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.
Summary
The best-selling Fundamentals of Corporate Finance(FCF) has three basic themes that are the central focus
of the book:
1) An emphasis on intuition-the authors separate and explain the principles at work on a common sense, intuitive
level before launching into any specifics.
2) A unified valuation approach-net present value (NPV) is treated as the basic concept underlying corporate finance.
3) A managerial focus-the authors emphasize the role of the financial manager as decision maker, and they stress
the need for managerial input and judgment.
The Tenth Edition continues the tradition of excellence that has earned Fundamentals of Corporate Finance its
status as market leader. Every chapter has been updated to provide the most current examples that reflect corporate
finance in today's world. The supplements package has been updated and improved, and with the enhanced Connect
Finance and Excel Master, student and instructor support has never been stronger.
Table of Contents
Table of Contents
Part One: Overview of Corporate Finance
Chapter 1: Introduction to Corporate Finance
Chapter 2: Financial Statements, Taxes, and Cash Flow
Part Two: Financial Statements and Long-Term Financial Planning
Chapter 3: Working with Financial Statements
Chapter 4: Long-Term Financial Planning and Growth
Part Three: Valuation of Future Cash Flows
Chapter 5: Introduction to Valuation: The Time Value of Money
Chapter 6: Discounted Cash Flow Valuation
Chapter 7: Interest Rates and Bond Valuation
Chapter 8: Stock Valuation
Part Four: Capital Budgeting
Chapter 9: Net Present Value and Other Investment
Criteria
Chapter 10: Making Capital Investment Decisions
Chapter 11: Project Analysis and Evaluation
Part Five: Risk and Return
Chapter 12: Some Lessons from Capital Market History
Chapter 13: Return, Risk, and the Security Market Line
Part Six: Cost of Capital and Long-Term Financial Policy
Chapter 14: Cost of Capital
Chapter 15: Raising Capital
Chapter 16: Financial Leverage and Capital Structure Policy
Chapter 17: Dividends and Payout Policy
Part Seven: Short-Term Financial Planning and Management
Chapter 18: Short-Term Finance and Planning
Chapter 19: Cash and Liquidity Management
Chapter 20: Credit and Inventory Management
Part Eight: Topics in Corporate Finance
Chapter 21: International Corporate Finance