"Fundamentals of Corporate Finance" explores the intricate world of corporate finance, delving into various methods of raising capital, debt financing, and understanding capital structure decisions. Authored by Stephen Ross, Randolph Westerfield, and Bradford Jordan, this comprehensive guide provides valuable insights into the strategies and considerations involved in corporate financial management.
Chapter A: Raising Equity Capital: The chapter discusses avenues for private companies to raise equity capital, including angel investors, venture capital firms, institutional investors, and corporate investors. It explores the nuances of preferred stock issuance, pre-money and post-money valuations, and exit strategies such as acquisitions or public offerings. The process of an initial public offering (IPO) is examined in detail, covering aspects like underwriters, SEC filings, valuation, pricing the deal, and managing risks.
Chapter B: Debt Financing: This section illuminates the realm of corporate debt, distinguishing between private and public debt markets. It explains various forms of corporate debt instruments such as bank loans, private placements, and corporate bonds, along with their characteristics and market dynamics. The chapter also elucidates bond covenants, repayment provisions, and the impact of debt on a firm's capital structure.
Chapter C: Capital Structure: The final chapter delves into capital structure choices, examining the interplay between debt, equity, and other securities. It introduces the concept of perfect capital markets and explores Modigliani and Miller's propositions regarding capital structure irrelevance. The influence of taxes on capital structure decisions is analyzed, particularly focusing on the interest tax shield and its impact on the weighted average cost of capital (WACC).
Fundamentals of Corporate Finance presents a practical introduction to modern day core principles. The text arm you with a problem solving methodology, real life financial management practices, and a overarching valuation framework that you may apply in your future career
Bradford D. Jordan holds the position of visiting scholar in the Warrington College at the University of Florida, where he teaches courses in finance. His previous positions include the duPont Endowed chair in banking and financial services at the University of Kentucky. Professor Jordan has published multiple articles in top journals on topics such as cost of capital and capital structure. He is a past President of the Southern Finance Association and is co-author of Fundamentals Of Investments, 9th edition, a leading investment textbook.
The late Stephen A Ross was the Franco Modigili professor of finance and economics at the Sloan School of management, Massachusetts Institute of technology. One of the most well known authors in finance and economics, Professor Ross was known for developing the Arbitrage Pricing theory as well as his substantial contribution to the discipline through his work on 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 also served as associate editor of various academic journal s and practitioner journals. He also served as a trustee of caltech.
Randolph W. Westerfeld is Dean Emeritus and Professor of Finance at the University of Southern Cal's Marshall School of Business. He has taught at the university since 1985, and served as the dean of the business school from 1999 to 2004. He is also a member of the Board of Trustees of Oaktree Capital Management, Inc., an investment firm based in Los Angeles.
Great book with good example that helps me understand the material for Intro to Finance class better but some stuff in the book could use some work. If your teacher requires this book I would recommend getting it because it breaks things down really well.
This is easily one the best textbooks I have read, and it's certainly THE BEST finance textbook I've ever read (of at lease three). There have been some absolutely horrible textbooks I've had to wade through for classes, but this is written in comprehensible english. Not only does it covers the topics and adequately explain they, but it also explains formulas, such as the varius "Free Cash Flow" s. The subjects are well organised and complete.
This book is very well written. It provides a thorough understanding of corporate finance and includes a number of advanced topics after a solid foundation in financial management and accounting. The layout of the book is also well organized. However, I did find the introduction to the chapters rather dry.
This book is written really well. Its really breaks down concepts in an easy to understand way. I need this one fo 2 courses and its really good with examples. Although the old version is exactly the same except for the exercises.
I was really excited about purchasing this textbook. I love how the author gives you the full solution to every single question. I also love how the author includes a Solutions Key so you can check your work. Unfortunately, I was disappointed when I opened the book and saw that there were only six questions given in the Solutions Key. That means that I would have to spend an additional 40 minutes trying to figure out why I didn't get the correct answer. I'm not sure if I should return the book or just chalk it up to experience.
