'Modern Financial Management', by Ross, Westerfield, and Jaffe is a popular
textbook that emphasizes the modern fundamentals of the theory of finance, while providing
contemporary examples to make the theory come to life.
The authors aim to present corporate finance as the working of a
small number of integrated and powerful intuitions, rather than a collection of unrelated
topics. They develop the central concepts of modern finance: arbitrage, net present value,
efficient markets, agency theory, options, and the trade-off between risk and return, and
use them to explain corporate finance with a balance of theory and application. The
well-respected author team is known for their clear, accessible presentation of material
that makes this text an excellent teaching tool. Brad Jordan, known for his successful
work on the RWJ Fundamentals and Essentials books, contributed to this edition. His
influence will be seen particularly in the writing style with smoother coverage of topics,
and the increased quality in the problem material.
Brief Contents
PART I Overview
1 Introduction to Corporate Finance
2 Financial Statements and Cash Flow
3 Financial Statements Analysis and Long-Term Planning
PART II Valuation and Capital Budgeting
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 Risk
9 Risk and Return: Lessons from Market History
10 Return and Risk: The Capital Asset Pricing Model (CAPM)
11 An Alternative View of Risk and Return: The Arbitrage Pricing Theory
12 Risk, Cost of Capital, and Capital Budgeting
PART IV 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 Dividends and Other Payouts
PART V Long-Term Financing
19 Issuing Securities to the Public
20 Long-Term Debt
21 Leasing
PART VI Options, Futures, and Corporate Finance
22 Options and Corporate Finance
23 Options and Corporate Finance: Extensions and Applications
24 Warrants and Convertibles
25 Derivatives and Hedging Risk
PART VII Short-Term Finance
26 Short-Term Finance and Planning
27 Cash Management
28 Credit Management
PART VIII Special Topics
29 Mergers and Acquisitions
30 Financial Distress
31 International Corporate Finance
Appendix A: Mathematical Tables
Appendix B: Solutions to Selected End-of-Chapter Problems
Name Index
Subject Index
Paperback, 926 pages