Corporate finance (12th Edition)

Specifications

Book Description

“Corporate Finance, 12th Edition” by Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, and Bradford Jordan is likely a widely used and authoritative textbook in the field of corporate finance. Here's a general description based on the typical content and approach of such textbooks:

Financial Management Principles: The book is likely to cover fundamental principles and concepts of financial management in the corporate context. This includes discussions on financial decision-making, valuation, risk, and return.

Time Value of Money: Expect coverage of the time value of money and its application to various financial decisions, including discounted cash flow analysis, net present value, and internal rate of return.

Capital Budgeting: Discussion on capital budgeting, which involves evaluating and selecting investment projects. This may include techniques such as payback period, profitability index, and various discounted cash flow methods.

Cost of Capital: Coverage of the cost of capital, including discussions on the cost of debt, cost of equity, and weighted average cost of capital (WACC). Understanding the cost of capital is crucial for making investment and financing decisions.

Financial Markets and Institutions: The book may provide an overview of financial markets and institutions, exploring how they impact corporate finance decisions. This could include discussions on stocks, bonds, and other financial instruments.

Capital Structure: Examination of capital structure decisions, which involve determining the mix of debt and equity financing. This section may cover theories such as the Modigliani-Miller theorem and factors influencing capital structure choices.

Dividend Policy: Discussion on dividend policy decisions, exploring how companies decide whether to pay dividends or reinvest earnings. Various theories and considerations related to dividend policy may be covered.

Risk and Return: Analysis of risk and return in the context of corporate finance. This may involve discussions on portfolio theory, the capital asset pricing model (CAPM), and the relationship between risk and return.

Corporate Governance: Exploration of corporate governance principles and practices. This could include discussions on the roles of boards of directors, executive compensation, and mechanisms for ensuring accountability.

Real-World Applications: The textbook may include real-world examples, case studies, and practical applications of corporate finance principles to help students understand how these concepts are applied in business settings.

Always refer to the specific edition of the book for the most accurate and detailed information. If the 12th edition has been released after my last update, you may want to check the book's official website or reliable book retailers for the latest information and reviews.