Table of Contents

Part I: OverviewChp.1 Introduction to Corporate FinanceChp.2 Accounting Statements and Cash FlowPart II: Value and Capital BudgetingChp.3 Long Term Financial Planning and GrowthChp.4 Net Present ValueChp.5 How to Value Bonds and StocksChp.6 Some Alternative Investment RulesChp.7 Net Present Value and Capital BudgetingChp.8 Strategy and Analysis in Using Net Present ValuePart III: Risk Chp.9 Capital Market Theory: An OverviewChp.10 Return and Risk: The Capital-Asset-Pricing ModelChp.11 An Alternative View of Risk and Return: The Arbitrage Pricing TheoryChp.12 Risk,Cost of Capital, and BudgetingPart IV: Capital Structure and Dividend PolicyChp.13 Corporate Financing Decisions and Efficient Capital MarketsChp.14 Long Term Financing: An IntroductionChp.15 Capital Structure: Basic ConceptsChp.16 Capital Structure: Limits to the Use of DebtChp.17 Valuation and Capital Budgeting for the Levered FirmChp.18 Dividend Policy: Why Does It Matter?Part V: Long Term FinancingChp.19 Issuing Securities to the PublicChp.20 Long Term DebtChp.21 LeasingPart VI: Options, Futures,and Corporate FinanceChp.22 Options and Corporate Fiance: ConceptsChp.23 Options and Corporate Fiance: Extensions and ApplicationsChp.24 Warrants and ConvertiblesChp.25 Derivatives and Hedging RiskPart VII: Financial Planning and Short Term FinanceChp.26 Short term Finance and PlanningChp.27 Cash ManagementChp.28 Credit ManagementPart VIII: Special TopicsChp.29 Mergers and AcquisitionsChp.30 Financial DistressChp.31 International Corporate Finance

About the Author

STEPHEN A. ROSS Sloan School of Management, Massachusetts Institute of Technology 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 widely 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 also served as an associate editor of several academic and practitioner journals. He was a trustee of CalTech. He died suddenly in March of 2017. 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. He 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. 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.