Finance
Fundamentals of Corporate Finance Volume 1
David Whitehurst
UMIST
abc
McGraw-Hill/Irwin
McGraw−Hill Primis
ISBN: 0−390−31999−6
Text:
Fundamentals of Corporate Finance, Sixth
Edition, Alternate Edition
Ross et al.
, This book was printed on recycled paper.
Finance
http://www.mhhe.com/primis/online/
Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights
reserved. Printed in the United States of America. Except as
permitted under the United States Copyright Act of 1976, no part
of this publication may be reproduced or distributed in any form
or by any means, or stored in a database or retrieval system,
without prior written permission of the publisher.
This McGraw−Hill Primis text may include materials submitted to
McGraw−Hill for publication by the instructor of this course. The
instructor is solely responsible for the editorial content of such
materials.
111 FINA ISBN: 0−390−31999−6
, Finance
Volume 1
Ross et al. • Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition
Front Matter 1
Preface 1
I. Overview of Corporate Finance 33
1. Introduction to Corporate Finance 33
2. Financial Statements, Taxes, and Cash Flow 55
II. Financial Statements and Long−Term Financial Planning 83
3. Working with Financial Statements 83
4. Long−Term Financial Planning and Growth 126
III. Valuation of Future Cash Flows 158
5. Introduction to Valuation: The Time Value of Money 158
6. Discounted Cash Flow Valuation 187
7. Interest Rates and Bond Valuation 231
8. Stock Valuation 273
IV. Capital Budgeting 301
9. Net Present Value and Other Investment Criteria 301
10. Making Capital Investment Decisions 340
11. Project Analysis and Evaluation 378
V. Risk and Return 408
12. Some Lessons from Capital Market History 408
13. Return, Risk, and the Security Market Line 443
14. Options and Corporate Finance 481
VI. Cost of Capital and Long−Term Financial Policy 519
15. Cost of Capital 519
16. Raising Capital 553
17. Financial Leverage and Capital Structure Policy 594
18. Dividends and Dividend Policy 632
VII. Short−Term Financial Planning and Management 664
19. Short−Term Finance and Planning 664
20. Cash and Liquidity Management 700
21. Credit and Inventory Management 734
iii
, VIII. Topics in Corporate Finance 773
22. International Corporate Finance 773
23. Risk Management: An Introduction to Financial Engineering 803
24. Option Valuation 832
25. Mergers and Acquisitions 865
26. Leasing 896
iv
Fundamentals of Corporate Finance Volume 1
David Whitehurst
UMIST
abc
McGraw-Hill/Irwin
McGraw−Hill Primis
ISBN: 0−390−31999−6
Text:
Fundamentals of Corporate Finance, Sixth
Edition, Alternate Edition
Ross et al.
, This book was printed on recycled paper.
Finance
http://www.mhhe.com/primis/online/
Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights
reserved. Printed in the United States of America. Except as
permitted under the United States Copyright Act of 1976, no part
of this publication may be reproduced or distributed in any form
or by any means, or stored in a database or retrieval system,
without prior written permission of the publisher.
This McGraw−Hill Primis text may include materials submitted to
McGraw−Hill for publication by the instructor of this course. The
instructor is solely responsible for the editorial content of such
materials.
111 FINA ISBN: 0−390−31999−6
, Finance
Volume 1
Ross et al. • Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition
Front Matter 1
Preface 1
I. Overview of Corporate Finance 33
1. Introduction to Corporate Finance 33
2. Financial Statements, Taxes, and Cash Flow 55
II. Financial Statements and Long−Term Financial Planning 83
3. Working with Financial Statements 83
4. Long−Term Financial Planning and Growth 126
III. Valuation of Future Cash Flows 158
5. Introduction to Valuation: The Time Value of Money 158
6. Discounted Cash Flow Valuation 187
7. Interest Rates and Bond Valuation 231
8. Stock Valuation 273
IV. Capital Budgeting 301
9. Net Present Value and Other Investment Criteria 301
10. Making Capital Investment Decisions 340
11. Project Analysis and Evaluation 378
V. Risk and Return 408
12. Some Lessons from Capital Market History 408
13. Return, Risk, and the Security Market Line 443
14. Options and Corporate Finance 481
VI. Cost of Capital and Long−Term Financial Policy 519
15. Cost of Capital 519
16. Raising Capital 553
17. Financial Leverage and Capital Structure Policy 594
18. Dividends and Dividend Policy 632
VII. Short−Term Financial Planning and Management 664
19. Short−Term Finance and Planning 664
20. Cash and Liquidity Management 700
21. Credit and Inventory Management 734
iii
, VIII. Topics in Corporate Finance 773
22. International Corporate Finance 773
23. Risk Management: An Introduction to Financial Engineering 803
24. Option Valuation 832
25. Mergers and Acquisitions 865
26. Leasing 896
iv
