Fundamentals of Corporate Finance Standard Edition (Mcgraw-Hill/Irwin Series in Finance, Insurance, and Real Estate)

824 Pages·2012·10.879 MB·English

by  Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan

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examples that reflect corporate finance in today’s world. The supplements package has been
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Excel Master, available at no charge on the text’s website, is a unique and interactive Excel tutorial EN
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Less managing. More teaching. Greater learning.
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your knowledge and recommends specific
• Auto-graded assignments, quizzes, and tests.
readings, supplemental study materials,
and additional practice work.* • Detailed Visual Reporting where student and
section results can be viewed and analyzed.
*Available with select McGraw-Hill titles.
• Sophisticated online testing capability.
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Less managing. More teaching. Greater learning.
StuDEntS... InStRuctoRS...
Want to get better grades? (Who doesn’t?) Would you like your students to show up for class more prepared?
(Let’s face it, class is much more fun if everyone is engaged and prepared…)
Prefer to do your homework online? (After all, you are online anyway…)
Want an easy way to assign homework online and track student progress?
Need a better way to study before the big test?
(Less time grading means more time teaching…)
(A little peace of mind is a good thing…)
Want an instant view of student or class performance? (No more wondering if
students understand…)
Need to collect data and generate reports required for administration or
With McGraw-Hill's Connect® Plus Finance,
accreditation? (Say goodbye to manually tracking student learning outcomes…)
StudentS get:
Want to record and post your lectures for students to view online?
• Easy online access to homework, tests, and
quizzes assigned by your instructor.
• Immediate feedback on how you’re doing.
(No more wishing you could call your
instructor at 1 a.m.) With McGraw-Hill's Connect® Plus Finance,
• Quick access to lectures, practice materials,
InStructorS get:
eBook, and more. (All the material you need
to be successful is right at your fingertips.)
• Simple assignment management, allowing you to
• A Self-Quiz and Study tool that assesses spend more time teaching.
your knowledge and recommends specific
• Auto-graded assignments, quizzes, and tests.
readings, supplemental study materials,
and additional practice work.* • Detailed Visual Reporting where student and
section results can be viewed and analyzed.
*Available with select McGraw-Hill titles.
• Sophisticated online testing capability.
• A filtering and reporting function that
allows you to easily assign and report
on materials that are correlated to
accreditation standards, learning
outcomes, and Bloom’s taxonomy.
• An easy-to-use lecture capture tool.
• The option to upload course
documents for student access.
Want an online, searchable version of your textbook?
Wish your textbook could be available online while you’re doing
your assignments?
Connect® Plus Finance eBook
If you choose to use Connect® Plus Finance, you have an
affordable and searchable online version of your book
integrated with your other online tools.
Connect® Plus Finance eBook offers
features like:
• Topic search
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Want to get more value from your textbook purchase?
Think learning finance should be a bit more interesting?
check out the StuDEnt RESouRcES
section under the Connect® Library tab.
Here you’ll find a wealth of resources designed to help you
achieve your goals in the course. Every student has different
needs, so explore the STUDENT RESOURCES to find the
materials best suited to you.
Want an online, searchable version of your textbook?
Wish your textbook could be available online while you’re doing
your assignments?
Connect® Plus Finance eBook
If you choose to use Connect® Plus Finance, you have an
affordable and searchable online version of your book
integrated with your other online tools.
Connect® Plus Finance eBook offers
features like:
• Topic search
• Direct links from assignments
• Adjustable text size
• Jump to page number
• Print by section
Want to get more value from your textbook purchase?
Think learning finance should be a bit more interesting?
check out the StuDEnt RESouRcES
section under the Connect® Library tab.
Here you’ll find a wealth of resources designed to help you
achieve your goals in the course. Every student has different
needs, so explore the STUDENT RESOURCES to find the
materials best suited to you.
Standard Edition
FUNDAMENTALS OF
CORPORATE FINANCE
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The McGraw-Hill/Irwin Series in Finance, Insurance, and Real Estate
Stephen A. Ross
Franco Modigliani Professor of Finance and Economics
Sloan School of Management, Massachusetts Institute of Technology, Consulting Editor
Financial Management Ross, Westerfi eld, and Jordan Saunders and Cornett
Block, Hirt, and Danielsen Essentials of Corporate Finance Financial Institutions Management: A Risk
Foundations of Financial Management Seventh Edition Management Approach
Fourteenth Edition Ross, Westerfi eld, and Jordan Seventh Edition
Brealey, Myers, and Allen Fundamentals of Corporate Finance Saunders and Cornett
Principles of Corporate Finance Tenth Edition Financial Markets and Institutions
Tenth Edition Shefrin Fifth Edition
Brealey, Myers, and Allen Behavioral Corporate Finance: Decisions
Principles of Corporate Finance, Concise that Create Value International Finance
Second Edition First Edition Eun and Resnick
Brealey, Myers, and Marcus White International Financial Management
Fundamentals of Corporate Finance Financial Analysis with an Electronic Sixth Edition
Seventh Edition Calculator Robin
Sixth Edition International Corporate Finance
Brooks
First Edition
FinGame Online 5.0
Investments
Bruner
Bodie, Kane, and Marcus Real Estate
Case Studies in Finance: Managing for
Corporate Value Creation Essentials of Investments Brueggeman and Fisher
Sixth Edition Eighth Edition Real Estate Finance and Investments
Bodie, Kane, and Marcus Fourteenth Edition
Cornett, Adair, and Nofsinger
Finance: Applications and Theory Investments Ling and Archer
Second Edition Ninth Edition Real Estate Principles: A Value Approach
Hirt and Block Third Edition
Cornett, Adair, and Nofsinger
Fundamentals of Investment Management
M: Finance
Tenth Edition Financial Planning and Insurance
First Edition
Hirschey and Nofsinger Allen, Melone, Rosenbloom, and Mahoney
DeMello
Investments: Analysis and Behavior Retirement Plans: 401(k)s, IRAs, and Other
Cases in Finance
Second Edition Deferred Compensation Approaches
Second Edition
Jordan, Miller, and Dolvin Tenth Edition
Grinblatt (editor)
Fundamentals of Investments: Valuation Altfest
Stephen A. Ross, Mentor: Infl uence
and Management Personal Financial Planning
through Generations
Sixth Edition First Edition
Grinblatt and Titman
Stewart, Piros, and Heisler Harrington and Niehaus
Financial Markets and Corporate Strategy
Running Money: Professional Risk Management and Insurance
Second Edition
Portfolio Management Second Edition
Higgins
First Edition Kapoor, Dlabay, and Hughes
Analysis for Financial Management
Sundaram and Das Focus on Personal Finance: An Active Approach
Tenth Edition
Derivatives: Principles and Practice to Help You Develop Successful Financial Skills
Kellison
First Edition Third Edition
Theory of Interest
Kapoor, Dlabay, and Hughes
Third Edition
Financial Institutions and Markets Personal Finance
Ross, Westerfi eld, and Jaffe
Rose and Hudgins Tenth Edition
Corporate Finance
Bank Management and Financial Services Walker and Walker
Ninth Edition
Ninth Edition Personal Finance: Building Your Future
Ross, Westerfi eld, Jaffe, and Jordan
Rose and Marquis First Edition
Corporate Finance: Core Principles
Financial Institutions and Markets
and Applications
Eleventh Edition
Third Edition
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Standard Edition
Tenth Edition
FUNDAMENTALS OF
CORPORATE FINANCE
Stephen A. Ross
Massachusetts Institute of Technology
Randolph W. Westerfi eld
University of Southern California
Bradford D. Jordan
University of Kentucky
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FUNDAMENTALS OF CORPORATE FINANCE
Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the
Americas, New York, NY, 10020. Copyright © 2013, 2010, 2008, 2006, 2003, 2000, 1998, 1995, 1993, 1991 by
The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. No part of this
publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval
system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to,
in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 RJE/RJE 1 0 9 8 7 6 5 4 3 2
ISBN 978-0-07-803463-3 (standard edition)
MHID 0-07-803463-9 (standard edition)
ISBN 978-0-07-747945-9 (alternate edition)
MHID 0-07-747945-9 (alternate edition)
Vice president and editor-in-chief: Brent Gordon
Publisher: Douglas Reiner
Executive editor: Michele Janicek
Executive director of development: Ann Torbert
Development editor II: Jennifer Lohn
Vice president and director of marketing: Robin J. Zwettler
Marketing director: Brad Parkins
Senior marketing manager: Melissa S. Caughlin
Vice president of editing, design, and production: Sesha Bolisetty
Lead project manager: Christine A. Vaughan
Buyer II: Debra R. Sylvester
Cover/interior designer: Pam Verros
Lead media project manager: Brian Nacik
Media project manager: Joyce J. Chappetto
Cover image: Getty Images
Typeface: 10/12 Times Roman
Compositor: MPS Limited, a Macmillan Company
Printer: R. R. Donnelley
Library of Congress Cataloging-in-Publication Data
Ross, Stephen A.
Fundamentals of corporate fi nance / Stephen A. Ross, Randolph W. Westerfi eld, Bradford D.
Jordan.—10th ed., Alternate ed.
p. cm.—(The McGraw-Hill/Irwin series in fi nance, insurance and real estate)
Includes index.
ISBN-13: 978-0-07-803463-3 (standard ed. : alk. paper)
ISBN-10: 0-07-803463-9 (standard ed. : alk. paper)
ISBN-13: 978-0-07-747945-9 (alternate ed. : alk. paper)
ISBN-10: 0-07-747945-9 (alternate ed. : alk. paper)
1. Corporations—Finance. I. Westerfi eld, Randolph W. II. Jordan, Bradford D. III. Title.
HG4026.R677 2013
658.15—dc23
2011042532
www.mhhe.com
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To our families and friends with love and gratitude.
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