Book Review of

Corporate Finance

Author : Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

Pros : Good section on leveraged buyouts.

Cons : More elementary and less comprehensive than Financial Management.

Grade : B+

Contents : Jump to review...

Part 1 : Overview

1. Introduction to Corporate Finance
2. Accounting Statements and Cash Flow

Part 2 : Value and Capital Budgeting

3. Financial Markets and Net Present Value : First Principles of Finance (Advanced)
4. Net Present Value
5. How to Value Bonds and Stocks
6. Some Alternative Investment Rules
7. Net Present Value and Capital Budgeting
8. Strategy and Analysis in Using Net Present Value

Part 3 : Risk

9. Capital Market Theory
10. Return and Risk : The Capital-Asset-Pricing Model (CAPM)
11. An Alternative View of Risk and Return : The Arbitrage Pricing Theory
12. Risk, Return and Capital Budgeting

Part 4 : Capital Structure and Dividend Policy

13. Corporate-Financing Decisions and Efficient Capital Markets
14. Long-Term Financing : An Introduction
15. Capital Structure : Basic Concepts
16. Capital Structure : Limits to the Use of Debt
17. Valuation and Capital Budgeting for the Levered Firm
18. Dividend Policy : Why Does It Matter

Part 5 : Long-Term Financing

19. Issuing Equity Securities to the Public
20. Long-Term Debt
21. Options and Corporate Finance
22. Warrants and Convertibles
23. Leasing
24. Hedging Risk

Part 6 : Financial Planning and Short-Term Finance

25. Corporate Financial Models and Long-Term Planning
26. Short-Term Finance and Planning
27. Cash Management
28. Credit Management

Part 7 : Special Topics

29. Mergers and Acquisitions
30. Financial Distress
31. International Corporate Finance

Review :

Check back later to see our full review.

Reviewed by David Luhman, MBA, EA

Published 1993 by Irwin. ISBN 0-256-09487-X
Length : 912 pages.