Modern Financial Management, Student Edition

PART I 1 Introduction to Corporate Finance 2 Financial Statements and Cash Flow 3 Financial Statements Analysis and Long-Term Planning 4 Discounted Cash Flow Valuation 5 How to Value Bonds and Stocks 6 Net Present Value and Other Investment Rules 7 Making Capital Investment Decisions 8 Risk Analysis, Real Options, and Capital Budgeting PART III 9 Risk and Return: Lessons from Market History 10 Return and Risk: The Capital Assets Pricing Model (CAPM) 11 An Alternative View of Risk and Return: The Arbitrage Pricing Theory 12 Risk, Cost of Capital, and Capital Budgeting 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 Dividends and Other Payouts PART V 19 Issuing Securities to the Public 20 Long-Term Debt 21 Leasing PART VI 22 Options and Corporate Finance 23 Options and Corporate Finance: Extensions and Applications 24 Warrants and Convertibles 25 Derivatives and Hedging Risk 26 Short-Term Finance and Planning 27 Cash Management 28 Credit Management 29 Mergers and Acquisitions 30 Financial Distress 31 International Corporate Finance

Stephen Ross is presently 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 is 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 currently serves as an associate editor of several academic and practitioner journals. He is a trustee of CalTech, a director of the College Retirement Equity Fund (CREF), and Freddie Mac. He is also the co-chairman of Roll and Ross Asset Management Corporation.Randoloph W. Westerfield is Dean of the Marshall School of Business at University of Southern California and holder of the Robert R. Dockson Dean s Chair of Business Administration. From 1988-93, Professor Westerfield served as the chairman of the School s finance and business economics department and 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 member of the finance faculty for 20 years. His areas of expertise include corporate financial policy, investment management and analysis, mergers and acquisitions, and stock market price behavior. Professor Westerfield has served as a member of the Continental Bank trust committee, supervising all activities of the trust department. He has been consultant to a number of corporations, including AT&T, Mobil Oil and Pacific Enterprises, as well as to the United Nations, the U.S. Department of Justice and Labor, and theState of California.