"Essentials of Corporate Finance, 7th Edition" 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: 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. 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. 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.
Table of Contents
Part I. Overview of Financial Management Ch. 1 Introduction to Financial Management Part 2. Understanding Financial Statements and Cash Flow Ch. 2 Financial Statements, Taxes, and Cash Flow Ch. 3 Working with Financial Statements Part 3. Valuation of Future Cash Flows Ch. 4 Introduction to Valuation: The Time Value of Money Ch. 5 Discounted Cash Flow Valuation Part 4. Valuing Stocks and Bonds Ch. 6 Interest Rates and Bond Valuation Ch. 7 Equity Markets and Stock Valuation Part 5. Capital Budgeting Ch. 8 Net Present Value and Other Investment Criteria Ch. 9 Making Capital Investment Decisions Part 6. Risk and Return Ch. 10 Some Lessons from Capital Market History Ch. 11 Risk and Return Part 7. Long-Term Financing Ch. 12 Cost of Capital Ch. 13 Leverage and Capital Structure Ch. 14 Dividends and Dividend Policy Ch. 15 Raising Capital Part 8. Short-Term Financial Management Ch. 16 Short-Term Financial Planning Ch. 17 Working Capital Management Part 9. Topics in Business Finance Ch. 18 International Aspects of Financial Management Appendix A. Mathematical Tables Appendix B. Key Equations Appendix C. Answers to Selected End-of-Chapter Problems Appendix D. Using the HP-10B and TI BA II Plus Financial Calculators
Stephen A. Ross Sloan School of Management, Franco Modigliani Professor of Finance and Economics, Massachusetts Institute of Technology Stephen A. Ross is the Franco Modigliani Professor of Finance and Economics at the Sloan School of Management, Massachusetts Institute of Technology. Randolph W. Westerfield Marshall School of Business, University of Southern California 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. Bradford D. Jordan Gatton College of Business and Economics, University of Kentucky 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.