

Part 3: Valuation of Future Cash Flows

4. Introduction to Valuation: The Time Value of Money

5. Discounted Cash Flow Valuation

Part 4: Valuing Stocks and Bonds

6. Interest Rates and Bond Valuation

7. Equity Markets and Stock Valuation

Part 5: Capital Budgeting

8. Net Present Value and Other Investment Criteria

9. Making Capital Investment Decisions

Part 6: Risk and Return

10. Some Lessons from Capital Market History

11. Risk and Return

Part 7: Long-Term Financing

12. Cost of Capital

13. Leverage and Capital Structure

14. Dividends and Dividend Policy

15. Raising Capital

Part 8: Short-Term Financial Management

16. Short-Term Financial Planning

17. Working Capital Management

Part 9: Topics in Business Finance

18. International Aspects of Financial Management

Appendices

A. Mathematical Tables

B. Key Equations

C. Answers to Selected End-of-Chapter Problems

D. Using the HP-10B and TI BA II Plus Financial Calculators

Glossary

Name Index

Subject Index