Corporate Finance, by Ross, Westerfield, Jaffe, and Jordan, was written for the corporate finance course at the MBA level and the intermediate course in many undergraduate programs. The text emphasizes the modern fundamentals of the theory of finance while providing contemporary examples to make the theory come to life. The authors aim to present corporate finance as the working of a small number of integrated and powerful intuitions rather than a collection of unrelated topics. They develop the central concepts of modern finance: arbitrage, net present value, efficient markets, agency theory, options, and the trade-off between risk and return, and use them to explain corporate finance with a balance of theory and application. The 13th edition also welcomes a special contributor, Professor Kelly Shue of Yale University.

Contents

Part I: Overview

Chapter 1: Introduct ion to Corporate Finance

Chapter 2: Financial Statements and Cash Flow

Chapter 3: Financial Statements Analysis and Financial Models

Part II: Valuation and Capital Budgeting

Chapter 4: Discounted Cash Flow Valuation

Chapter 5: Net Present Value and Other Investment Rules

Chapter 6: Making Capital Investment Decisions

Chapter 7: Risk Analysis, Real Options, and Capital Budgeting

Chapter 8: Interest Rates and Bond Valuation

Chapter 9: Stock Valuation

Part III: Risk

Chapter 10: Lessons from Market History

Chapter 11: Return, Risk, and the Capital Asset Pricing Model

Chapter 12: An Alternative View of Risk and Return

Chapter 13: Risk, Cost of Capital, and Valuation

Part IV: Capital Structure and Dividend Policy

Chapter 14: Efficient Capital Markets and Behavioral Challenges

Chapter 15: Long-Term Financing

Chpater 16: Capital Structure: Basic Concepts

Chapter 17: Capital Structure: Limits to the Use of Debt

Chapter 18: Valuation and Capital Budgeting for the Levered Firm

Chapter 19: Dividends and Other Payouts

Part V: Long-Term Financing

Chapter 20: Raising Capital

Chapter 21 : Leasing

Part VI: Options, Futures, and Corporate Finance

Chapter 22: Options and Corporate Finance

Chapter 23: Options and Corporate Finance: Extensions and Applications

Chapter 24: Warrants and Convertibles

chapter 25: Derivatives and Hedging Risk

Part VII: Short-Term Finance

Chapter 26: Short-Term Finance and Planning

Chapter 27: Cash Management

Chapter 28: Credit and Inventory Management

Part VIII: Special Topics

Chapter 29: Mergers, Acquisitions, and Divestitures

Chapter 30: Financial Distress

Chapter 31 : International Corporate Finance

About the Authors

Stephen Ross

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. 

Randolph Westerfield

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.

Jeffrey Jaffe

Jeffrey F. Jaffe has been a frequent contributor to finance and economic literature in such journals as the Quarterly Economic Journal, The Journal of Finance, The Journal of Financial and Quantitative Analysis, The Journal of Financial Economics, and The Financial Analysts Journal . His best-known work concerns insider trading, where he showed both that corporate insiders earn abnormal profits from their trades and that regulation has little effect on these profits. He has also made contributions concerning initial public offerings, the regulation of utilities, the behavior of market makers, the fluctuation of gold prices, the theoretical effect of inflation on the interest rate, the empirical effect of inflation on capital asset prices, the relationship between small-capitalization stocks and the January effect, and the capital structure decision.

Bradford Jordan

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.