Fundamentals of Corporate Finance Volume 1

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